HSH: The Hillshire Brands Company: The Hillshire Brands Company Discusses Plans for Growth at CAGNY

  HSH: The Hillshire Brands Company: The Hillshire Brands Company Discusses
  Plans for Growth at CAGNY

UK Regulatory Announcement

Innovation, brand-building and cost management at center of company’s strategy

CHICAGO

The Hillshire Brands Company (NYSE: HSH) presented today at the Consumer
Analyst Group of New York’s (CAGNY) annual conference. Sean Connolly,
president and chief executive officer and Maria Henry, chief financial officer
shared the company’s four core strategies for growth:

  *Strengthen the core brands with increased investment behind improved
    advertising, upgrades to product quality and packaging, and category
    management
  *Extend trademarks into adjacent categories with new product innovations
  *Drive greater cost efficiencies in supply chain, trade spend, and through
    shift in corporate culture
  *Acquire on-trend businesses that align with strategic vision and create
    shareholder value

“It is an exciting time for Hillshire Brands. We remain focused on creating
long-term shareholder value by strengthening our strong brands with leading
innovation and marketing support,” said Connolly. “Equally, we continue to
advance our cost efficiency programs as fuel for growth.”

“Overall, while it is still early days, we are quite encouraged by the
progress we see in the business and within our company culture,” Connolly
added.

The company’s core brands – Jimmy Dean, Ball Park, Hillshire Farm, Aidells,
Gallo and Sara Lee – are leaders in their respective categories. To support
these brands, the company plans to ramp up innovation, sharpen marketing
positioning and increase MAP investment to five percent of revenues by fiscal
2015.

In addition, the company has plans to create a sustainable innovation
pipeline, streamline time to market and reinvigorate consumer insights. The
presentation highlighted numerous upgrades to product quality and packaging,
new line extensions and adjacent innovations.

About The Hillshire Brands Company

The Hillshire Brands Company (NYSE: HSH) is a leader in meat-centric food
solutions for the retail and foodservice markets. The company generates
approximately $4 billion in annual sales and has approximately 9,500
employees. Hillshire Brands’ portfolio includes iconic brands such as Jimmy
Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef
Pierre pies, as well as artisanal brands Aidells and Gallo Salame.

Forward-Looking Statements

This release contains forward-looking statements regarding Hillshire Brands’
business prospects and future financial results and metrics. Forward-looking
statements are typically preceded by terms such as “will,” “plans,”
“anticipates,” “intends,” “expects,” “likely” or “believes” and other similar
terms. These forward-looking statements are based on currently available
competitive, financial and economic data and management’s views and
assumptions regarding future events and are inherently uncertain.

Investors must recognize that actual results may differ from those expressed
or implied in the forward-looking statements, and the company wishes to
caution readers not to place undue reliance on any forward-looking statements.
Among the factors that could cause Hillshire Brands’ actual results to differ
from such forward-looking statements are those described under Item 1A, Risk
Factors, in Hillshire Brands’ most recent Annual Report on Form 10-K, as well
as factors relating to:

  *Hillshire Brands’ spin-off of its international coffee and tea business in
    June 2012, including (i) Hillshire Brands’ ability to generate the
    anticipated benefits from the spin-off; (ii) the transition of leadership
    to a new senior management team and the departure of key personnel with
    historical knowledge; and (iii) potential tax liabilities and other
    indemnification obligations;
  *The consumer marketplace, such as (i) intense competition, including
    advertising, promotional and price competition; (ii) changes in consumer
    behavior due to economic conditions, such as a shift in consumer demand
    toward private label; (iii) fluctuations in raw material costs, Hillshire
    Brands’ ability to increase or maintain product prices in response to cost
    fluctuations and the impact on profitability; (iv) the impact of various
    food safety issues and regulations on sales and profitability of Hillshire
    Brands’ products; and (v) inherent risks in the marketplace associated
    with product innovations, including uncertainties about trade and consumer
    acceptance;
  *Hillshire Brands’ relationship with its customers, such as (i) a
    significant change in Hillshire Brands’ business with any of its major
    customers, such as Wal-Mart, its largest customer; and (ii) credit and
    other business risks associated with customers operating in a highly
    competitive retail environment; and
  *Other factors, such as (i) Hillshire Brands’ ability to generate margin
    improvement through cost reduction and productivity improvement
    initiatives; (ii) Hillshire Brands’ credit ratings, the impact of
    Hillshire Brands’ capital plans on such credit ratings and the impact
    these ratings and changes in these ratings may have on Hillshire Brands’
    cost to borrow funds and access to capital/debt markets; and (iii) the
    settlement of a number of ongoing reviews of Hillshire Brands’ income tax
    filing positions and inherent uncertainties related to the interpretation
    of tax regulations in the jurisdictions in which Hillshire Brands
    transacts or has transacted business.

The Hillshire Brands Company
Media:
Mike Cummins, +1.312.614.8529
or
Analysts:
Melissa Napier, +1.312.614.8739

Contact:

The Hillshire Brands Company
 
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