Sara Lee 2008 Annual Report Download - page 21

Household and Body Care sells products in four primary categories:
body care, air care, shoe care and insecticides. Body care consists
of soaps, shampoos, bath and shower products, deodorants, shaving
creams and toothpastes, which are sold primarily in Europe under
brands such as Sanex, Duschdas, Radox, Monsavon and Zendium.
Air care provides air fresheners under the Ambi Pur brand in Europe,
Africa, Australia and certain Asian countries. Shoe care includes
polishes, cleaners and wax primarily under the Kiwi brand in many
countries around the world. Insecticides are sold primarily in Europe
and Asia under brands such as Vapona, Catch, GoodKnight, Bloom
and Ridsect.
The following is a summary of results by business segment:
In millions 2008 2007 2006
Net sales
North American Retail Meats $÷2,424 $÷2,355 $÷2,259
North American Retail Bakery 2,183 1,998 1,871
Foodservice 2,221 2,197 2,179
International Beverage 3,215 2,617 2,320
International Bakery 929 799 742
Household and Body Care 2,291 2,042 1,827
Total business segments 13,263 12,008 11,198
Intersegment sales (51) (25) (23)
Net sales $13,212 $11,983 $11,175
The following tables summarize the components of the
percentage change in net sales as compared to the prior year.
Net Sales Bridge – Components of Change 2008 versus 2007
Price/Mix/ Acquisitions/
Volume Other Dispositions Currency Total
North American
Retail Meats 2.1 % 0.9 % –% –% 3.0%
North American
Retail Bakery 1.3 7.9 – – 9.2
Foodservice (3.1) 4.0 – 0.2 1.1
International Beverage 1.5 7.1 – 14.3 22.9
International Bakery 0.3 2.7 – 13.1 16.1
Household and
Body Care 4.6 (2.4) 0.1 9.9 12.2
Total business
segments 1.2 % 3.4 % –% 5.7% 10.3%
Sara Lee Corporation and Subsidiaries 19
North American Retail Bakery sells a wide variety of bakery products
to retail customers in North America including fresh and frozen
baked products and specialty items, including bread, buns, bagels,
rolls, muffins, specialty bread, frozen pies, cakes, cheesecakes and
other desserts. This segment includes the results of the corpora-
tion’s Senseo retail coffee business in the U.S. The major brands
include Sara Lee, Earth Grains, Colonial, Rainbo, Holsum, IronKids,
Mother’s, Sunbeam, Sun-Maid, Healthy Choice
and Heiner’s, certain
of which are used under licensing arrangements.
Foodservice sells a variety of meat, bakery and beverage products
to foodservice customers in North America including hot dogs and
corn dogs, breakfast sausages and sandwiches, smoked and dinner
sausages, premium deli and luncheon meats, bacon, cooked and
dry hams, beef, turkey, bread, pastry, bagels, rolls, muffins, refriger-
ated dough, frozen pies, cakes, cheesecakes, roast, ground and liquid
coffee, cappuccinos, lattes, teas and a variety of sauces, dressings
and condiments. Sales are made in the foodservice channel to dis-
tributors, restaurants, hospitals and other large institutions. The
Foodservice segment also offers direct delivery of beverage products
to restaurants and warehouses through its direct delivery system.
International Beverage sells coffee and tea products in certain
markets around the world, including Europe, Australia and Brazil.
Sales are made in both the retail channel to supermarkets, ware-
house clubs and national chains, and in the foodservice channel to
distributors. The segment also offers direct delivery to restaurants
and warehouses through its direct delivery system. In Europe, some
of the more prominent brands are Douwe Egberts, Senseo, Maison
du Café, Marcilla, Merrild
and Pickwick, while in South America,
significant brands include Café do Ponto, Café Caboclo, União
and Café Pilão.
International Bakery
sells a variety of bakery and dough products
to retail and foodservice customers in Europe and Australia. Products
include a variety of bread, buns, rolls, specialty bread, refrigerated
dough and frozen desserts. Sales are made in the retail channel
to supermarkets, warehouse clubs and national chains and in the
foodservice channel to distributors and other institutions. The major
brands under which International Bakery sells its products include
Bimbo, CroustiPate, Ortiz, BonGateaux and Sara Lee.