Is Sara Lee coming back? Potential buyers line up to save the iconic brand
- Replies 11
Fans of classic Australian dessert brand Sara Lee were devastated last month when news broke that the iconic company had fallen into voluntary administration.
However, in a surprising new development, it seems that beloved treats like apple pies, cheesecakes and frozen chocolate desserts from Sara Lee may not be disappearing from our shelves just yet.
After its unexpected financial setback, the renowned dessert brand Sara Lee might just find a lifeline as reports indicate that over 40 parties are considering buying the company.
On October 17, after over 50 years of offering iconic products such as apple pies, cheesecakes, and frozen chocolate desserts, Sara Lee entered voluntary administration.
The company appointed management consultants FTI Consulting to manage the sale or reorganisation of the business. Read the full details here.
Vaughan Strawbridge of FTI Consulting informed The Australian Financial Review of a ‘huge amount of interest in the business’.
‘It’s been a good mix of local and international trade buyers, local manufacturers that own their own brands. And we’ve also got a good mix of financial investors who are interested as well,’ said Mr Strawbridge.
He further confirmed that Sara Lee continues its operation, with nearly 200 employees actively producing its delightful desserts at its Lisarow factory, located in regional New South Wales (NSW).
‘Production will continue, people are still employed; importantly, we will be paying the wages on time,’ Mr Strawbridge confirmed.
Mr Strawbridge attributed the company’s challenges primarily to inflation.
‘There’s no surprise that the cost of doing business has gone up from raw materials, energy, logistics, and that’s just all the inflationary pressure,’ he said.
‘They have price increases that go through to customers and ultimately to end consumers, and that has resulted in reduced level of sales.’
Sara Lee was acquired from McCain Foods by New Zealand-based private equity firm South Island Office in 2021 for a projected $95 million.
The company records annual sales of roughly $122 million, with a significant portion stemming from frozen desserts.
Video source: Facebook/@nbntelevision
Mr Strawbridge noted that unanticipated costs after its acquisition contributed to its financial difficulties.
‘It has had to set up its head office function and back office. A lot of functions have been extracted out of the old McCain business, including logistics providers and cold storage. Those costs have been higher than first anticipated,’ he added.
The floods in Lismore, which devastated its ice cream factory, leading to missed sales and extra expenses to restore supply, further contributed to its downturn.
Mr Strawbridge said he’s working to confirm the position of unsecured creditors, with the first meeting for these creditors set for Friday.
Meanwhile, Aussies were taken aback by the news of Sara Lee entering administration, with fans expressing their surprise and sadness on social media platforms.
A user wrote, ‘No. Say it isn’t so,’ and another added, ‘No good for all families sad.’
A disappointed fan of the brand also posted: ‘There goes the iconic chocolate Bavarian.’
Someone else wrote: ‘Coles have not stocked their Deep Dish Apple Pie for over 7 months. We used to buy 5 each week for 6 years.’
Several social media users speculated about the reasons behind the dessert maker’s decline.
‘It’s because they changed the strawberry cheesecake’, one shared, while another suggested it’s the shift towards healthier eating: ‘Because people are getting healthier and waking up when it comes to sugar addiction.’
Others chimed in, confessing they no longer buy frozen desserts.
‘Why buy frozen when you can buy fresh?’ one asked.
Members, how many of you love Sara Lee’s products? Which item would you miss the most? Share your top picks in the comments below!
However, in a surprising new development, it seems that beloved treats like apple pies, cheesecakes and frozen chocolate desserts from Sara Lee may not be disappearing from our shelves just yet.
After its unexpected financial setback, the renowned dessert brand Sara Lee might just find a lifeline as reports indicate that over 40 parties are considering buying the company.
On October 17, after over 50 years of offering iconic products such as apple pies, cheesecakes, and frozen chocolate desserts, Sara Lee entered voluntary administration.
The company appointed management consultants FTI Consulting to manage the sale or reorganisation of the business. Read the full details here.
Vaughan Strawbridge of FTI Consulting informed The Australian Financial Review of a ‘huge amount of interest in the business’.
‘It’s been a good mix of local and international trade buyers, local manufacturers that own their own brands. And we’ve also got a good mix of financial investors who are interested as well,’ said Mr Strawbridge.
Apple pie desserts with Orchard Picked Apples, boxed and ready to serve. Image source: Facebook/@SaraLeeDesserts
He further confirmed that Sara Lee continues its operation, with nearly 200 employees actively producing its delightful desserts at its Lisarow factory, located in regional New South Wales (NSW).
‘Production will continue, people are still employed; importantly, we will be paying the wages on time,’ Mr Strawbridge confirmed.
Mr Strawbridge attributed the company’s challenges primarily to inflation.
‘There’s no surprise that the cost of doing business has gone up from raw materials, energy, logistics, and that’s just all the inflationary pressure,’ he said.
‘They have price increases that go through to customers and ultimately to end consumers, and that has resulted in reduced level of sales.’
Sara Lee was acquired from McCain Foods by New Zealand-based private equity firm South Island Office in 2021 for a projected $95 million.
The company records annual sales of roughly $122 million, with a significant portion stemming from frozen desserts.
Video source: Facebook/@nbntelevision
Mr Strawbridge noted that unanticipated costs after its acquisition contributed to its financial difficulties.
‘It has had to set up its head office function and back office. A lot of functions have been extracted out of the old McCain business, including logistics providers and cold storage. Those costs have been higher than first anticipated,’ he added.
The floods in Lismore, which devastated its ice cream factory, leading to missed sales and extra expenses to restore supply, further contributed to its downturn.
Mr Strawbridge said he’s working to confirm the position of unsecured creditors, with the first meeting for these creditors set for Friday.
Meanwhile, Aussies were taken aback by the news of Sara Lee entering administration, with fans expressing their surprise and sadness on social media platforms.
A user wrote, ‘No. Say it isn’t so,’ and another added, ‘No good for all families sad.’
A disappointed fan of the brand also posted: ‘There goes the iconic chocolate Bavarian.’
Someone else wrote: ‘Coles have not stocked their Deep Dish Apple Pie for over 7 months. We used to buy 5 each week for 6 years.’
Several social media users speculated about the reasons behind the dessert maker’s decline.
‘It’s because they changed the strawberry cheesecake’, one shared, while another suggested it’s the shift towards healthier eating: ‘Because people are getting healthier and waking up when it comes to sugar addiction.’
Others chimed in, confessing they no longer buy frozen desserts.
‘Why buy frozen when you can buy fresh?’ one asked.
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haven’t had Sara Lee for donkeys years and probably never will again.homemade for me
