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Sara Lee Corp. Signs Exclusive Partnership With Philips for all Philips-Branded Consumer Coffee Systems and Acquires Full Rights to Global SENSEO™ Trademark


News provided by

Sara Lee Corp

26 Jan, 2012, 07:30 GMT

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DOWNERS GROVE, Illinois, January 26, 2012 /PRNewswire/ --

Partnership Will Increase Breakthrough Innovation and Expand Geographic Footprint for SENSEO, a Global Leader in the Single-Serve Coffee Segment

Sara Lee Corp. (NYSE: SLE) today announced it has agreed to enter into a nine-year exclusive partnership with Philips on Philips-branded consumer coffee systems that will drive innovation and expansion into new markets for its leading SENSEO™ coffee brand.  Sara Lee and Philips currently co-own the brand, with each company having a 50% stake.   Under the terms of the agreement, Sara Lee will pay Philips a total amount of EUR170 million.

Sara Lee and Philips have been working together on SENSEO since 2001, with Sara Lee producing the coffee pods and Philips designing, manufacturing and distributing the single-serve machines. Together, the two companies have built SENSEO into one of the leading single-serve coffee systems, with over 33 million appliances sold worldwide.  Upon closing, Sara Lee will have full control of the SENSEO trademark, and is expected to expand into new coffee segments and markets.  Philips will continue to design, manufacture and distribute all SENSEO machines over the next nine years as the brand builds on its leadership position.

"This acquisition and partnership allow us to strengthen our relationship with Philips to focus on innovation in coffee technology and aggressively push geographical expansion," said Jan Bennink, executive chairman of the board, Sara Lee Corp.  "Philips' long history of innovation, combined with superior retail strength in our key markets, makes it the perfect partner to work with as we take SENSEO to the next level."   

"Owning 100 percent of SENSEO, our most global coffee brand, is a major step for 'CoffeeCo' as we prepare for our upcoming spin-off into a separate, publicly-traded company," said Michiel Herkemij, chief executive officer, Sara Lee Coffee and Tea.  "With increased innovation, we believe this move will enable us to build on our leading position and further position SENSEO as a global power brand in the coffee segment."

"With SENSEO, Philips and Sara Lee pioneered the market for portioned coffee solutions, revolutionizing the consumption of high-quality coffee in the home," said Pieter Nota, Chief Executive Officer of Philips Consumer Lifestyle. "Over 33 million SENSEO appliances have been sold since its launch in 2001, and with today's agreement we're setting the stage for future success."

About Sara Lee Corporation

Sara Lee Corp. (NYSE: SLE) and its leading portfolio of food and beverage brands, including Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Pickwick Teas, Sara Lee and Senseo, generate nearly $8 billion in annual net sales from continuing operations and employ approximately 20,000 people worldwide.  In January, 2011, Sara Lee Corp. announced that it will divide the company into two pure -play publicly-traded companies, one focused on the international coffee and tea market and the other on North American meats.  For more information on the company, please visit saralee.com.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity." Headquartered in the Netherlands, Philips employs over 120,000 employees with sales and services in more than 100 countries worldwide. With sales of EUR 22.3 billion in 2010, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at http://www.philips.com/newscenter.

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