CAMDEN, N.J., Aug 28, 2002 (BUSINESS WIRE) — Campbell Soup Company (NYSE:CPB) today announced the formation of a new division to align and grow its expanded international businesses. The new division represents approximately $1.3 billion of Campbell’s $6.7 billion in annual sales, making it the company’s second-largest operating unit. Recent acquisitions in Europe and Australia have nearly doubled Campbell’s sales outside of North America. John Doumani, currently President of Campbell Asia/Pacific, will lead the new division. As President of Campbell International, Doumani, 45, will oversee all Campbell operations in Asia/Pacific and Europe and will report to President and Chief Executive Officer Douglas R. Conant.
In addition, Campbell announced that Andrew K. Hughson, President of North American Soup, is leaving the company. Larry McWilliams, 46, Senior Vice President and Chief Customer Officer, will lead the division on an interim basis until a permanent successor is named. McWilliams’ general management experience includes being Senior Vice President and General Manager of the Minute Maid Company N.A., a $1.7 billion division of the Coca Cola Company. As the senior executive overseeing Campbell’s retail sales organization, McWilliams has played a key role in the company’s strategy to revitalize its core U.S. Soup business. He joined Campbell in March 2001.
Hughson, 47, joined Campbell in 1996 as President of its Canadian business unit. He was named President of Campbell Asia/Pacific in 1997. In April 2001, he was appointed to lead the newly created North American Soup Division.
Conant commented, “Andrew Hughson has provided strong leadership for Campbell in three important assignments. He has earned the respect of his colleagues for his dedication to Campbell, our brands, and our people. We appreciate Andrew’s contributions and wish him the very best in the future.”
Conant continued, “We have made meaningful progress toward revitalizing our U.S. soup business in the first year of our Transformation Plan. Teams across every function have executed the foundation work outlined in our plan. We have maintained our focus on growing our ready-to-serve portfolio while taking steps to stabilize our condensed business. We are leveraging our technology and expertise to enhance quality. We are pursuing an aggressive innovation program to improve convenience and attract new users. And we have strengthened our ability to execute at retail. With new leadership, I am confident we will build on this progress and realize the full potential of our Transformation Plan for our U.S. soup franchise.”
Campbell will release its fourth quarter and fiscal year 2002 results on September 5. The company said today it expects to announce diluted earnings per share at or slightly above its previous guidance of $1.30, excluding the impact of its Australian manufacturing reconfiguration, for the fiscal year ended July 28, 2002.
Today’s announcement of a new international division is part of Conant’s realignment of Campbell’s operating structure since he became CEO in January 2001. Shortly after being named to the position, he created four new global functions, each led by a senior executive, to leverage Campbell’s scale in its supply chain, customer relations, strategic planning and information technology. In April 2001, Conant created Campbell’s Food and Beverage Division to provide greater executive focus to Campbell’s non-soup U.S. brands, including “V8” vegetable juices, “Prego” Italian sauces, “Pace” Mexican sauces, and “Franco-American” canned pasta and gravies. This division represents approximately $1.2 billion of Campbell’s annual sales.
Commenting on the new international division, Conant said, “We have made strategic acquisitions which significantly enhance our international growth opportunities. The new scale of our operation demands a higher level of attention so that we can realize the full potential of our larger portfolio. By combining these valuable brands and businesses, we will enhance our ability to create integrated growth platforms, assess and execute additional acquisitions and alliances, and leverage our increased scale.”
In May 2001, Campbell acquired market-leading dry soup and sauce brands in Europe from Unilever for approximately $950 million. The newly acquired brands include “Oxo” and “Batchelor’s” in the U.K. and “Heisse Tasse” in Germany. In July 2002, Campbell acquired Snack Foods Limited, a leader in the growing salty-snack category in Australia, for approximately $145 million. Also in July, the company announced its intention to purchase Erin Foods, Ireland’s second largest dry soup business, for approximately $26 million. Campbell is awaiting regulatory approval to complete the transaction.
Doumani joined Campbell in 1999 as Managing Director of Arnott’s, Australia’s leading biscuit company. He was named to the additional post of President, Campbell Asia/Pacific in 2000, responsible for the Campbell and Arnott’s businesses in Australia, New Zealand, Papua-New Guinea, Indonesia, South Asia and Greater China. Under Doumani’s leadership, the Asia/Pacific Division has delivered top line growth of 7 percent per year and instituted an aggressive innovation program for Arnott’s biscuits. Prior to Campbell, Doumani’s management experience included 13 years with Johnson & Johnson in Australia, Europe and North America.
Conant said, “John Doumani is one of Campbell’s most talented executives and is the ideal leader for this new organization. He has consistently demonstrated outstanding leadership by building our business in the marketplace and by building a talented team in the workplace. I am confident that John will bring the executive focus and commitment to innovation that is required for Campbell to win with consumers in these competitive geographies.”
As part of its new international management team, Campbell also announced the following appointments:
— Anthony DiSilvestro, 43, has been appointed Vice President and Managing Director of Campbell International, overseeing finance, strategic planning and administration. DiSilvestro has been a Campbell executive since 1995, serving as Treasurer, Controller-North American Soup and Sauces, and most recently, Vice President of Strategic Planning and Corporate Development. — Brian Mirsky, 48, has been appointed President of Campbell Europe. Mirsky was named Managing Director of Campbell’s operations in the U.K. and Ireland in June. Previously, he led Campbell Canada to share growth across all business segments during his four-year tenure, beginning in 1998. Prior to Campbell, Mirsky held sales, marketing and management positions with H.J. Heinz, Pizza Hut and was President of Pillsbury Canada. He succeeds Pierre Laubies, 46, who previously announced his intention to leave Campbell in September. A successor to Mirsky to lead U.K./Ireland is expected to be named shortly. — An external search for a successor to Doumani as President of Campbell’s Asia/Pacific operations is underway. In the interim, Asia/Pacific will continue to report directly to Doumani. Forward-Looking Statements
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CONTACT: Campbell Soup Company (Media) Jerry S. Buckley, (856) 342-6007 or Campbell Soup Company (Analysts) Leonard F. Griehs, (856) 342-6428
