Nestlé sells U.S. coffee operations to Sara Lee Corp.

(AP) -- Swiss food and drinks group Nestlé said Monday it has sold three of its U.S. coffee brands and a production plant to Sara Lee Corp. of the United States.

(AP) — Swiss food and drinks group Nestlé said Monday it has sold three of its U.S. coffee brands and a production plant to Sara Lee Corp. of the United States.

Nestlé said it sold Hills Bros., MJB and Chase and Sanborn for an undisclosed sum. Its other major coffee U.S. coffee brand, Taster’s Choice, will remain in Nestle’s brand portfolio.

Nestlé also sold its Suffolk, Virginia roast and ground coffee plant as part of the deal. “Sara Lee will also offer to hire the approximately 210 employees at the Suffolk facility in the same capacity or in comparable job,” it said in a statement.

The company said it sold the three brands “in order to focus its U.S. coffee strategy on the new premium line of Nescafe.”

Nestlé chose to put its American ground and roasted coffee operations up for sale because it intends to focus on coffee-based beverages. In an attempt to stimulate flagging instant coffee sales, Nestlé is relaunching its Nescafe brand in the United States, introducing new varieties and flavors.

It announced plans to sell its U.S. roast and ground coffee operations on November 24.

Last year Nestlé’s global coffee sales amounted to approximately SFr10 billion($6.41 billion), the bulk of that coming from instant coffee. The operating margin for instant coffee was 25 percent, and 12 percent for roasted coffee.