Highlights Innovative Partnerships, Pending
Acquisition
Campbell Soup Company (NYSE: CPB) today outlined its
strategies to drive growth in a rapidly-changing food landscape at
its annual investor day. Led by President and Chief Executive
Officer Denise Morrison, the company declared its goal to be the
leading health and well-being food company. Executives detailed
plans to strengthen Campbell’s core business and expand into
faster-growing spaces through four strategic imperatives:
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View the full release here:
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At its annual Investor Meeting, Campbell
outlined plans to build greater trust with consumers through real
food, transparency and sustainability; accelerate digital marketing
and e-commerce efforts; continue to diversify Campbell's portfolio
in fresh foods and health and well-being; and increase its presence
in the faster-growing snacking category. (Photo: Business Wire)
- Building greater trust with consumers
through real food, transparency and sustainability;
- Accelerating digital marketing and
e-commerce efforts;
- Continuing to diversify Campbell’s
portfolio in fresh foods and health and well-being; and
- Increasing its presence in the
faster-growing snacking category.
Morrison said, “In the last six years, we've made significant
progress activating our Purpose, 'Real Food that Matters for Life's
Moments,’ and transforming our portfolio toward faster-growing
spaces. Our intention has been to move Campbell in the direction of
health and well-being. We are committed to accelerating those
efforts and strive to be the leading health and well-being food
company because we recognize that real food and healthier food is
better for our consumers and better for our business.”
Today, Campbell has approximately $1 billion in annual net sales
from fresh products and its portfolio provides nearly 15 billion
servings of vegetables and more than 2.4 million tons of whole
grains to consumers annually. The company’s organic portfolio is in
the top 10 in the industry and growing at double digits.
In response to changing consumer needs around health and
well-being, Campbell has taken deliberate steps to reshape its
portfolio through internal innovation, changes to its recipes and a
series of acquisitions, including Bolthouse Farms, Plum Organics,
and Garden Fresh Gourmet, as well as the pending acquisition of
Pacific Foods, a leading producer of organic broth and soup.
Morrison said, “Campbell‘s goal to lead in health and well-being
is attainable, but we will need to redouble our efforts by
extending the real food credentials of our current brands and
adding more brands that resonate with consumers; improving our rate
of innovation; and increasing our distribution capabilities in new
channels. Some of this we can build ourselves, but in other
instances we will have to leverage external development.”
Ed Carolan, President – Campbell Fresh, discussed the division's
portfolio role to accelerate CPG sales growth and expand into new
categories, as he outlined plans to return the division to growth
through a combination of increased beverage capacity, improved
customer service levels, more effective agricultural strategies and
higher levels of marketing, with continued focus on innovation and
quality standards.
Building Trust Through Real Food, Transparency and
Sustainability
Campbell unveiled an agreement with The Sage Project to partner
on digital disclosure of ingredients using Sage’s food data
platform. Combining technology with design, Sage is creating online
food labels for the digital world, making information about
calories, nutrition, ingredients and attributes open, accessible
and easy for consumers to understand. Campbell’s Well Yes! soup
varieties are the first products to bring The Sage Project’s SKU
level transparency to Campbell’s platforms.
These efforts complement Campbell's commitment to its real food
philosophy with an ongoing investment of $50 million over the next
several years in the core business to evolve its products to more
closely align with consumer wants and needs.
Mark Alexander, President – Americas Simple Meals and Beverages,
outlined steps to reinvent the center store with the division’s
focus on making real food available to more people. Campbell plans
to complete the transition of all soups in the U.S. and Canada to
non-BPA lined cans for the upcoming soup season and expects to
convert to chicken with no antibiotics for all soups in its
portfolio by the end of the calendar year.
Accelerating Digital Marketing and E-Commerce Efforts
Alexander also highlighted Campbell's plans to accelerate the
company’s digital and e-commerce capabilities by forming an
e-commerce unit in North America. Campbell has a goal of generating
$300 million in e-commerce sales over the next five years.
Alexander said, "We're investing in digital and e-commerce
across the enterprise with a goal of building industry-leading
capabilities and relationships that will drive innovation in this
space.”
To support these efforts, the company announced it has hired
Shakeel Farooque as Vice President and Head of Digital and
E-Commerce to lead the unit. Farooque's background is in retail,
where he leveraged data to understand consumer behaviors and build
omni-channel capabilities for Kohl’s, eBay and Amazon, Inc. The
company also outlined its plans to partner with leading e-commerce
companies, such as the recently announced $10 million investment
and strategic partnership with online meal kit company Chef’d, and
steps it is taking to create a more flexible distribution system to
serve e-commerce channels.
Broadening the Lens of the Faster-Growing Snacking
Category
Luca Mignini, President - Global Biscuits and Snacks,
highlighted Campbell's opportunities in the increasingly attractive
area of snacking, as 90 percent of consumers snack multiple times a
day and more than 50 percent of all U.S. eating occasions are
snacks.1
Mignini outlined the division’s growth plans in fiscal 2018 to
expand the division’s footprint: drive the snacking portfolio in
U.S. Biscuit and Bakery and Australia; and pursue expansion in
developing markets.
Carlos Abrams-Rivera, President - U.S. Biscuits and Bakery,
discussed Campbell’s opportunity to leverage brands across the
Campbell portfolio to penetrate snacking occasions beyond its core
cracker and biscuit business, which includes icon brands Goldfish
crackers, Milano cookies, Kelsen biscuits and Arnott's baked
snacks. He outlined Campbell’s goal to make snacks with real food
ingredients accessible to all consumers and an enterprise-wide
snacking strategy designed to accelerate the company’s efforts.
Campbell anticipates adding approximately $200 million in sales
across its three divisions over the next five years by broadening
its snacking business beyond cookies and baked snacks to include
soup, mini meals and fresh snacks, with a focus on mindful kids
snacking.
A replay of the presentations, along with accompanying slides,
will be available at investor.campbellsoupcompany.com after the
completion of the event.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our Purpose: “Real
food that matters for life’s moments.” We make a range of
high-quality soups and simple meals, beverages, snacks and packaged
fresh foods. For generations, people have trusted Campbell to
provide authentic, flavorful and readily available foods and
beverages that connect them to each other, to warm memories and to
what’s important today. Led by our iconic Campbell’s brand, our
portfolio includes Pepperidge Farm, Bolthouse Farms, Arnott’s, V8,
Swanson, Pace, Prego, Plum, Royal Dansk, Kjeldsens and Garden Fresh
Gourmet. Founded in 1869, Campbell has a heritage of giving back
and acting as a good steward of the planet’s natural resources. The
company is a member of the Standard & Poor’s 500 and the Dow
Jones Sustainability Indexes. For more information, visit
www.campbellsoupcompany.com or follow company news on Twitter via
@CampbellSoupCo. To learn more about how we make our food and the
choices behind the ingredients we use, visit
www.whatsinmyfood.com.
Forward-Looking Statements
This release contains “forward-looking statements” that reflect
the company’s current expectations about the impact of its future
plans and performance on the company’s business or financial
results. These forward-looking statements rely on a number of
assumptions and estimates that could be inaccurate and which are
subject to risks and uncertainties. The factors that could cause
the company’s actual results to vary materially from those
anticipated or expressed in any forward-looking statement include
(1) the company’s ability to manage changes to its organizational
structure and/or business processes; (2) the company’s ability to
realize projected cost savings and benefits from its efficiency
programs; (3) the impact of strong competitive responses to the
company’s efforts to leverage its brand power in the market; (4)
the impact of changes in consumer demand for the company’s products
and favorable perception of the company’s brands; (5) the impact of
product quality and safety issues, including recalls and product
liabilities; (6) the risks associated with trade and consumer
acceptance of the company’s initiatives, including its trade and
promotional programs; (7) the impact of a changing customer
landscape, with value and e-commerce retailers expanding their
market presence, while certain of the company’s key customers
continue to increase their significance to the company’s business;
(8) the impact of changing inventory management practices by
certain of the company’s key customers; (9) the impact of
disruptions to the company’s supply chain, including fluctuations
in the supply of and inflation in energy and raw and packaging
materials cost; (10) the impact of non-U.S. operations, including
trade restrictions, public corruption and compliance with foreign
laws and regulations; (11) the ability to complete and to realize
the projected benefits of acquisitions, divestitures and other
business portfolio changes; (12) the uncertainties of litigation
and regulatory actions against the company; (13) the possible
disruption to the independent contractor distribution models used
by certain of the company’s businesses, including as a result of
litigation or regulatory actions affecting their independent
contractor classification; (14) the company’s ability to protect
its intellectual property rights; (15) the impact of an impairment
to goodwill or other intangible assets; (16) the impact of
increased liabilities and costs related to the company’s defined
benefit pension plans; (17) the impact of a material failure in or
breach of the company’s information technology systems; (18) the
company’s ability to attract and retain key talent; (19) the impact
of changes in currency exchange rates, tax rates, interest rates,
debt and equity markets, inflation rates, economic conditions, law,
regulation and other external factors; (20) the impact of
unforeseen business disruptions in one or more of the company’s
markets due to political instability, civil disobedience,
terrorism, armed hostilities, natural disasters or other
calamities; and (21) other factors described in the company’s most
recent Form 10-K and subsequent Securities and Exchange Commission
filings. The company disclaims any obligation or intent to update
the forward-looking statements in order to reflect events or
circumstances after the date of this release.
1 Hartman Group, 2016. Hartman Group, 2014.
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version on businesswire.com: http://www.businesswire.com/news/home/20170719006001/en/
Campbell Soup CompanyINVESTOR
CONTACT:Ken Gosnell,
856-342-6081Ken_Gosnell@campbellsoup.comorMEDIA CONTACT:Thomas Hushen,
856-342-5227Thomas_Hushen@campbellsoup.com
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