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Sara Lee Corporation

Company Profile Publication Date: 1 Apr 2011

www.datamonitor.com Europe, Middle East & Africa 119 Farringdon Road London EC1R 3DA United Kingdom

Americas 245 5th Avenue 4th Floor New York, NY 10016 USA

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t: +44 20 7551 9000 f: +44 20 7551 9090 e: [email protected]

t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected]

t: +61 2 8705 6900 f: +61 2 8088 7405 e: [email protected]

Sara Lee Corporation

ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

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Sara Lee Corporation TABLE OF CONTENTS

TABLE OF CONTENTS Company Overview..............................................................................................4 Key Facts...............................................................................................................4 Business Description...........................................................................................5 History...................................................................................................................7 Key Employees...................................................................................................10 Key Employee Biographies................................................................................11 Major Products and Services............................................................................17 Revenue Analysis...............................................................................................19 SWOT Analysis...................................................................................................21 Top Competitors.................................................................................................25 Company View.....................................................................................................26 Locations and Subsidiaries...............................................................................28

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Sara Lee Corporation Company Overview

COMPANY OVERVIEW Sara Lee Corporation (Sara Lee or ‘the company’) is a global manufacturer and marketer of consumer goods primarily in the food and beverages segment.The company operates in North America, Europe and Asia-pacific regions. It is headquartered in Downers Grove, Illinois and employs about 33,400 people. The company recorded revenues of $10,793 million during the financial year ended June 2010 (FY2010), a decrease of 0.8% as compared to 2009. Net sales were impacted by dispositions net of acquisitions. The operating profit of the company was $918 million in FY2010, an increase of 88.5% over 2009. The net profit was $506 million in FY2010, an increase of 39% over 2009.

KEY FACTS Head Office

Sara Lee Corporation 3500 Lacey Road Downers Grove Illinois 60515 USA

Phone

1 630 598 6000

Fax

1 630 598 8482

Web Address

http://www.saralee.com

Revenue / turnover 10,793.0 (USD Mn) Financial Year End

June

Employees

33,400

New York Ticker

SLE

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Sara Lee Corporation Business Description

BUSINESS DESCRIPTION Sara Lee Corporation (Sara Lee or ‘the company’) is engaged in manufacturing and marketing of branded products for consumers throughout the world focusing primarily on the meats, bakery, and beverage categories. The company has presence in Americas, Europe, Africa, Asia, and Australia. Sara Lee is the owner of approximately 25,000 active trademark registrations and applications. Sara Lee operates through five business divisions: international beverage, North American retail, *North American fresh bakery, North American foodservice, and international bakery. The international beverage segment offers coffee and tea products that are sold in major markets around the world, including Europe, Australia and Brazil, through both the retail and foodservice channels. The segment also offers direct delivery to restaurants and warehouses through its direct delivery system. In Europe, some of the prominent brands marketed by this segment include Douwe Egberts, Senseo, Maison du Cafe, Marcilla, Merrild and Pickwick; while in South America, key brands include Cafe do Ponto, Cafe Caboclo, Uniao and Cafe Pilao. The North American retail segment sells a variety of packaged meat products to retail customers in North America. Its products include hot dogs and corn dogs, breakfast sausages and sandwiches, smoked and dinner sausages, premium deli and luncheon meats, bacon and cooked hams. The major brand names under which North American retail sells its products include Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, Bryan, State Fair and Kahn's. The North American fresh bakery segment sells a variety of bakery products to retail customers in North America. Its products include a wide array of fresh and frozen baked products and specialty items, including bread, buns, bagels, rolls, muffins, specialty bread, and cakes. The segment markets its products under the Sara Lee, Earth Grains, Colonial, Rainbo, Holsum, IronKids, Mother’s, Sunbeam, Sun−Maid, San Luis Sourdough and Heiner’s brand names. The North American foodservice segment sells a variety of meat, bakery, and beverage products to foodservice customers in North America. Its products include hot dogs and corn dogs, breakfast sausages and sandwiches, smoked and dinner sausages, premium deli and luncheon meats, bacon, ham, beef, turkey, bread, pastries, bagels, rolls, muffins, frozen dough, frozen pies, cakes, cheesecakes, roast and ground and liquid coffee, cappuccinos, lattes and hot and iced teas. In addition, the segment sells private label refrigerated dough products to retail customers in North America. The major clients for North American foodservice segment are restaurants, warehouses, hospitals and other large institutions. Private label refrigerated dough products are sold to grocery stores and mass merchandisers. The international bakery segment markets a variety of bakery and dough products to retail and foodservice customers in Europe and Australia. Its primary products include a variety of bread, buns, rolls, specialty bread, refrigerated dough, and frozen desserts. The international bakery segment often delivers its products to retail stores and warehouses through its direct store delivery system.

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Sara Lee Corporation Business Description

The major brands under which the international bakery sells its products include Bimbo, CroustiPate, Ortiz, BonGateaux, and Sara Lee. *The company announced its agreement to divest North American fresh bakery business to Grupo Bimbo.

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Sara Lee Corporation History

HISTORY Sara Lee Corporation (Sara Lee or ‘the company’) was established in 1939 when Nathan Cummings acquired CD Kenny Company, a wholesale distributor of sugar, coffee and tea in Baltimore. In 1942, Sara Lee purchased Sprague Warner & Company, a distributor of canned and packaged food nationwide, and moved its headquarters to Chicago. The company began trading on the New York Stock Exchange in 1946. The company's name was changed to Consolidated Foods Company in 1954. During 1960s, the company expanded further by acquiring food and non-food companies in the US and overseas. Some of its purchases included Jonker Fris, a Dutch producer of canned goods, along with its overseas operations, E. Kahn's Sons Company and Bryan Foods. During 1968, the company also entered the apparel business by acquiring Gant and Country Set, and the women's intimate apparel segment with purchase of Canadelle. In 1970, the company acquired Hillshire Farm and Rudy's Farm followed by the acquisition of a Dutch personal care company, Erdal, which was later named as Intradal. During 1980s, the company expanded overseas to Spain, Australia and France by acquiring Productos Cruz Verde, Jimmy Dean Meats, Nicholas Kiwi, Bil Mar Foods, Dim, Adams-Millis Corporation, Champion Products, Van Nelle and Hygrade Food Products. In 1985, the company's name was changed to Sara Lee Corporation. The company further extended its brand portfolio by acquiring Henson-Kickernick, Playtex Apparel, Rinbros, Mallorca and BP Nutrition's Consumer Foods Group during the 1990s. The company also acquired bath and body care consumer brands of SmithKline Beecham; skin care and sweetener brands of Bayer; Italian intimate apparel manufacturer, Lovable Italiana; NutriMetics; Cafe do Ponto and Wechsler Coffee during the same decade. Sara Lee acquired several retail coffee brands including Chock full o'Nuts, Hills Bros, MJB and Chase & Sanborn, from Nestle US in 2000. In the same year, the company also acquired UK-based apparel manufacturer and marketer, Courtaulds Textiles. In 2001, the company acquired the Earthgrains Company, a key player in the US bakery market, and a major European bakery company, in the same year. In 2004, Sara Lee sold assets of its Houston bread and bun bakery to Flowers Foods. In the same year, the company sold its canned and pouched meat businesses to Bumble Bee Seafoods. Later in 2004, Sara Lee ceased production at its Houston facility and at its San Antonio bread and bun bakeries and transferred the production of branded bread and buns from these bakeries to its Dallas bakery center. The company announced the re-organization of its business operations to focus on distinct consumers and geographic markets in 2005. The company was restructured into three lines of business: North American retail, North American foodservice and Sara Lee International. It also sold its US retail

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Sara Lee Corporation History

coffee business to Segafredo Zanetti as per the restructuring plan. In the same year, the company concluded an agreement to sell Its European Nuts and Snacks Business to Pepsi. At the end of the year, the company voluntarily delisted its common stock from Amsterdam, Paris, and Switzerland Stock Exchanges. Sara Lee acquired Pennsylvania-based Butter-Krust Baking in 2006. In the same year, the company completed the sale of its European branded apparel business to an affiliate of Sun Capital Partners. Also in 2006, the company announced the sale of its Courtaulds apparel business to a group led by PD Enterprise. In the same year, Sara Lee sold its European meats business to Smithfield Foods. Further in the year, the company divested its European nuts and snacks; European branded apparel, UK meat snacks and UK apparel businesses and raised $179 million. Subsequently, in 2006, Sara Lee spun off its branded apparel Americas/Asia businesses into an independent public company called Hanesbrands. In 2007, the company finalized plans for The Kitchens of Sara Lee, a multi-million dollar research and development campus to be located at the site of the company's corporate headquarters in Downers Grove, Illinois. In the same year, the company issued a precautionary recall of selected whole wheat bread products produced at the company's Meridian, Miss Bakery and sold at grocery retailers from the states of Mississippi and Alabama, Arkansas, Missouri, Western Georgia, Southwestern Tennessee, Southeastern Louisiana and Florida. The company sold its 49.9% stake in the Qualtia Alimentos business to its joint venture partner, Xignux, in 2008. In the same year, Sara Lee’s foodservice division introduced UTZ certified Good Origin line of coffee in the US. Also, in the year, the company entered into an agreement to acquire a family-owned coffee business, Cafe Moka, in Brazil. Sara Lee entered into a seven-year outsourcing deal with Information technology giant, IBM, in 2009. As per the deal, IBM would provide outsourcing services to the company's finance and accounting services for its global back office operations. In 2009, Sara Lee North American retail segment collaborated with MillerCoors to introduce Hillshire Farm Miller High Life Beer Brats. In the same month, the company announced the opening of its Illinois-based innovation campus, The Kitchens of Sara Lee. Sara Lee’s international bakery segment reached an agreement to sell three of its Spanish bakery production plants; Briviesca (Burgos), Antequera (Malaga) and Aguimes (Gran Canaria); to Grupo Siro in the same year. The company announced the agreement to sell its 51% stake in the Godrej Sara Lee Ltd. joint venture to Godrej Consumer Products Ltd. during May 2010. The transaction was finalized in June 2010. Also, in the same month, the company received a binding offer from SC Johnson to acquire its remaining insecticides business. Sara Lee announced the sale of its air care business to The Procter & Gamble Company in July 2010.

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Sara Lee Corporation History

In November 2010, the company announced an agreement to divest its North American fresh bakery business to Grupo Bimbo, for $959 million. In the same month, the company announced the European Commission’s approval for the sale of global body care and European detergents businesses to Unilever. Further in the month, Sara Lee acquired Cafe Damasco, a coffee business based in the southern region of Brazil. The company completed the sale of its global body care and European detergents businesses to Unilever in December 2010. The same month, Sara Lee announced the agreement with Symex Holdings and Pental Products, a wholly owned subsidiary of Symex, to sell Sara Lee’s White King and Janola business. In January 2011, Sara Lee announced the division of company into two separate, publicly traded companies. The separation is expected to be completed by 2012.

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Sara Lee Corporation Key Employees

KEY EMPLOYEES Name

Job Title

Board

Jan Bennink

Executive Chairman

Executive Board

Christopher B. Begley

Director

Non Executive Board

277725 USD

Crandall C. Bowles

Director

Non Executive Board

195011 USD

Virgis W. Colbert

Director

Non Executive Board

195011 USD

James S. Crown

Director

Non Executive Board

230011 USD

Laurette T. Koellner

Director

Non Executive Board

318529 USD

John McAdam

Director

Non Executive Board

195011 USD

Ian Prosser

Director

Non Executive Board

287531 USD

Norman R. Sorensen

Director

Non Executive Board

195011 USD

Jeffrey W. Ubben

Director

Non Executive Board

205638 USD

Cornelis J.A. van Lede

Director

Non Executive Board

265113 USD

Jonathan P. Ward

Director

Non Executive Board

215017 USD

Marcel H. M. Smits

Executive Vice President and Chief Senior Management Executive Officer

3135718 USD

Stephen J. Cerrone

Executive Vice President, Human Resources

Senior Management

2653335 USD

Paulette Dodson

Interim General Counsel and Corporate Secretary

Senior Management

Christopher J. Fraleigh

Executive Vice President and Chief Senior Management Executive Officer, North American Retail and Foodservice

3827731 USD

Frank van Oers

Executive Vice President and Chief Senior Management Executive Officer, Sara Lee International Beverage and Bakery

2956342 USD

B. Thomas Hansson

Senior Vice President, Strategic Planning and Corporate Development

Mark A. Garvey

Senior Vice President and the Chief Senior Management Financial Officer

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Compensation

Senior Management

1950963 USD

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Sara Lee Corporation Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES Jan Bennink Board: Executive Board Job Title: Executive Chairman Mr. Bennink is currently the Executive Chairman at Sara Lee. He served as the Chief Executive Officer of Royal Numico, from 2002 to 2007. Prior to Royal Numico, Mr. Bennink was with Groupe Danone from 1995 to 2002, most recently as the President of the company’s dairy division. From 1989 to 1995, he held various management positions with Benckiser. Mr. Bennink began his career in brand management with Procter & Gamble. Currently he is a member of the board of directors of Coca Cola Enterprises.

Christopher B. Begley Board: Non Executive Board Job Title: Director Since: 2006 Age: 58 Mr. Begley has been a Director at Sara Lee since 2006. He is the Chairman of the board and Chief Executive Officer at Hospira. Prior to Hospira, Mr. Begley was President of Abbott's Hospital Products Division. Before Abbott, he was Vice President of Marketing for the V. Mueller Division of American Hospital Supply Corp. Mr. Begley currently serves as a Director of the Executives’ Club of Chicago, Healthcare Leadership Council, Economic Club of Chicago, Generic Pharmaceutical Association and AdvaMed.

Crandall C. Bowles Board: Non Executive Board Job Title: Director Since: 2008 Age: 63 Ms. Bowles has been a Director at Sara Lee since 2008. She is the Chairman of Springs Industries. Earlier, Ms. Bowles has served as a Director of Springs Industries since 1978 and as its Chief Executive Officer from 1998 until 2006. Subsequent to a spinoff and merger in 2006 and until 2007, she served as Co-Chairman and Co-Chief Executive Officer of Springs Global Participacoes. Ms. Bowles also serves as a Director of Deere & Company and J.P. Morgan Chase. She also serves on the boards of the Carolina Thread Trail and the University of North Carolina Press

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Sara Lee Corporation Key Employee Biographies

Virgis W. Colbert Board: Non Executive Board Job Title: Director Since: 2006 Age: 71 Mr. Colbert has been a Director at Sara Lee since 2006. He is retired Executive Vice President of worldwide operations of Miller Brewing Company. Before joining Miller, Mr. Colbert was general superintendent of manufacturing for Chrysler Corporation. He currently serves as a member of the board of The Stanley Works, Lorillard, Merrill Lynch & Co, and The Manitowoc Company. He is the Chairman Emeritus of the Thurgood Marshall Scholarship Fund and former Chairman of the board of trustees for Fisk University, Nashville, Tenn.

James S. Crown Board: Non Executive Board Job Title: Director Since: 1998 Age: 57 Mr. Crown has been a Director at Sara Lee since 1998. He also serves as the President of Henry Crown and Company. Mr. Crown joined Henry Crown & Company in 1985, where he manages real estate, operating companies and security investments. Prior to that, he worked in positions of increasing responsibility for Salomon Brothers, where he was responsible for a variety of advisory services. Mr. Crown serves on the boards of General Dynamics Corporation and JPMorgan Chase. He is the Chairman of the Board of Trustees for the University of Chicago, and trustee of the Museum of Science and Industry and the Chicago Symphony Orchestra.

Laurette T. Koellner Board: Non Executive Board Job Title: Director Since: 2003 Age: 56 Ms. Koellner has been a Director at Sara Lee since 2003. She is a retired Boeing Company executive and former member of The Boeing Company's Office of the Chairman. Earlier, Ms. Koellner served as the President of Connexion by Boeing from 2004 until 2006; and Executive Vice President and Chief Human Resources and Administration Officer of Boeing from 2002 to 2004. She also serves as a Director of American International Group and Celestica.

John McAdam

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Sara Lee Corporation Key Employee Biographies

Board: Non Executive Board Job Title: Director Since: 2008 Age: 62 Dr. McAdam has been a Director at Sara Lee since 2008. He is the retired Chief Executive Officer of Imperial Chemical Industries from 2003 until its acquisition by Akzo Nobel in 2008. Dr. McAdam served as Executive Vice President of ICI Paints from 1998 to 2003 and as a member of its Group Board from 1999 to 2003, and as Chairman and Chief Executive Officer of its Quest International business from 1997 to 1998. Prior to that, he held a number of positions with Unilever from 1974 to 1997, including senior positions within its Birds Eye Walls, Quest International and Unichema International businesses. Dr. McAdam serves as the Chairman of Rentokil Initial and United Utilities and as a Director of J Sainsbury and Rolls-Royce Group. He is also a member of the University of Cambridge Chemistry Advisory Board.

Ian Prosser Board: Non Executive Board Job Title: Director Since: 2004 Age: 67 Mr. Prosser has been a Director at Sara Lee since 2004. He is the retired Chairman of InterContinental Hotels Group. Mr. Prosser joined the precursors to the InterContinental Hotels Group (Six Continents and Bass) in 1969 and served in a variety of management positions including Chief Executive Officer, Group Managing Director and Director of finance and planning. Prior to joining the InterContinental Hotels Group, he served for three years at Cooper Brothers Chartered Accountants (now PricewaterhouseCoopers). Mr. Prosser also serves as a Director at GlaxoSmithKline and Deputy Chairman of British Petroleum.

Norman R. Sorensen Board: Non Executive Board Job Title: Director Since: 2007 Age: 65 Mr. Sorensen has been a Director at Sara Lee since 2007. He also serves as the President, International Asset Management and Accumulation at Principal Financial Group since 2010. Mr. Sorensen has also been the President and Chief Executive Officer of Principal International since 2001; and Executive Vice President of Principal Financial Group, and Executive Vice President of Principal Life Insurance Company since 2007. Prior to that, he served at American International Group, from 1989 to 1997. Currently, Mr. Sorensen serves as Chairman and Director of the International Insurance Society.

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Sara Lee Corporation Key Employee Biographies

Jeffrey W. Ubben Board: Non Executive Board Job Title: Director Since: 2008 Age: 49 Mr. Ubben has been a Director at Sara Lee since 2008. He has been the Founder, Chief Executive Officer and Chief Investment Officer at ValueAct Capital since 2000. During 1995-2000, Mr. Ubben served as a managing partner at Blum Capital Partners and prior to that spent eight years at Fidelity Management and Research, serving as a fund manager and research analyst. He also serves as a Director of Acxiom Corporation, Gartner Group, Misys, and Omnicare.

Cornelis J.A. van Lede Board: Non Executive Board Job Title: Director Since: 2002 Age: 67 Mr. van Lede has been a Director at Sara Lee since 2002. He is the former Chairman of the board of management and Chief Executive Officer of Akzo Nobel. Prior to that, Mr. van Lede served as the President and Chief Executive Officer of Koninklijke Nederhorst Bouw, from 1977 to 1980. He serves as the Chairman of the Supervisory Board of Heineken and as a member of the Supervisory Board of Philips Electronics. Mr. van Lede is a non-executive Director with Air France-KLM Holding and Air Liquide.

Jonathan P. Ward Board: Non Executive Board Job Title: Director Since: 2005 Age: 56 Mr. Ward has been a Director at Sara Lee since 2005. He is the Chairman of the Chicago office and a Managing Director at Lazard. Prior to Lazard, Mr. Ward was at The ServiceMaster Company for five years, where he began as President and Chief Executive Officer in 2001 and then became Chairman and Chief Executive Officer in 2002. From 1997 to 2001, he served as the President and Chief Operating Officer of R.R. Donnelley & Sons Company. During his 23 years at R.R. Donnelley, Mr. Ward served in a variety of other leadership positions.

Marcel H. M. Smits Board: Senior Management

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Sara Lee Corporation Key Employee Biographies

Job Title: Executive Vice President and Chief Executive Officer Age: 48 Mr. Smits is currently the Executive Vice President and Chief Executive Officer at Sara Lee. Previously, he served as the Chief Financial Officer at Koninklijke KPN. Prior to KPN, Mr. Smits was the Chief Financial Officer at Vendex KBB (now known as Maxeda). In addition, he held various financial and management positions in Europe, South America and Asia during his 13 year career at Unilever.

Stephen J. Cerrone Board: Senior Management Job Title: Executive Vice President, Human Resources Since: 2007 Age: 51 Mr. Cerrone has been the Executive Vice President, Human Resources at Sara Lee since 2007. He is responsible for the company's global human resources organization. Previously, Mr. Cerrone was at JPMorgan Chase, where he served as Executive Vice President, Human Resources, for the retail financial services division of the bank. Before joining Bank One in 2003, he was with Burger King Corporation for 14 years.

Paulette Dodson Board: Senior Management Job Title: Interim General Counsel and Corporate Secretary Ms. Dodson is currently the Interim General Counsel and Corporate Secretary at Sara Lee. She was previously Chief Counsel of Sara Lee’s North America Operations. Ms. Dodson joined Sara Lee in 2007 after 14 years with Tribune Company. She currently serves on the boards of the Chicago Bar Foundation as Secretary and the Chicago Committee on Minorities in Large Law Firms.

Christopher J. Fraleigh Board: Senior Management Job Title: Executive Vice President and Chief Executive Officer, North American Retail and Foodservice Since: 2008 Age: 46 Mr. Fraleigh has been the Executive Vice President and Chief Executive Officer, North American Retail and Foodservice at Sara Lee since 2008. He joined Sara Lee in 2005. Prior to joining Sara Lee, Mr. Fraleigh served as General Manager for General Motors' GMC-Buick-Pontiac division. Before joining General Motors as Executive Director of advertising and corporate marketing in 2001,

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Sara Lee Corporation Key Employee Biographies

he was Vice president, Colas at PepsiCo. Mr. Fraleigh also serves as a Director at Darden Restaurants.

Frank van Oers Board: Senior Management Job Title: Executive Vice President and Chief Executive Officer, Sara Lee International Beverage and Bakery Since: 2007 Age: 51 Mr. van Oers has been the Executive Vice President and Chief Executive Officer, Sara Lee International Beverage and Bakery at Sara Lee since 2007. He joined Sara Lee in 1996. Previously, Mr. van Oers served as the Regional Vice President and President of Douwe Egberts Coffee Systems International. Prior to Sara Lee, he held various positions with Chicopee; and as an Auditor with Coopers & Lybrand and Deloitte Haskins & Sells.

B. Thomas Hansson Board: Senior Management Job Title: Senior Vice President, Strategic Planning and Corporate Development Since: 2007 Age: 50 Mr. Hansson has been the Senior Vice President, Strategic Planning and Corporate Development at Sara Lee since 2007. Prior to Sara Lee, he was at Booz Allen Hamilton for 19 years. Mr. Hansson started his career with Boston Consulting Group in 1983.

Mark A. Garvey Board: Senior Management Job Title: Senior Vice President and the Chief Financial Officer Age: 46 Mr. Garvey is currently the Senior Vice President and the Chief Financial Officer at Sara Lee. He has also been serving as the Corporation Controller at the company since 2010, and Vice President since 2002. Since joining Sara Lee in 1995, Mr. Garvey has served in various positions of increasing responsibility including Chief Financial Officer of Sara Lee North America from 2008 to 2009; Chief Financial Officer of Sara Lee International from 2006 to 2008; and Executive Director, Corporate Development from 1999 to 2001.

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Sara Lee Corporation Major Products and Services

MAJOR PRODUCTS AND SERVICES Sara Lee Corporation (Sara Lee or ‘the company’) is a global manufacturer and marketer of consumer goods primarily in the food and beverages segment. The company's key products include the following: Products: Food products: Hot dogs Corn dogs Breakfast sausages Sandwiches Smoked and dinner sausages Premium deli Meats Bacon Cooked hams Frozen pies Beef Turkey Bakery products: Bread Buns Bagels Rolls Muffins Specialty bread and cakes Cakes Cheesecakes Desserts Refrigerated dough products Beverage products: Roast, ground and liquid coffee Cappuccinos Lattes Hot and iced teas Brands:

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Sara Lee Corporation Major Products and Services

Douwe Egberts Senseo Maison du Cafe Marcilla Merrild Pickwick Cafe do Ponto Cafe Caboclo Cafe Pilao Hillshire Farm Ball Park Jimmy Dean Sara Lee Bryan State Fair Earth Grains Colonial Rainbo Holsum IronKids Mother's Sunbeam Sun-Maid San Luis Sourdough Heiner’s Bimbo CroustiPate Ortiz BonGateaux

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Sara Lee Corporation Revenue Analysis

REVENUE ANALYSIS The company recorded revenues of $10,793 million during the financial year ended June 2010 (FY2010), a decrease of 0.8% over 2009. For FY2010, United States, the company's largest geographic market, accounted for 62.7% of the total revenues. Sara Lee generates revenues through five business divisions: international beverage (29.8% of the total revenues during FY2009), North American retail (26.0%), North American fresh bakery (19.7%), North American foodservice (17.3%), and international bakery (7.3%). Revenues by Division* In FY2010, the international beverage division recorded revenues of $3,221 million in FY2010, an increase of 5.2% over 2009. The North American retail division recorded revenues of $2,818 million, an increase of 1.8% over 2009. The North American fresh bakery division recorded revenues of $2,128 million in FY2010, a decrease of 3.3% as compared to 2009. The North American foodservice division recorded revenues of $1,873 million in FY2010, a decrease of 10.5% as compared to 2009. The international bakery division recorded revenues of $785 million in FY2010, a decrease of 1.3% as compared to 2009. *Percentages are calculated including the intersegment sales and are rounded-off. Revenues by Geography** United States, Sara Lee's largest geographical market, accounted for 62.7% of the total revenues in FY2010. Revenues from United States reached $6,769 million in 2010, a decrease of 3.5% as compared to 2009. The Netherlands accounted for 9.3% of the total revenues in FY2010. Revenues from The Netherlands reached $1,001 million in 2010, an increase of 1.4% over 2009. Spain accounted for 5.6% of the total revenues in FY2010. Revenues from Spain reached $607 million in 2010, a decrease of 6.5% as compared to 2009.

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Sara Lee Corporation Revenue Analysis

France accounted for 4.7% of the total revenues in FY2010. Revenues from France reached $509 million in 2010, a decrease of 3.2% as compared to 2009. Other accounted for 17.7% of the total revenues in FY2010. Revenues from other reached $1,907 million in 2010, an increase of 12% over 2009. **Percentages are rounded-off.

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Sara Lee Corporation SWOT Analysis

SWOT ANALYSIS Sara Lee Corporation (Sara Lee or ‘the company’) is a global manufacturer and marketer of consumer goods primarily in the food and beverages segment.The company owns approximately 25,000 active trademark registrations and applications in various countries. Large number of registered trademarks gives an edge to Sara Lee, sustaining its competitive advantage. However, the increasing commodity prices could have a material adverse impact on the profitability of the company. Strengths

Weaknesses

Strong brand portfolio in the food and beverage category ensures stable revenue growth Large number of registered trademarks in the end markets of Sara Lee Market leading position in several coffee markets of Europe and South America

Reliance on Wal-Mart curtails pricing and discount flexibility

Opportunities

Threats

Cost rationalization and organizational efficiency improvement prospects under Project Accelerate Positive developments in the US foodservice industry

Increasing wheat prices would result in higher operating costs Retail consolidation and growing private label usage

Strengths

Strong brand portfolio in the food and beverage category ensures stable revenue growth Sara Lee has strong brands across all its businesses. The major brands under which its North American retail segment sells its products include Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, Bryan, State Fair and Kahn's. The company's North American retail bakery segment sells its products under brand names like Senseo, Sara Lee, Earth Grains, Grant's Farm, Colonial, Rainbo, Holsum, IronKids, Mother's, Sunbeam, Healthy Choice and Heiner's. Prominent brands of its international beverage segment include Douwe Egberts, Senseo, Maison du Cafe, Marcilla, Merrild, Pickwick, Cafe do Ponto, Cafe Caboclo, Uniao and Cafe Pilao. The major brands under which the international bakery segment sells its products include Bimbo, CroustiPate, Ortiz and BonGateaux.

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Sara Lee Corporation SWOT Analysis

The company sells its diversified portfolio of global and popular brands across the Americas, Europe, Africa, Asia, and Australia, ensuring stable revenue growth and providing the company with a competitive edge in the marketplace. Large number of registered trademarks in the end markets of Sara Lee Trademarks are amongst the most valuable assets of Sara Lee. The company owns approximately 25,000 active trademark registrations and applications in various countries. Sara Lee's core brands are covered by trademark registrations in most of the countries of the world in which the company does business. The company also has an active program designed to ensure that its marks and other intellectual property rights are registered, renewed, protected and maintained. Additionally, the company also owns a number of patents, copyrights, both registered and unregistered, and proprietary trade secrets, technology, know-how processes and other intellectual property rights that are not registered by the company. Large number of registered trademarks gives an edge to Sara Lee. The company can leverage on its trademarks and, sustain the uniqueness and identity of its brand. Market leading position in several coffee markets of Europe and South America Sara Lee is the leading player of roasted and grounded coffee in several key markets of Europe and South America. The company markets several popular coffee brands in these regions through its international beverage segment. In Europe, some of the prominent brands marketed by the company include Douwe Egberts, Senseo, Maison du Cafe, Marcilla, Merrild and Pickwick; while in South America, significant brands include Cafe do Ponto, Cafe Caboclo, Uniao and Cafe Pilao.The company has built significant market position in these regions, primarily in Netherlands, where the company holds nearly 55.3% market share and is the leading player in the Dutch coffee market. Sara Lee also holds largest market share in Belgium (56.5%), Hungary (40.1%), and Denmark (34.5%). Besides, it is the second largest player in France and Spain with 22.7% and 20.6% market shares respectively. In addition to Europe, the company also occupies significant market share in Brazil with nearly 21.0% of the markets share. A leading market position provides Sara Lee with significant bargaining power as well as stabilizes the company's financial growth.

Weaknesses

Reliance on Wal-Mart curtails pricing and discount flexibility Sara Lee derives a significant portion of its revenues from sales to Wal-Mart. Net sales to Wal-Mart Stores were $1,600 million, or approximately 15.1% of the company’s revenue in 2010, of which, $998 million sale were made by the North American retail business and $508 million was generated by the North American fresh bakery business.

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Sara Lee Corporation SWOT Analysis

During recession, the introduction of heavy discounting and subsequent pricing pressure exerted by Wal-Mart on the stocking companies so as to encourage customer purchases, led to margin pressure on companies like Sara Lee. Since the company derives significant revenues from Wal-Mart sales, the business policies and practices of Wal-Mart is bound to affect Sara Lee. Under these circumstances, the company’s bargaining power for pricing and shelf-space is affected, leading to possible impact on sales and profitability.

Opportunities

Cost rationalization and organizational efficiency improvement prospects under Project Accelerate Sara Lee launched Project Accelerate during 2008 as part of its organizational restructure plan. It was primarily a cost rationalization and efficiency improvement approach where in the company undertook several measures including the business process outsourcing to low-cost hubs, operating segment restructuring and spin-off of loss making units, introduction of supply chain efficiencies, cost reductions pertaining to the corporate and employee benefits. The project became operational during FY2009. Sara Lee incurred $123 million and $249 million of cumulative costs for the implementation of the project during FY2009 and FY2010 respectively, and expects to incur $280-300 million during FY2011 and over $300 million during FY2012. In contrast to this, the project delivered $49 million of cumulative benefits during FY2009 and $180 million during FY2010. In the longer period, the company expects to generate $270-$290 million of benefits during FY2011 and $350-$400 million of benefits during FY2012. The cost rationalization and restructuring overhaul through Project accelerate, hence, would enable the company to enhance its margins as well as profitability. Positive developments in the US foodservice industry Sara Lee caters to the restaurants and other foodservice centers in the US through its North America foodservice division. The division contributes nearly 17.3% to the total revenues of the company as of FY2010. The decline in the foodservice industry also impacted the division’s performance, which registered a year-on-year decline of 10.5% in FY2010 and 4.3% in FY2009. However, the US foodservice industry started witnessing favorable market scenario in 2010. As per industry reports while consumer visits to restaurants declined in the first half of 2010, the rate of decline slowed compared to the decline in previous year. Consumer visits declined by 1% in the quarter ending June 2010, an improvement over the 3% decline in visits during the same quarter of 2009. The current foodservice industry forecast projects a decline of 1.2% in real inflation-adjusted growth for the 2010 year, compared to a decline of 6% in 2009, and a decline of 0.3% in 2011. The improved economic outlook for the foodservice sector augurs well for the company’s foodservice division. Since the company has supply agreements with leading restaurants and institutions, the increased consumer demand would lead to better revenues for Sara Lee.

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Sara Lee Corporation SWOT Analysis

Threats

Increasing wheat prices would result in higher operating costs Wheat constitutes an important raw material for the company’s bakery division. However, the wheat future prices have gained substantially in 2010 primarily due to the drought in Russia, the third largest exporter of wheat in 2009; and harvest losses from hot weather in Kazakhstan and parts of the European Union. Earlier, the global wheat prices increased due to the supply constraints resulting from the floods in Canada, a major whet exporter. For instance, US wheat prices reached their highest levels since 2008, and reached $7 per bushel in August 2010. The decline in supply from the major wheat producing and exporting countries would put further upward pressure on the commodity prices. The increase in commodity prices have negative implications for the operating costs and hence the profitability of the company. Retail consolidation and growing private label usage The retail food industry, in which the company competes, comprises supermarkets, super centers, warehouse stores, convenience stores, coffee shops, snack bars, delicatessens and restaurants, and is intensely competitive with respect to food quality, price, service, convenience, location and concept. The industry is often affected by changes in consumer tastes; national, regional or local economic conditions; currency fluctuations; demographic trends; the type, number and location of competing food retailers and products; and disposable purchasing power. The company has to always adapt fast to these external changes outside its control. Superior quality and an increasing desire among consumers to maximize their household budgets and getting value for money has led to growth of the private label market in food, drinks, personal care, and home hygiene in the US and Europe. Consequently, consumer spending on private label food, drinks and personal care in the US has been rising with the strongest growth seen in food markets. Retail chains are keen to push private label food products owing to better margins. According to Private Label Manufacturer’s Association, the annual private label sales in the US have increased by 34% to $55,500 million in supermarkets during 2005-09 period. Besides, an estimated $15 billion to $20 billion in private label sales are in channels that are not traditionally counted, such as in warehouse clubs, limited assortment/box stores, convenience stores and dollar stores, producing a $100,000 million industry. With the increasing popularity of private labels combined with the depth of their penetration in local markets, Sara Lee may see the erosion of its market share in North America.

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Sara Lee Corporation Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Sara Lee Corporation

Cargill, Incorporated Kraft Foods, Inc. ConAgra Foods, Inc. Tyson Foods, Inc. Hostess Brands, Inc. General Mills, Inc.

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Sara Lee Corporation Company View

COMPANY VIEW A statement by Marcel H. M. Smits, interim Chief Executive Officer at Sara Lee Corporation is given below. The statement has been taken from the company's 2009 annual report. The three words on the cover of this report clearly articulate where we have been, where we are today and where we are going in the future. I’d like to offer you some perspective about each. Stronger Strength in business can be measured in many ways. I’d like to point out two that stand out for us in recent years. First, we are winning in the marketplace behind the strength of our brands. Market share performance is a good indicator of our progress. In North American Retail, share grew in 10 of our 12 core categories in fiscal 2010. In North American Fresh Bakery, we saw branded share gains recently in spite of a highly competitive environment. And, in International Beverage, behind on-trend new products, we successfully grew and defended our strong share positions in the face of challenging economic conditions. Our success is predicated on a complementary set of strong capabilities, including supply chain, marketing, customer management and innovation. The second is our strengthened talent base. We’ve taken deliberate steps to provide more training and support for our employees, while setting very high standards for new hires. We have a world-class group of employees working with a common mission, vision and values, as well as true alignment around their goals, plans and actions. Working with talented people gives everyone at Sara Lee greater confidence in our ability to succeed in the future. Simpler The most apparent move to simplify Sara Lee has been our ongoing portfolio rationalization. During fiscal 2010, we began the process of divesting our International Household and Body Care businesses. To date, we have announced four transactions and have closed the sale of Air Care to The Procter & Gamble Company and our stake in an Indian Insecticides joint venture to our partner Godrej Consumer Products. We have announced binding offers to sell our Body Care business to Unilever and our non-Indian Insecticides operation to SC Johnson. Both are expected to close by the end of calendar year 2010. We have also continued to exit non-core, low-margin businesses, such as commodity meats. Simplification is not only about our portfolio, but also about how we run our business. By streamlining processes and improving our systems, we have a leaner, more effective approach to managing Sara

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Sara Lee Corporation Company View

Lee. In particular, Project Accelerate – a company-wide cost reduction and productivity initiative with simplification at its core –continues to make meaningful contributions to both the bottom line and the quality of our operations. Better With great people, brands and plans, as well as supporting a growing, simpler business, we are truly getting better every day. Over the course of fiscal 2010, we raised our adjusted earnings per share guidance three times and ultimately exceeded it at year-end. We saw adjusted operating segment income increase in most of our segments, highlighted by strong improvement in our two largest businesses: North American Retail and International Beverage. And, cash from operations was up $52 million to $952 million, in spite of the fact that we made a $200 million voluntary pension cash contribution to reduce future obligations and mitigate volatility. We also announced a new capital plan that will return significant value to our shareholders by repurchasing $2.5 to $3 billion of our stock over a three-year period, while gradually increasing our dividend. And we will continue to evaluate the best opportunities for value creation, including potential acquisitions. The conclusion you can draw is that being stronger, simpler and better is paying off and has us well-positioned for our future. I’d like to end by thanking all of our employees around the world who have made our success possible. In addition, our Board of Directors continues to be an outstanding resource and plays a pivotal role in helping to shape our strategy. On behalf of all Sara Lee employees, I want to extend our deepest thanks to Brenda Barnes for the incredible leadership and vision she provided over the past six years. Without her perseverance and dedication, Sara Lee would not be as well-positioned as it is today. We wish her the absolute best as she moves on to the next chapter in her life. And, finally, I want to thank our shareholders for their support. We remain entirely committed to delivering superior shareholder value, and believe we have the plans and people to do so.

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Sara Lee Corporation Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES Head Office Sara Lee Corporation 3500 Lacey Road Downers Grove Illinois 60515 USA P:1 630 598 6000 F:1 630 598 8482 http://www.saralee.com

Other Locations and Subsidiaries Sara Lee Cafes do Brasil Alameda Araguaia 120 Alphaville Barueri Sao Paulo CEP 06455000 BRA

Sara Lee Household & Bodycare Mollardgasse 33 Vienna A 1060 AUT

Sara Lee Coffee & Tea Retail Czech Republic Praha 9 190 00 Vysocany CZE

Merrild Coffee Systems Nyvang 16 Middelfart 5500 DNK

Maison du Cafe Coffee Systems Paris Nord II Batiment Le Rimbaud 22 Avenue des Nations Villepinte 93420 FRA

Sara Lee C&T Retail Germany Edmund-Rumpler Strasse 6 Koln D 51149 DEU

Sara Lee Coffee & Tea Belgium Potaarde Grimbergen 1850 BEL

Sara Lee Coffee and Tea Hellas 100 Kifissou Ave Egaleo Athens 122 41 GRC

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