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Campbell Announces Plan for ‘Driving Quality Growth,’ Building on Progress of Transformation Plan Begun in July 2001

CAMDEN, N.J.–(BUSINESS WIRE)–June 24, 2004–Campbell Soup
Company (NYSE:CPB)

    --  Company Targets 3-4 Percent Net Sales Growth and 5-7 Percent
        Earnings Per Share Growth

    --  Cost Savings Initiatives Expected to Result in a Pre-Tax
        Restructuring Charge of up to $35 Million in Fourth Quarter of
        Fiscal 2004

    --  Company Will Invest $125 Million to Implement SAP in North
        America to Improve Management Systems and Productivity

    --  Consumer Focus is on Expanding Convenience and Availability of
        Leading Brands, Including "Campbell's," "V8," "Pepperidge
        Farm," And "Arnott's"

Campbell Soup Company (NYSE:CPB) today announced a plan for
“Driving Quality Growth” to improve its sales growth and the quality
and growth of its earnings. The new plan builds on the progress
Campbell has made since launching its Transformation Plan in July
2001.

    The plan includes the following key elements:

    --  Annual growth targets of 3-4 percent for net sales and 5-7
        percent for earnings per share;

    --  Cost savings initiatives expected to result in a pre-tax
        restructuring charge of up to $35 million in the fourth
        quarter of fiscal 2004, which will generate significant future
        savings;

    --  Implementation of SAP in North America; and

    --  Focus on convenience and availability as the primary sources
        of incremental future revenue growth, and an emphasis on
        wellness initiatives.

Over the past three years of the Transformation Plan, Campbell
will have invested nearly $600 million in both capital and expense in
new product and packaging development, quality improvements, and
increased marketing support. As a result, Campbell has strengthened
its worldwide product portfolio. Specifically, it has improved its
market-leading U.S. soup business, continuing the strong growth of
ready-to-serve soups, while moderating the decline of condensed soups.
The growth of ready-to-serve soups has been driven, in particular, by
sales of microwaveable soups, including Campbell’s “Chunky,” “Select,”
and “Soup at Hand,” which are expected to reach more than $250 million
in annual retail sales by the end of the fiscal year. In addition, the
company has had strong sales growth in its U.S. Beverage business and
in its snacking and baking businesses, including Pepperidge Farm in
the U.S. and Arnott’s in Australia.

“We have rebuilt the company and have put it back on a growth
track,” said Douglas R. Conant, Campbell’s President and Chief
Executive Officer. “We’ve delivered growth in our U.S. Soup business
and have strengthened key businesses in our broader portfolio. We’ve
significantly improved the quality of our products and packaging,
restored marketing spending to very competitive levels, and rebuilt
our innovation pipelines. Our consumer insights are much better and
our customer relationships are stronger. In short, we are
significantly better off than we were when we began our transformation
three years ago.”

Conant continued, “However, despite these accomplishments, we’re
not yet where we want to be in some areas. It has taken us longer than
expected to moderate the decline in condensed soup and this will
continue to be a priority for us. We need to continue to improve our
net sales growth, lower our administrative expenses, and continue to
upgrade our information technology capabilities. And, importantly, we
must improve the quality of our earnings. The reduction in our
workforce involved difficult decisions, but they are consistent with
our strategic direction and our new organization structure.

“Our plan for ‘Driving Quality Growth’ is designed to improve the
quality of top-line growth by increasing volume; to enhance the
quality of operating earnings by growing the top line and improving
margins; and to drive continuous improvement in the quality of our
products, the quality of our marketing, and the quality of our
management.”

Key Cost Savings Initiatives to Help Company Improve Operating
Margins and Asset Utilization

As part of its plan, Campbell also announced several key cost
savings initiatives designed to improve the company’s operating
margins and asset utilization. They include:

    --  A reduction of approximately 300 salaried positions in North
        America. These reductions, including approximately 165
        positions at Campbell's World Headquarters in Camden, N.J.,
        will occur by reducing layers of management, not filling open
        positions, and eliminating redundant positions resulting from
        the realignment of its North America operations. In February,
        the company combined its U.S. Soup, Sauces and Beverages
        businesses into one business unit. The company is also
        reorganizing its U.S. sales force to place greater emphasis on
        new distribution channels, reflecting its commitment to
        convenience and availability. In addition, the company expects
        to eliminate up to 100 positions in its international
        locations, subject to legal requirements. In total, these
        reductions in Campbell's North America and International
        divisions represent less than 2 percent of the company's
        workforce of approximately 25,000 worldwide. The reductions
        are expected to result in a pre-tax restructuring charge of up
        to $25 million, equal to approximately 4 cents per share, to
        be taken in the fourth quarter of fiscal 2004. Annual pre-tax
        savings are expected to be approximately $40 million, starting
        in fiscal year 2005.

    --  Implementation of a new sales and distribution system for the
        company's business in Australia, converting from a direct
        store delivery system to a central warehouse system. This
        initiative will be executed over the next three years,
        beginning with the outsourcing of the remainder of the
        company's logistics infrastructure. The initiative, which is
        subject to final customer negotiations and union consultation,
        is expected to have a total cost of approximately $60 million
        over the next three years of which $10 million is expected to
        be taken as a restructuring charge in the fourth quarter of
        fiscal 2004. Overall, it is expected to generate annual
        savings of between $10 to $15 million, equal to approximately
        two to three cents per share, beginning in fiscal year 2008.

    --  Implementation of a new SAP-based information management
        system in North America. The project is planned for the next
        three years and is expected to cost approximately $125
        million, including both capital and expense. The
        implementation of the new system is expected to significantly
        improve management systems and productivity.

“On Desire” Strategy Focuses on Making Campbell Products More
Convenient and Available to Consumers … Anytime, Anywhere

Under the plan, Campbell will continue to invest in its market
leading U.S. brands, including “Campbell’s,” “V8,” “Pepperidge Farm,”
and “Arnott’s,” the leading biscuit brand in Australia. These brands
currently account for two-thirds of Campbell’s global net sales.

The plan will also focus on expanding the convenience and
availability of these and other leading brands through new products
and packaging and broader distribution in growing channels both in and
beyond grocery.

Further details of the plan include:

    --  Continued investment in support of the convenience platform

        The company is investing nearly $65 million in capital over
        this fiscal year and next fiscal year to double production
        capacity for microwaveable soups and it plans to continue its
        significant marketing support for these soups.

    --  New products for fiscal 2005

        Campbell is launching 29 new products in fiscal 2005, several
        of which support the company's focus on wellness. They
        include:

        --  Five varieties of Campbell's "Carb Request" ready-to-serve
            soups, which contain between 3 and 6 grams of net
            carbohydrates per serving;

        --  Four varieties of "Campbell's Chunky" Chili, giving
            Campbell a presence in the simple meals arena and the $300
            million U.S. chili category;

        --  A line of "V8" vegetarian soups, entrees, and chili for
            the Away from Home market; and

        --  Low-sugar varieties of "V8 Splash" juice drinks and "V8
            Splash" Smoothies that contain 1/3 less sugar than leading
            juice drinks.

    --  Launch of aseptic soups in the U.S.

        Over the next 12 - 24 months, Campbell plans to introduce
        premium ready-to-serve aseptic soups in the U.S. Aseptic
        processing provides superior consumer benefits in the form of
        better taste and higher nutritional value, and the soup is
        packaged in a resealable container, making it easier to store
        and reuse. Campbell will leverage its experience in aseptic
        soup from its market leading positions in France, Australia,
        and, most recently, Canada.

    --  Gravity-feed shelving

        Campbell expects to continue to expand its gravity-feed
        shelving fixtures for condensed soup. To date, Campbell has
        installed fixtures in more than 6,000 stores. By fiscal year
        end, Campbell expects the new shelving will be in more than
        8,000 stores, representing about 33 percent of the all
        commodity volume. Stores with gravity-feed shelving, which is
        designed to make shopping in the soup aisle easier, have shown
        favorable trends for condensed soup.

Commenting on today’s announcement, Conant said, “By implementing
our plan for ‘Driving Quality Growth,’ we will make Campbell a
stronger, more competitive company. I am pleased with our
accomplishments from the Transformation Plan and I believe we are well
positioned to tackle the challenges that lie ahead.”

Investor Meeting

The company will host an investor meeting on June 25, 2004, at
10:00 a.m. Interested parties may listen to the presentation live by
logging on to Campbell’s website at www.campbellsoupcompany.com and
clicking on the Webcast banner. An archive of the broadcast will also
be available approximately two hours after it is completed at
www.campbellsoupcompany.com. At this meeting, the company may refer to
certain non-GAAP measures. As required by the SEC, Campbell has
provided a reconciliation of those measures to the most directly
comparable GAAP measures, which is available on its investor website
at www.campbellsoupcompany.com.

Forward-Looking Statements

This release contains “forward-looking statements” which reflect
the company’s current expectations about its future plans and
performance, including statements concerning the impact of marketing
investments and strategies, new product introductions, cost-saving
initiatives and quality improvement on sales, earnings and margins.
These forward-looking statements rely on a number of assumptions and
estimates which could be inaccurate and which are subject to risks and
uncertainties. Actual results could vary materially from those
anticipated or expressed in any forward-looking statement made by the
company. Please refer to the company’s most recent Form 10-K and
subsequent filings for a further discussion of these risks and
uncertainties. The company disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.

About Campbell Soup Company

Campbell Soup Company is a global manufacturer and marketer of
high quality soup, sauce, beverage, biscuit, confectionery and
prepared food products. The company is 135 years old, with nearly $7
billion in annual sales and a portfolio of more than 20 market-leading
brands. For more information on the company, visit Campbell’s website
on the Internet at www.campbellsoupcompany.com.

    CONTACT: Campbell Soup Company
             Media
             Jerry S. Buckley, (856) 342-6007
                 or
             Analysts
             Leonard F. Griehs, (856) 342-6428

    SOURCE: Campbell Soup Company