Sara Lee to acquire Brazilian coffee business
November 29, 2010
DOWNERS GROVE, ILL. — Sara Lee Corp. has entered an agreement to acquire Cafe Damasco, a coffee business based in southern Brazil with annual sales of about $60 million.
“The acquisition of Cafe Damasco will create a stronger foothold for Sara Lee in the Brazilian territory given Damasco’s strong market position in the southern part of Brazil,” said Frank van Oers, chief executive officer, Sara Lee international beverage and bakery. “We will benefit from Damasco’s strong sales and distribution network in the South. The transaction will also deliver manufacturing synergies in our facility in the Sao Paulo region as well as an improved competitive position in the Northeast thanks to the excellent Damasco manufacturing facility in that area. With our current brands Pilao and Caboclo, we already have a relevant market position in the central regions of Sao Paulo and Rio de Janeiro, which account for roughly half of the total Brazilian coffee market.”
Sara Lee already has various coffee brands in Brazil, including Pilao, Caboclo, Cafe do Ponto, Moka and Seleto.