Sara Lee Corp. has announced the sale of a majority of its North American foodservice coffee and tea operations to The J.M. Smucker Company for $350 million. The two companies will also establish a long-term partnership to collaborate on liquid coffee innovation.

The acquisition includes Sara Lee's market-leading liquid coffee concentrate business sold under the licensed Douwe Egberts brand, along with a variety of roast and ground coffee, cappuccino, tea, and cocoa products, sold through foodservice channels in North America.

“This transaction further strengthens our position as a leading North American coffee company,” says Smucker CEO Richard Smucker. “The addition of liquid coffee concentrate to the Smucker portfolio aligns with our desire to compete in all forms of coffee, adding to our roast and ground, single serve, instant, and ready-to-drink platforms. The innovation partnership further allows us to collaborate on new technologies in the liquid coffee category for the foodservice market.”.