“In a little more than one year, Campbell has completed three acquisitions, one major divestiture, and two commercial agreements — more activity than in the previous 10 years combined,” said Andrew Lazar of Barclays Capital as he introduced Campbell President and CEO Denise Morrison at this week’s Consumer Analyst Group of New York conference in Boca Raton, Florida.
Morrison discussed the Company’s growth strategies and performance Wednesday morning, with a clear message: We are reshaping Campbell for “a better, more profitable growth trajectory” in a changing consumer and economic environment.
CAGNY’s annual conference brings together companies in the consumer goods industry to give investors an overview of their companies’ growth strategies and what to look forward to in the coming year.
Denise told the more than 600 analysts in attendance, “My central objective is to review our strategic vision for Campbell, and to explain why we believe so strongly in it – why we are confident that it is the right course for our company and our shareholders.”
The Campbell strategic framework translates into what we refer to as a “dual mandate,” under which we aspire:
- To strengthen our core business and assure its long-term vitality as a consistent and powerful growth engine, and
- To deliver consistent, carefully considered, and successful expansion into higher-growth spaces, achieving, over time, a shift in our company’s “center of gravity.”
To drive future growth and connect with the changing consumer landscape, Morrison outlined four bold moves that Campbell is making:
1. Breakthrough Innovation. It is clear that we must continue to fuel our innovation pipeline to invigorate the growth of our business, with an emphasis on developing disruptive innovation that will delight consumers.
Two platforms Morrison described were Campbell’s Dinner Sauces and premium soups. With their provocative taste profiles and appealing packaging, both premium soups and Campbell’s Dinner Sauces have attracted younger consumers to the category.
2. Expanded Availability. This growth platform is important to ensure that Campbell products are available to consumers when and where they want them.
Campbell has transitioned to a new national distributor network for single-serve beverages. We started shipping in January to our new distributors, who are energized and focused on driving growth. Over time, we see immediate consumption channels, such as convenience stores, as a significant opportunity for expansion for both V8 and Bolthouse Farms beverages.
3. Packaged Fresh. Consumers’ interest in fresh foods and healthier lifestyles has fueled Campbell’s move into this $12 billion category. Our expansion in this fast-growing space is enabled by the combination of our existing expertise and the new capabilities we’ve gained with the acquisition of Bolthouse, a business with a strong innovation pipeline.
Next month, Bolthouse Farms will introduce an exciting spring innovative array of new salad dressings, smoothies and juices, which will be on target with health and wellness trends.
4. Developing Markets. Campbell’s fourth bold move is expansion into faster-growing markets, with a focus on Asia and Latin America.
The recent acquisition of Kelsen Group has meaningfully expanded our growth potential in developing markets and the $60 billion global category for sweet biscuits. Currently, China and Hong Kong generate almost 40% of Kelsen’s sales. Over the long term, the expansion of other key brands will be considered in these important markets.
We know these four bold moves will be essential to build Campbell’s strengths and core equities while embracing the future. This work will demand a relentless focus on what consumers need and want today, as well as where they’re headed in the future.
We are gradually shifting Campbell’s “center of gravity.” Our $8 billion portfolio of brands is far more diversified than it was three years ago — better balanced and better positioned to meet evolving consumer needs, behaviors and expectations.
See the video below of President and CEO Denise Morrison on CNBC.