CHRISTCHURCH, NEW ZEALAND – The iconic dessert and baked goods company Sara Lee, a longtime McCain Foods brand in Australia and New Zealand, has been acquired by the investment house South Island Office.
The purchase, a part of a partial management buyout with Sara Lee Australia’s existing managing director, was announced from the investment group earlier today. The group also recently purchased the growing brand Original Foods Baking Co. and plans to become a leader in the region’s frozen dessert and bakery sectors through combining the two businesses. South Island Office said the combined product ranges and distribution channels of Sara Lee and Original Foods are highly complementary.
Sara Lee’s existing leadership, including Mark Mackaness, who was appointed as general manager in 2019 by McCain, will stay with the company. Mackaness was selected for the role to build Sara Lee Australia as a standalone business, making the transition smooth as the acquisition is finalized. Mackaness has invested in the business and will be an equity partner and group CEO. He is confident the two companies will grow alongside each other.
“Sara Lee is almost entirely complementary to Original Foods Baking Co.,” 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 favorite in Australia and New Zealand for 50 years. This partnership allows both businesses to gain exposure to new channels and markets as we have different strengths in retail and foodservice in Australia and New Zealand.”
"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 favorite in Australia and New Zealand for 50 years," Mackaness said. "This partnership allows both businesses to gain exposure to new channels and markets as we have different strengths in retail and foodservice in Australia and New Zealand.”
Sara Lee’s 50th year in business was this past June and Original Foods’ 30th year was in the same month, making the teams a natural fit, Mackaness also noted.
Both Original Foods Baking Co. and Sara Lee also pride themselves on using local ingredients. Sara Lee still sources 90% of its ingredients locally, including at the plant in Lisarow, New South Wales, where the company sources oranges for the Sara Lee orange cake from a local orchard.
Mackaness said that the terms of the sale protect all jobs held by the more than 200 current Lisarow-based employees.
“The future is bright for Sara Lee,” Mackaness said. “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.”
