US-owned multinational fmcg group Sara Lee is considering a fundamental restructuring that could result in the demise of many non-core brands.
The group has grown through acquisition and now has over one hundred divisions – all operating separately. Chief executive Steve McMillan intends to meld this unwieldy conglomeration into a handful of larger units and invest the resultant cost savings into new product development, advertising and marketing.
Sara Lee’s former policy of growth through acquisition is out for the count. “The prices being paid for consolidation are very high," said McMillan. "We have to go for organic growth."
News Source: CampaignLive (UK)