Sara Lee is shopping its iconic bread business, according to executives familiar with the matter. The company may have even relied on company employees to begin the search for possible buyers, sidestepping tried-and-true investment banks, which often results in media attention.
Sara Lee, which has built increasing authority in the coffee segment, in addition to other areas, has struggled with its namesake bread business in recent years, thanks in part to increasingly price-sensitive shoppers who have opted for private label loaves.
The company declined to comment.
Phil Lempert, a super-market industry expert, however, was not surprised by the possibility of a sale.
“It’s a powerhouse in the branded bread business and the question is how does it grow?” he said. “They haven’t been able to grow it, so this is the next logical step for the brand.”
Possible buyers include Hostess, the Irving, Tex.-based snack manufacturer and Mexico City-based Grupo Bimbo, the world’s largest bread maker, with popular brands in Latin America, Europe, China, Canada, Puerto Rico and the United States.
Representatives for Hostess and Bimbo Bakeries USA, a division of Grupo Bimbo, declined to comment for this story.
eyork@tribune.com
