Corporate Profiles - 2021 - 66

COMPANY OVERVIEW
Campbell Soup Co.
Plans product innovation to keep soup sales surging
C
onsumers eating at home due to pandemic-related
restrictions sped up Campbell
Soup Co.'s three-year turnaround, especially
in soup. Executives of the Camden, NJbased
company expect innovation, again especially
in soup, to keep sales elevated.
Three years ago, Campbell Soup Co. laid out
a long-term algorithm of increases of 1% to 2%
on the top line, 4% to 6% in EBIT and 7% to
9% in earnings per share. Mark A. Clouse, president
and chief executive officer, said at the virtual
Barclays Global Consumers Staples Conference
Sept. 9 that the company surpassed those
goals. He conceded COVID-19 had influence on
the strong results.
" But if we just kind of start with the numbers
over that period of time, we're pleased with the
progress that we've made, " he said. " So it's 3%
on the top line, 5% CAGRs for those three years,
5% on the EBIT and 14% on EPS. "
The fiscal year ended Aug. 1 failed to match
the results of the previous year when COVID-19
restrictions were more severe. Net sales decreased
11% to $1.87 billion, but when compared
to fiscal 2019, net sales increased 5%.
Sales of US Soup decreased 21% in the fourth
quarter of fiscal 2021 when compared to the
previous year's fourth quarter, which increased
52% when compared to the 2019 fourth quarter.
Ready-to-serve
21% on a two-year basis, led by Chunky, Slow
Kettle and Well Yes!
New products will debut under the Pacific,
Well Yes! and Campbell's soup brands in fiscal
2022.
" Our new items focus on new occasions and
relevant wellness trends, " Mr. Clouse said in a
Sept. 1 earnings call. " Expanding on the relaunch
of our better-for-you Well Yes! brand is the launch
of Well Yes! Power Bowls with five unique varieties
for both lunch and snack occasions. "
The Slow Kettle Crunch portfolio expanded
this year through four varieties of Campbell's
Red & White Crunch. Oat milk soups and creamy
plant-based protein broths launched in Pacific
Foods organic soup brand.
The Campbell's condensed soup portfolio was
being refreshed.
" We are contemporizing the brand to better
soup consumption grew
match our growing millennial consumer base
while improving the product and its shop-ability
as we continue to support our positioning as a
starting point for delicious meals, " Mr. Clouse
said.
For the fiscal year net sales slipped 2% in
both Meals & Beverages, which includes soup,
and Snacks.
During the year the Pepperidge Farm unit of
Campbell Soup Co. launched Goldfish Frank's
RedHot crackers and a Goldfish jalapeño popper
variety.
Campbell Soup Co. in 2021 sold Plum Organics,
an organic baby food and children's snack
brand, to Sun Maid Growers of California.
" The sale of the Plum Organics baby food
brand is part of our ongoing strategic process to
create even greater focus on driving growth in
the division's core categories of soup, sauces and
beverages, " said Chris Foley, president of Meals
& Beverages, when the deal was announced on
March 31.
Guidance for fiscal 2022 included core inflation
in the high-single-digit percentages. Campbell
Soup Co. expects to handle the inflationary
headwinds through positive net price realization,
supply chain productivity improvements and
cost-savings initiatives. CP
Chief executive officer -
Mark A. Clouse
Campbell Soup Co.
net earnings
(fiscal years ended in July)
Campbell Soup Co.
net sales
(fiscal years ended in July)
Campbell Soup share price
per share
$211
$1,628
$1,002
$8,107
$8,691
$8,476
$40
$43
$46
$49
$52
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66 \ October 2021
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