Sara Lee sees slowdown in food services business

Jul 23, 2008 (Datamonitor via COMTEX) -- SLE | Quote | Chart | News | PowerRating -- As the US economy witnesses a downturn and financial restraints force consumers to dine more at home than outside, Sara Lee has said that its food services business is going through difficult times, reported the Financial Times.

CJ Fraleigh, COO for Sara Lee's US arm, said: "We have seen a tick down in volume in that side of the business because we have seen people eating out of home less. In the last few months (it has become more pronounced) we have seen a slowdown in that business."

The company's food services business provides slices of apple pie and cups of coffee to diners and restaurants throughout the US. The food services business is trying to offer more appealing products to diners and eateries. However, the company is not expecting any major benefits from this move, Mr Fraleigh added.

The executive further added that it is getting increasingly difficult for the company to handle the rising commodity costs in its packaged meat and bakery retail categories.

http://www.datamonitor.com

Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon

Morning Coffee with TradingMarkets -- Free Newsletter

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index