• Business Week, Monday, March 30, 2009 11:45 AM

For the past four years, Sara Lee has been busy transforming itself into a more profitable, cohesive, and efficient enterprise -- and several investment pros find the makeover quite enticing, reports Gene Marcial, who writes the "Inside Wall Street" column for Business Week. In making a clear investment in innovation and marketing, "Sara Lee has been executing well," says analyst Timothy S. Ramey of investment firm D.A. Davidson.

The company has been selling or spinning off product lines that are less profitable, and committing more attention to brands that it thinks have the best potential to grow faster over the long term. It also aims to introduce new products.

With demand for whole-grain products on the rise, Sara Lee has introduced flour-blend breakfast items including "Soft & Smooth" whole-grain white bread and English muffins. Other new items are Hillshire Farm Entrée Salads, Senseo cappuccino, and more Soft & Smooth bakery products. It is also launching Ultra Premium lunch meat, Caffiato iced coffee and tea, and Toastworks toasted sandwich.

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