Meat + Poultry - September 2008 - 21

Sara Lee meat sales up
for fourth quarter, year
Driven by a favorable sales mix, price increases and higher unit volumes, Downers Grove, Ill.-based Sara Lee Corp.'s net sales for its North American Retail Meats
increased 6.4 percent to $643 million in the fourth quarter of ﬁscal 2008, as an 8.5
percent increase in retail meat sales was partially offset by a 19.4 percent decline in
non-retail commodity meat sales. Adjusted net sales also increased 6.4 percent.
Segment net sales for the full year increased 3.0 percent to $2.4 billion. Adjusted
net sales also increased 3.0 percent.
Operating segment income for North American Retail Meats was $48 million in
the fourth quarter, compared to $27 million in the year-ago period. The increase
was primarily the result of price increases, favorable sales mix, lower MAP spending and lower S.G.& A. costs. Fourth-quarter
operating segment income included charges
for impairments, exit activities and transformation costs of $33 million compared to $14
million in the prior-year period. Adjusted
operating segment income was $81 million in the ﬁscal 2008 fourth quarter, compared to $41 million in the prior year's period.
North American Retail Meats operating segment income for the full year was $175
million, compared to $94 million last year. Adjusted operating segment income was
$208 million, compared to $206 million in ﬁscal 2007.
Unit volumes increased 0.4 percent in the fourth quarter, consisting of an increase of 3.8% for retail meats and signiﬁcantly lower unit volumes for non-retail
commodity meats. During the fourth quarter, each of the major retail meats brands
- Jimmy Dean, Hillshire Farm, Ball Park and Sara Lee - increased market share according to Information Resources Inc. share data (12 weeks ending June 29, 2008).
Ball Park hotdogs started the summer grilling season strong with a share increase
of 1.2 points versus last year to reach 20.9 percent according to IRI. For the full year,
unit volumes for the segment increased 2.1 percent.

Wal-Mart to begin selling RMH Foods'
Milano Italian Grille entrées
RMH Foods LLC, a division of Smithﬁeld, Va.-based Smithﬁeld Foods, recently
signed an agreement to put its newest line of refrigerated entrées in Wal-Mart stores
throughout the U.S. Launching on Sept. 8, the six-item Milano Italian Grille entrée
line includes Chicken Milano, Spaghetti and Meatballs, Lasagna, Fettuccini Alfredo,
Chicken Marsala and Chicken Parmesan.
"We are excited to continue to bring innovation to the refrigerated entrée category
with the launch of Milano's, which represents a fresh and casual culinary offering,"
according to Jon Rocke, president of RMH Foods. "These restaurant-inspired entrées
give the consumer a great option from the frozen case and with the cost of eating
out offer an alternative to stay home yet enjoy a great Italian dinner.
"The Smithﬁeld Paula Deen entrées and sides offer a new twist on comfort food
bringing her great Southern-Style cooking to the traditional favorites, " Rocke said.
"Both of these offerings are further steps to 'raise the bar' and provide great food
in a fresh and convenient format for the consumer."
In 2001, Smithﬁeld, Va.-based Smithﬁeld Foods acquired refrigerated heat-andeat entrée pioneer RMH (Rocke's Meat Haus) Foods, Morton, Ill. while RMH was
in the process of building a new entrée processing plant on the west side of town.
The following year, the new 60,000 sq. ft. facility opened for business.
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