Sara Lee Corp. revealed its strategy for its North American foods business, Hillshire Brands Company, which emphasized new product development, marketing investment and disciplined cost control. Management expects its strategy to deliver annual revenue growth of 4-5 percent and an operating margin of 10 percent by fiscal year 2015 and have a near-term dividend payout ratio of 30-35 percent. The new name of the company, announced earlier today, will become effective after the June 28, 2012 spin-off to shareholders of its international coffee and tea business.
“We envision making Hillshire Brands Company the most innovative meat-centric food company in the U.S.,” said Sean Connolly, CEO of Sara Lee Corp.'s North American Retail and Foodservice business, who becomes Hillshire Brands Company's CEO after the spin-off. “We begin life in a dynamic sector as a major player with four iconic mainstream meat brands – Jimmy Dean, Ball Park, Hillshire Farm and State Fair – and our two artisanal brands – Aidells and Gallo. They position us well and provide tangible opportunity for growth in value-added products.