Milling & Baking News - September 8, 2020 - 17

Financial Results

Farmhouse Breakfast Bread highlights
innovation efforts at Pepperidge
but has been scaled up in recent months.
He described the bread as ideal for stayat-home or on-the-go breakfast consumption. Farmhouse Breakfast Bread
is available at retailers nationwide at
a suggested retail price of $3.99 for a
16-oz loaf.
The Farmhouse Breakfast Bread line
joins Campbell Soup's Pepperidge
Swirl line, which the company also
markets as breakfast bread. Pepperidge
Swirl bread also is available in three varieties: cinnamon, raisin cinnamon and
brown sugar cinnamon.
Beyond the bread aisle, Campbell Soup
significantly increased its marketing investment in snacks in the fourth quarter,
Mr. Clouse said.
"Our investment reflects a combination of live TV, online and streaming
video, along with key media sponsorships," he said. "I'm also very proud of
our snacks team for continuing to drive
innovation, which is so critical in the
snacking category."
New product launches include Snyder's of Hanover Rounds and Twisted
Pretzel Sticks as well as Late July organic
potato chips.
"These products are demonstrating
positive signs on repeat and steady velocity growth," Mr. Clouse said.
The new products contributed to stronger income and sales within Campbell's
Snacks division in the full year ended
Aug. 2. Operating income in the Snacks
division totaled $551 million in the year
ended Aug. 2, up 6% from fiscal 2019.
Meanwhile, net sales in the division increased 5% to $4.05 billion.
Fourth-quarter performance also was
strong, Mr. Clouse said. Net sales increased 11% during the quarter while
operating profit held flat, which reflected higher sales offset by COVID-19
costs and sustained increases in marketing investment.
"We see this margin dynamic as shortterm in nature as we navigate higher
COVID-related costs," Mr. Clouse said.
"As the year progresses, we expect to
remain on our planned path of margin
expansion into fiscal 2021, consistent
with the trends that we saw in full year
margin expansion in fiscal 2020."
Mr. Clouse said Campbell Soup experienced some limited share challenges
in snacks, due primarily to supply constraints.
"On the Snacks business, our net sales
number lagged consumption, primarily
bakingbusiness.com / world-grain.com

due to lower growth in our non-measured
channels, specifically in convenience store
and vending, as well as some retail inventory reduction," he said. "We have already

CAMPBELL SOUP CO.

Continued from Page 1

taken action. For example ... on Goldfish,
we have added nearly 20% more capacity
to our supply as we head into back-toschool. We also have additional supply

coming online for our Cape Cod and Kettle brands in the first half of fiscal 2021."
Elaborating on some of the supply
chain issues during a follow-up call
with securities analysts on Sept. 3, Mr.
Clouse said Campbell Soup's Kettle and
Cape Cod potato chip businesses have
faced the most pressure, with the Lance
sandwich cracker business also feeling
some pressure.
He said the company is in "great
shape" in terms of supply for Goldfish,
and recently opened a new production
line for the brand's products at its Willard, Ohio, plant.
"A little bit of what we're navigating
on Goldfish is trying to figure out again
that mix as we go through back-to-school
on whether it's bulk or individual packs,"
he said. "And we continue to see demand
remaining very, very high on the bulk
side. But I think, generally speaking, we
feel good about that."
Overall, net income at Campbell Soup
in the year ended Aug. 2 totaled $1.63 billion, equal to $5.39 per share on the common stock, up sharply from $211 million,
or 70ยข per share, in fiscal 2019. Net sales
increased 7% to $8.69 billion from $8.11
billion a year ago. MBN

S O U R C E * B L E N D * I N N O VA T E
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& Baking News | 800.527.4104
September 8, 2020 / 17
B.C. Williams Bakery Service | BCW Food


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Milling & Baking News - September 8, 2020

Table of Contents for the Digital Edition of Milling & Baking News - September 8, 2020

Milling & Baking News - September 8, 2020 - 1
Milling & Baking News - September 8, 2020 - 1
Milling & Baking News - September 8, 2020 - 2
Milling & Baking News - September 8, 2020 - 3
Milling & Baking News - September 8, 2020 - 4
Milling & Baking News - September 8, 2020 - 5
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Milling & Baking News - September 8, 2020 - 7
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Milling & Baking News - September 8, 2020 - 10
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