Hillshire Brands Company
), formerly Sara Lee Corporation, has launched a new version of its
popular Lemon Pound Cake and an improved Butter Pound Cake under
its famous brand Sara Lee.
HILLSHIRE BRAND (HSH): Free Stock Analysis
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The newly-launched Lemon Pound Cake is a variation of the
traditional American lemon cake and contains real lemon juice. The
cake can be complimented with fresh fruits and whipped cream.
The Butter Pound Cake is now moister than before, just the way
consumers prefer. Sara Lee Desserts has a wide portfolio of
sweet goods, including cheesecakes, pound cakes, pies, cakes and
sweet breakfast products. The addition of these two varieties will
make its portfolio richer than before.
There is an increasing demand for new varieties of healthy packaged
food products that are tasty and can be easily served. Also, given
the rise in lifestyle diseases, more and more people are concerned
about the nutritional value of packaged food. Consumers prefer food
products with simple natural ingredients with minimum preservatives
and optimum processing.
As such, Sara Lee is focused on catering to these demands by
bringing in product innovation and increasing the nutritional value
of its food products. Some of its newer products have fewer
calories per serving, as well as less cholesterol. The products are
also packaged in a way that helps portion control so that even
'sinful' desserts can be consumed in a healthy way.
Sara Lee intends to focus its resources on its most profitable food
and beverage businesses. As such, the company has been shedding its
redundant units one by one. On June 2012, Sara Lee Corporation
completed the spin-off of its international coffee and tea business
into a separate publicly traded company. After the spin-off, the
coffee and tea company is to be called CoffeeCo whereas Sara Lee
Corporation changed its name to Hillshire Brands Company. The
spin-off is part of Sara Lee's plan to trim its portfolio in order
to provide the best foundation for a strong and focused business.
Hillshire Brands Company offers packaged meat and other food
products. The company owns famous brands like State Fair, Hillshire
Farm, Jimmy Dean, Ball Park, Sara Lee frozen bakery and Chef Pierre
We currently have an Underperform recommendation on Hillshire
Brands Company. The stock carries a Zacks #4 Rank (short-term