Sara Lee, No Plans Yet in Getting U.S Coffee Deals

Sara Lee Corp is not rushing in to make any deals in the U.S coffee market even though they are focusing their business on coffee and meat, according to a statement given by its interim chief executive.

There are already rumors spreading about certain business deals in the U.S coffee market especially since Starbucks Corp had announced earlier this month that they want to end their distribution deal with the Kraft Foods Inc who has been selling their packaged coffee products at various supermarkets since 1998.

Starbucks is also making the coffee pods for Kraft’s one-cup Tassimo coffee brewer, which is a significant competitor of Sara Lee’s Senseo coffee system.

Sara Lee and Starbucks are two of the world’s biggest coffee companies. The image of heightened competition between these two companies started last week when media reports were released that Starbucks is going to launch its very own one-cup brewer.

However, a spokesman from Starbucks informed on Monday that the company has no plans yet to start its own one-cup brewer.

Aside from that, analysts suppose that once Starbucks ends their business deal with Kraft, it is likely that Kraft will also let go of their Maxwell House business since they are already focusing on their candy business along with the British confectioner Cadbury. If that happens, Sara Lee is a potential suitor.

Smits, the person who has lead Sara Lee since May, believe that Starbucks is not yet looking for a new partner to distribute their packaged coffees. But, Sara Lee will look long and hard if there are any potential acquisitions, and that includes Maxwell House.

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