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Sara Lee to rename meat company Hillshire Brands
June 5, 2012 / 3:22 PM / 5 years ago

Sara Lee to rename meat company Hillshire Brands

* Hillshire Brands to trade under “HSH” on NYSE

* Plans $100 mln in cost-savings by ‘15, sales and volume growth

* Sara Lee shares up slightly in morning trading

June 5 (Reuters) - Hillshire Brands Co will be the new name of Sara Lee Corp’s North American meat business, once the company spins off its coffee and tea unit later this month.

Hillshire, with $4 billion in revenue and brands including Jimmy Dean sausages, Ball Park hot dogs and Hillshire Farm lunch meat, will trade on the New York Stock Exchange under the ticker symbol “HSH.”

Sara Lee revealed the company’s name and its financial and strategic goals in a meeting on Tuesday with investors in New York.

Hillshire Brands is targeting net sales growth of 4 percent to 5 percent by the end of 2015 and volume growth of 2 percent to 3 percent, according to Sean Connolly, who will be the company’s chief executive officer.

Hillshire Brands will also increase its marketing and advertising budget, as well as the percentage of revenue coming from new products, said Connolly, who now heads up Sara Lee’s North American Retail and Foodservice unit.

Hillshire Brands, which will emerge as a standalone company on June 28, also expects $100 million in additional cost savings by the end of 2015.

The business being spun off is an international coffee and tea business to be called D.E. Master Blenders 1753.

In May, Sara Lee reported a lower-than-expected quarterly profit and tempered its full-year outlook. It said earnings per share should land in the middle of its forecast range of 89 cents to 95 cents, while net sales and operating income should be at the low end of their ranges.

The company’s shares were up 0.4 percent at $20.52 in morning trade on the New York Stock Exchange. (Reporting by Martinne Geller in New York; Editing by Lisa Von Ahn)

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