Sara Lee to Acquire Coffee Business in Brazil

Company to strengthen its competitive position in the world's second-largest coffee consuming country.

18/09/08 Sara Lee Corp. announced that it has signed an agreement to acquire Café Moka, a family-owned coffee business located in the São Paulo metropolitan area in Brazil. Terms of the agreement were not disclosed. The transaction is expected to close in October 2008 and will be filed with the Brazilian competition authorities for review and approval.

Café Moka is well-positioned in the São Paulo region. The company's largest brand is the mainstream brand Moka, while the smaller Jaragua brand focuses on the economy segment of the market. The company serves more than 4,000 small and medium retail customers through a direct distribution system. Café Moka’s total net sales in 2007 were approximately $65 million.

"With the acquisition of Café Moka, we will complement and strengthen our position in the Brazilian coffee market, particularly in the important São Paulo  area, where the company is located," said Frank van Oers, chief executive officer of Sara Lee's international beverage and bakery business. "The company has a very well-established direct sales and distribution system for the growing small and medium trade segment, with ample expansion opportunities. The transaction also includes a green coffee processing plant, which will give us access to the coffee farmers in Brazil's main coffee growing state Minas Gerais and will help to advance our sustainable coffee program even further."

Brazil is the number one coffee producing country in the world and the second-largest coffee consuming country. Sara Lee is market leader in Brazil,  currently marketing five coffee brands: Pilão, Caboclo, Café do Ponto, União and Seleto.