Food Business News - June 7, 2011 - (Page 45)

We handle Campbell Soup focusing on all your volume sales, brand building The company’s income climbs 11% in quarter ingredient behind increased marketing efforts needs The U.S. Soup, Sauces and Beverages segment had earnings of $193 million, down 10% from $214 million during the same quarter of the previous year. Sales for the segment were $778 million, down 8% from $848 million during the same quarter of the previous year. “We are executing a different secondhalf plan in U.S. Soup,” said Ms. Morrison in a conference call with financial analysts on May 23. “Our new management team has set in motion the plans we described to you in the second quarter. We have sharpened our focus on profitable volume. “This quarter we began shifting our marketing investments to more brandbuilding initiatives, such as our portfolio advertising campaign. We have increased our soup advertising with Over 4,000 SKU’s Conventional Natural & Organic Gluten Free CAMDEN N J — With growth i it snack, th in its k CAMDEN, N.J. food service and international businesses offsetting a decline in its U.S. soup, sauces and beverages segment, Campbell Soup Co. posted an 11% increase in earnings during the third quarter. For the quarter ended May 1, the company had earnings of $187 million, equal to 58c per share on the common stock, which compared with income of $168 million, or 49c per share, during the same quarter of the previous year. Sales for the quarter were $1,813 million, up 1% from $1,802 million during the same quarter of the previous year. “This quarter we reported a modest increase in sales and EBIT and a significant improvement in earningsper-share growth, with three of our four reporting segments contributing to this performance,” said Denise Morrison, chief operating officer. “While we are encouraged by our progress, we are not satisfied with this performance and clearly have more work to do. “After heavy discounting in U.S. soup during the first half, we began shifting our marketing investments in the third quarter toward brand building initiatives. Over time we anticipate that these efforts, combined with accelerated and targeted innovation, will improve price realization and strengthen brand equity. Sales of our beverage products softened this quarter compared to very strong results a year ago. We have a pipeline of healthy beverage innovations to build on our track record of growth. In Baking and Snacking, our second-largest segment, we continued to deliver strong performance with doubledigit sales increases and strong bottomline results this quarter.” The soup category T is being shopped be differently than in former years. — Denise Morrison, chief operating officer G R Ps G.R.P.s up by double digits and we are digits, highlighting the positive benefits of soup. “We have also increased price realization. We have raised promoted prices and are in the process of implementing a list price increase in U.S. soup to offset cost inflation. And we have innovations that are poised to ship in the summer.” Ms. Morrison also noted that consumer shopping patterns for soup are shifting. “The soup category is being shopped differently than in former years,” she said. “We definitely have evidence that stock-up trips are down; however, soup continues to be one of the most pervasive food items in the consumer’s basket. “We just saw a recent report from (SymphonyIRI) which talked about the top categories that build store traffic and soup is definitely in those top categories. We have also not seen a difference in the amount of inventory of soup in the consumer’s pantry, but the way they National Logistics & Warehousing 800-650-8678 June 7, 2011 FOODBUSINESS NEWS ® 45

Table of Contents for the Digital Edition of Food Business News - June 7, 2011

Food Business News - June 7, 2011
House bill cuts food safety funding
Enhancing water’s value
Wet weather muddies corn outlook
Web Contents
Editorial - Quest for ‘whole truth’ on food prices in France
MyPlate steps up in simple fashion
Breaking down MyPlate by food groups
Lawmakers look to halt sale of Lazy Cakes
McCormick to enter joint venture in India
Cal Pacifi c acquires SunOpta frozen fruit assets
Cargill Kitchen Solutions expanding in Iowa
F.M.I. hires new v.p. of food safety programs
Sealed Air to acquire Diversey for $4.3 billion
AdvancePierre Foods buys Barber Foods
Cargill acquires German chocolate business
Calavo to buy Renaissance Food Group
U.S. Foodservice acquires Great Western Meats
Clear sailing for Hain
Seneca Foods earnings down sharply in 2011
April red meat production down 4% from year ago
Sbarro now exploring alternatives to bankruptcy plan
Sherman Miller promoted to c.o.o. at Cal-Maine Foods
Nestle Health Science to acquire pharmaceutical maker
Emerging markets propel Heinz’s fi scal 2011 earnings
U.S.D.A. lowers cooking temp for some meat cuts
Campbell Soup focusing on volume sales, brand building
Buyout fi rm to acquire California Pizza Kitchen
Sanderson Farms suffers second-quarter loss
Wet weather muddies corn outlook
House bill cuts food safety funding
House panel seeks reduction in W.I.C. funding in fiscal 2012
Seeking middle market opportunities
Clear and concise
Ingredient solutions help keep it simple
Identifying natural partners for stevia
$tevia $upplier$ $eek profi t$ through international growth
Brain health for baby boomers
Bottled water volume, market share grew in 2010
Study recommends children should avoid energy, sports drinks
V8 introduces energy beverages
Smucker, Starbucks raising coffee prices
Nestle launches Aguas Frescas bottled beverage
Jamba introduces coconut water-based beverages
Enhancing water’s value
Gluten-free grains momentum
Balance Bar adds Café line
Pasta Prima launches two ravioli lines
Land O’Frost debuts Wrap Kit
Franz introduces artisan bread
Kraft launches Newtons Fruit Thins
Farley’s & Sathers adds ‘Splashers’
Häagen-Dazs introduces 2011 flavors
Mars updates Kudos granola bar line
Lifting of Russian export ban pressures world wheat market
Ingredient Markets
Packaging formats focus on convenience
Technology enables ultrasonic sealing
Ingredient’s small size aids in salt reduction
AKFP now offers arrowroot starch, pea starch
Tate & Lyle to resume U.S. sucralose production
Non-dairy ingredients achieve pareve certifi cation
Ad Index
Food Business in the News

Food Business News - June 7, 2011