Milling & Baking News Corporate Profiles - November 2013 - (Page 82)

Company Overview Campbell Soup Co. Core innovation and category expansion set stage for growth S trategic acquisitions and product launches over the past year reflect the Campbell Soup Co.'s dual mandate of strengthening its core portfolio through innovation and expanding into higher-growth categories and geographies. Efforts this year have included an overhaul of the U.S. soup business, the introduction of a dinner sauce platform and the purchases of Danish snack maker Kelsen Group A/S in August and Plum Organics baby food in June. The two additions followed last August's $1.55 billion purchase of Bolthouse Farms, which delivered strong results in premium beverages, carrots and salad dressings during the year. While acquisition costs weighed on the Camden, N.J.-based company's fiscal 2013 earnings, the additions of Plum Organics and Kelsen are predicted to contribute approximately $300 million in sales during fiscal 2014. Net income in the year ended July 28 was $458 million, equal to $1.46 per share on the common stock, down sharply from $774 million, or $2.43 per share, in fiscal 2012. Excluding items impacting comparability in both years, though, adjusted net earnings increased 7% to $836 million. Net sales for the full year totaled $8,052 million, up 12% from $7,175 million in fiscal 2012. "Consistent with our strategy, we are investing in core brands like Campbell's, Pepperidge Farm, Goldfish, Arnott's, Prego, Swanson, and V8 and new businesses in faster growing spaces like Bolthouse Farms, Plum Organics and Kelsen," said Denise Morrison, chief executive officer, in an Aug. 29 earnings conference call. "All of the actions that we have taken to strengthen our core business and expand into faster growing spaces are reshaping our brand portfolio and shifting our center of gravity for a greater growth trajectory in the long term." As part of efforts to retain market share in soups, Campbell eliminated its 100% Natural line and launched a new Homestyle line. Campbell also has plans to grow its condensed soup business in fiscal 2014 with new varieties in its Healthy Request line and additional soups designed to appeal to children. Other highlights in consumer-focused innovation this year occurred across the entire Pepperidge Farm portfolio of Chief executive officer - Top brands - 2013 fiscal year global sales - Denise Morrison 82 \ November 2013 sweets and snacks, including ethnicinspired flavors of Goldfish snacks aimed at Hispanic consumers and Goldfish Puffs targeting teenagers. The company said its "breakthrough concept" with "a high potential for reward" was its skillet sauces line, part of a broader dinner sauce segment that also will include slow-cooker sauces. Ms. Morrison said during a May 20 call with analysts that the dinner sauce platform will be "a major thrust for us in fiscal 2014." Meanwhile, the company remains challenged by its underperforming U.S. Beverages and North America Foodservice businesses, the latter of which was negatively impacted by the loss of a major restaurant customer and structural changes in the sector. Additionally, the company sold its European simple meals business in September to London-based private equity firm CVC Capital Partners (CVC) for €400 million ($542 million). The agreement includes Campbell's national brands of soups, sauces and simple meals, as well as four plants. The transaction was expected to close in the fourth quarter of calendar 2013. CP $8.1 billion Campbell's Pepperidge Farm Pace Prego Swanson Bolthouse Farms V8 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013