Sara Lee to be sold to New Zealand investor group

Sara Lee is set to be sold to a New Zealand investor group. See what the move means for local workers and the much loved dessert brand.

Sara Lee is set to be sold to a New Zealand-based investor group.

South Island Office (SIO) has announced it will buy Sara Lee from McCain Foods (Aust) Pty Ltd for an undisclosed price.

The SIO has announced plans to combine the iconic brand with Christchurch-based baking company Original Foods Baking Co which has been operating for 30 years. SIO bought Original Foods Baking Co in November 2020 for $30m, signalling there were other purchases in the wings.

The investor group has indicated it will continue to grow the Central Coast business as it brings together the two baking companies which supply to Australia, New Zealand and internationally.

Sara Lee has been sold to a New Zealand investor group.

Back in 2019, McCain appointed Sara Lee general manager Mark Mackaness to build the business in order for it to operate independently.

As part of the sale, Mr Mackaness has also invested in the business and will be an equity partner and group chief executive officer. Sara Lee’s current leadership team will be staying with the business.

Mr Mackaness said that under the terms of the sale, all current Lisarow-based Sara Lee employees will also remain with the business.

“Our customers should experience seamless service throughout this acquisition process, as McCain will continue to provide business process and services support to Sara Lee for a period following the sale, allowing us to plan for the future,” he said.

Sara Lee general manager Mark Mackaness celebrated the dessert king’s 50th birthday in June. Picture: Troy Snook

Mr Mackaness said the partnership allowed both businesses to gain exposure to new channels and markets across Australia and New Zealand.

“Sara Lee is highly complementary to Original Foods Baking Co.,” Mr Mackaness said.

“Original Foods Baking Co. is already branching out to Australia and beyond with its range of brownies, slices, bites and more. At Sara Lee, we have built an iconic Australian bakery brand, and our quality ice cream, cheesecakes, apple pies, danishes and puddings have been a household favourite in Australia and New Zealand for 50 years.”

Sara Lee marked its 50th anniversary in June, while Original Foods Baking Co celebrates 30 year.

“We have been aligned in our love of baking for many years. Our teams are a natural fit,” Mr Mackaness said.

Original Foods Baking Co has been operating for 30 years. Picture: Facebook

He said since 2013, McCain invested more than $40m in Sara Lee’s product innovation and infrastructure to ensure the brand continues to grow.

“We will continue to run independently, employing locally and offering customers the same quality range,” he said.

“The future is bright for Sara Lee. Uniting two great baking businesses that will work together to grow into Australia and New Zealand’s premier frozen baked goods supplier is genuinely exciting.

“We will be investing back behind the Sara Lee brand to continue to give Aussie and Kiwi consumers the great classics they love, with a lot of new products to come as well.

Local workers on the production line at Sara Lee in Lisarow in 1978. Local workers will keep their jobs under terms of the new sale.

“Importantly, Sara Lee has been very much a sweet part of the Central Coast food manufacturing landscape for 50 years at the Lisarow Bakery, and we look forward to this continuing well into the future.”

Original Foods Bakery Co chief executive officer Anthony Honeybone said it was exciting for the New Zealand company to be associated with an iconic brand such as Sara Lee.

“It’s incredible, Sara Lee has such a strong presence in Australia and New Zealand retail,” he told the Express.

“Our strengths are in the food service. There’s a lot of things that make this alignment cool, we have similar ethics around quality baking, we source ingredients locally and are passionate about how our products taste. These investors are focused this alignment and have a genuine interest in the industry.”

Original Foods Baking Co's signature dish is the cookie caramel slice

Original Foods Bakery Co started from a home operation cooking doughnuts for fish and chip shops 30 years ago.

Mr Honeybone said there was a strong transition arrangement in place with McCain, while next steps would also see Original Food’s team members start to support Sara Lee in the market.

“It’s around transfer of products between the two companies,” he said.

“We will continue to focus on what has made Sara Lee successful … that’s the key to success.”

He said it was ideal that the products from each company complimented each other, with Sara Lee’s most popular product the sticky date pudding and Original Food’s signature product the cookie caramel slice.