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Smucker Completes Sara Lee Coffee Acquisition

Posted On: 1/4/2012

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Sara Lee Corp., Sarah Lee North American foodservice coffee and tea business, J.M. Smucker Co., Smucker coffee, office coffee service, OCS, commercial coffee, single-cup coffee, Senseo coffee brewer, foodservice business, Folgers, Dunkin' Donuts, Douwe Egberts, liquid coffee, coffee news

ORRVILLE, OH -- The J.M. Smucker Co. has completed its acquisition of the majority of Sara Lee Corp.'s North American foodservice coffee and hot beverage business. The company announced the $350 million all-cash deal in October. | SEE STORY

The acquisition includes Sara Lee's liquid coffee concentrate business marketed under the licensed Douwe Egberts brand and sold through foodservice channels in North America. It also includes a variety of roast and ground coffee, cappuccino, tea and cocoa products. The companies also entered into a long-term partnership to collaborate on liquid coffee technology for the foodservice market.

Nearly 500 Sara Lee employees will join Orrville, OH-based J.M. Smucker.

Sara Lee, whose brands include Sara Lee, Ball Park and Jimmy Dean, said it plans to sell or close the remaining assets of its North American coffee business. Of the $530 million in sales generated by Sara Lee's foodservice beverage business, about $285 million is associated with assets sold to J.M. Smucker.

Sara Lee also announced plans to discontinue its Senseo single-cup coffee business in North America, beginning March 31, with the exception of certain online channels.

J.M. Smucker's growing coffee business includes the Folgers and Dunkin' Donuts brands. The company also acquired Rowland Coffee Roasters' Hispanic coffee brands Café Bustelo and Café Pilon earlier this year.