The 'perfect storm' that caused Sara Lee's collapse in Australia

The 'perfect storm' that caused Sara Lee's collapse in Australia

The collapse of beloved frozen desserts company Sara Lee may be down to younger consumers looking for healthier treats, an economist has revealed.

Many Australians were shocked on Wednesday to learn the company, which was established in Australia in 1971 on the NSW Central Coast, had gone into voluntary administration.

A desperate hunt has been launched to find a new buyer to rescue Sara Lee from the brink of demise, with 200 jobs at risk.

Behavioural and applied economist, Dr Meg Elkins, from Victoria's RMIT University, said the current state of the business was likely a result of a 'perfect storm'.

Many Australians were shocked on Wednesday to learn Sara Lee, which was established in Australia in 1971 on the NSW Central Coast , had gone into voluntary administration

'The cost of products has increased in the past few years and it's a year of inflation so people are cutting back,' she told Daily Mail Australia.

Sara Lee increased prices across the board in May this year.

Another potential downfall of Sara Lee may have been the company not evolving with the times, with younger generations becoming increasingly more health-conscience.

Behavioural and applied economist, Dr Meg Elkins, from Victoria's RMIT University, said the business' downfall was likely a result of a 'perfect storm'

'Its challenge is how does it appeal to a younger audience?' Dr Elkins said.

'We're witnessing young consumers move towards healthier options and Sara Lee is very much a dessert brand.'

The addition of major supermarkets like Woolworths and Coles selling their own frozen desserts at low prices was also another hurdle Sara Lee would've had to jump. 

'When inflation bites, you look for cheaper alternatives,' Dr Elkins said. 

'Eventually, we pay the price ... and we lose these very iconic brands.

'The cost of producing these goods has increased and we've also got increased competitiveness from other brands, she explained.

But one thing that could work in Sara Lee's favour is its popularity.

'When brands like this collapse there's a surge in reminiscing,' Dr Elkins said, with many Aussies sharing they've since rushed to their nearest store to pick up a Sara Lee dessert.

'They could tap into that reminiscing element but they need to recapture young customers with healthier desserts.'

Meanwhile, Sunrise host Nat Barr said Aussies have themselves to blame for the company's collapse.

'A lot of us haven't bought one for while. Let's save Sara Lee. It's all our faults.'

Vaughan Strawbridge, Kathryn Evans and Joseph Hansell of FTI Consulting have been appointed as voluntary administrators for Sara Lee.

Another potential downfall of Sara Lee may have been the company not evolving with the times, with younger generations becoming increasingly more health-conscience

'The Australian Sara Lee business has a long history of producing desserts including frozen cheesecakes, pies, crumbles and ice cream, using quality, authentic ingredients,' the administrators said.

'The Australian-based manufacturing business trades as Sara Lee under license from the global owner of the trademark, with rights to operate in Australia, New Zealand, South East Asia and the Middle East. 

'The Australian-based manufacturing business trades as Sara Lee under license from the global owner of the trademark, with rights to operate in Australia, New Zealand, South East Asia and the Middle East.

'The appointment to the company is intended to seek a restructuring and sale of the Sara Lee business, while continuing operations.'

Mr Strawbridge believes there will be great interest from various firms in taking over the company, which once had TV star Sophie Monk as its ambassador.

'We are working with Sara Lee's management team and staff to continue operations while we secure the future of the business,' he said.

'We are immediately commencing a process to sell or restructure the business and continue its long history of manufacturing in Australia.

'We expect a lot of interest in the business and will work with those parties and stakeholders to achieve an outcome as soon as possible to secure the ongoing business and provide clarity to its loyal and committed staff and customers.'

The company, which employs about 200 people, was established in Lisarow on the NSW Central Coast in 1971.

Its website says its 'bakers and pastry chefs create delicious desserts and baked goods for Australians and New Zealanders every day, using traditional baker's flour, real eggs and fresh cream'.

The company was founded in Chicago, USA by Charles Lubin, who named his first bakery after his daughter, Sara Lee in the 1930s.