Sara Lee is ramping up its overseas coffee business with the addition of a single-cup coffee capsule that can be used in rival Nestle's Nespresso machines. The capsules will sell for up to 20% less than Nestle's and are expected to generate $3.5 billion in sales. "It would be hard to find a more important launch for Sara Lee than this new coffee," says analyst Tim Ramey. "Coffee is Sara Lee's ... most important growth franchise."

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