caret-down

Campbell Chairman Sends Letter to Shareholders

Recommends Shareholders Vote to Support Current Campbell Board of
Directors

CAMDEN, N.J.–(BUSINESS WIRE)–Oct. 25, 2018–
Campbell Soup Company (NYSE:CPB) announced today it has sent a
letter from its Independent Chairman, Les C. Vinney, to its shareholders
in connection with Campbell’s 2018 Annual Meeting of Shareholders,
scheduled for Nov. 29, 2018.

In the letter, Mr. Vinney:

  • Highlights the strength of Campbell’s go-forward strategy
  • Outlines why Third Point’s slate of directors are not qualified to
    oversee Campbell
  • Reminds shareholders that Third Point has failed to present any new
    ideas or any specific strategic plan for the Company
  • Discusses the Board’s robust and thorough CEO search process
  • Reinforces that a number of Campbell’s largest shareholders and
    descendants of John T. Dorrance are aligned and committed to the
    go-forward strategy

Campbell strongly recommends that shareholders vote to support the
current Campbell Board of Directors with a vote on the GOLD
proxy card.

The full text of Campbell’s letter to shareholders follows.

VOTE THE GOLD PROXY CARD TODAY

Dear Fellow Campbell Shareholders,

My name is Les C. Vinney and I am the independent Chairman of Campbell
Soup Company. I am writing to you because our 2018 Annual Meeting of
Shareholders is only a month away. At that meeting, you will be faced
with a critical decision regarding the future of Campbell and your
valued investment. Third Point, a New York-based hedge fund that bought
Campbell stock less than five months ago, is attempting to seize control
of Campbell’s entire Board with a slate of hand-picked and
underqualified candidates. Third Point has failed to articulate a cogent
plan to run the Company. In fact, it has not provided any new
ideas to enhance shareholder value. Third Point’s talk of an
“operational turnaround” and a “proper strategic review” is a charade.
The truth is that Third Point is only interested in pursuing an
immediate sale of Campbell.

Unlike Third Point, the Campbell Board of Directors is unified and
committed to maximizing value for all Campbell shareholders. We are
confident in the new strategic direction we detailed on August 30th
and strongly believe that our plan to improve the focus and financial
performance of the Company is the best path forward at this time.
Additionally, your Board will continue to seriously consider other
strategic options, including a sale of the Company—an alternative that
we thoroughly evaluated during the strategy and portfolio review—if such
options can be shown to demonstrably enhance shareholder value relative
to our current plan.

To support Campbell, vote FOR the re-election of Campbell’s highly
qualified and engaged slate of directors on the enclosed GOLD
proxy card today. Vote only the GOLD
proxy card—please discard any white proxy cards you receive from Third
Point.

CAMPBELL’S GO-FORWARD PLAN IS THE RIGHT SET OF ACTIONS,
AT
THIS TIME, TO MAXIMIZE VALUE

On August 30th, Campbell announced the significant actions
the Company would take following our comprehensive, Board-led strategy
and portfolio review aimed at turning around the business, improving
operating and financial performance and returning Campbell to
sustainable, profitable growth. As part of this review, the Board
considered a full slate of strategic options to maximize shareholder
value, including optimizing the portfolio, divesting businesses,
splitting the Company and pursuing a sale. All options were on the table.

The Board determined that, at this time, the best path forward to
maximize value is to focus the Company, pursue the divestiture of
non-core businesses—using the proceeds to significantly pay down debt
and strengthen our balance sheet—further reduce costs and increase our
asset efficiency. In addition to these actions, we remain focused on
retaining Campbell’s investment grade credit rating and maintaining our
competitive dividend, which returned $426 million to shareholders in
fiscal 2018 and over $1.2 billion to shareholders since fiscal 2016.

 

TOTAL RETURNS TO SHAREHOLDERS

   

F16

$390 MILLION

F17

$420 MILLION

F18

$426 MILLION

 

Our plan is the right one to improve performance and revitalize the
Company. Our new management team is working with urgency to implement
this strategic plan and drive sustainable, long-term shareholder value.

Furthermore, the current Campbell Board combines the right mix of
financial, operational, and strategic expertise. Most importantly, all
of your directors are committed to evaluating all
potential future strategies to demonstrably enhance shareholder value.

THIRD POINT’S HAND-PICKED NOMINEES ARE UNDERQUALIFIED TO OVERSEE
CAMPBELL; THIRD POINT HAS FAILED TO PRESENT A COGENT PLAN

Despite Campbell’s willingness and attempts to engage with Third Point
prior to and immediately following our strategy and portfolio review,
the hedge fund ignored our outreach and instead put forward a slate of
director nominees to replace the entire Campbell Board of Directors. The
Third Point slate is underqualified compared to the current Board, lacks
public company operational experience, and has a single point agenda
that is being driven by Third Point’s Founder and CEO Daniel Loeb—pursue
an immediate sale of Campbell.

Third Point’s director candidates are nothing more than hand-picked
agents selected to execute Dan Loeb’s self-serving scheme to deprive you
of the opportunity to benefit from the Company’s plans to maximize
shareholder value. In fact:

  • 9 of Third Point’s nominees possess NO
    operational experience
  • 2 of the Third Point nominees are employees of Third Point
           
  Campbell’s Existing     Third Point Nominees
    Board      
Public Company CEO Experience  

5 √

   

1 x

Experience in Food / CPG Industry  

8 √

   

5 x

Financial Expertise  

6 √

   

4 x

Operational Experience  

9 √

   

3 x

Marketing Experience  

6 √

   

3 x

Outside Public Company Board Experience1

 

8 √

   

6 x

Open to All Strategies, Including and Beyond a Sale of the Company  

12 √

   

0 x

 

Moreover, Third Point has, at best, a superficial understanding of the
food industry and the Company, as evidenced by its non-substantive plan
filled with platitudes and business school buzz words.

             
Third Point’s Ideas     New Idea?     Campbell’s Plan

Meals and Beverages

       
Turnaround Soup     No!     Outlined plan on 8/30; managing according to a specific
profile and portfolio role
Stabilize Fresh Food     No!     Divesting Campbell-Fresh; outlined rationale on 8/30
Renovate & Innovate     No!     Core tenet of any branded food business; we do this daily

Improve Retailer
Relationships

    No!     Strong working relationships with our customers

Snacks

Innovate & Grow     No!     Outlined plan on 8/30; making investments in both to fuel
growth

Execute on
Deal Synergies

    No!     Focused on this from day 1 post-Snyder’s-Lance close
Re-Shape Portfolio     No!     Outlined plan on 8/30; remain committed to evaluating all
options

if any can demonstrably enhance value for all
shareholders

Optimize Direct Store
Delivery (DSD) Network

    No!     Part of original savings from Snyder’s-Lance acquisition and 8/30
plan
; DSD is an important competitive advantage

Attract World-Class
Operating Team

    No!     Refreshed management team; comprehensive CEO search underway

Sale of All or Part
of the Company

    No!     Considered a full slate of options as part of strategic review

 

_____________________
1 In past 5 years

 

SUPPORT THE TEAM WITH A CLEAR PLAN TO DRIVE
SUSTAINABLE SHAREHOLDER VALUE – VOTE GOLD

THE CAMPBELL BOARD IS CONDUCTING A THOROUGH CEO SEARCH PROCESS

Prior to the release of our third-quarter results in May 2018, your
Board initiated a dialogue with Denise Morrison, the then-President and
Chief Executive Officer, expressing its dissatisfaction with the
performance and execution of the business. After further discussion with
the Board, Ms. Morrison agreed that she would retire effective May 18,
2018—the same day as our third-quarter earnings report. At the same
time, we announced we would undertake a comprehensive strategic review
and named Keith McLoughlin, an experienced business leader and highly
qualified member of your Board, as Interim President and Chief Executive
Officer to facilitate an orderly transition in management.

Given the significant management changes that occurred at Campbell over
the last year along with a recognition of the need for a new strategic
direction at Campbell, the Board believed that the best course of action
was to install a highly qualified interim CEO and launch a comprehensive
search for a permanent CEO.

Over the past several months, the Board, with the support of leading
candidate assessment and executive search firms, has been meeting with
qualified candidates who possess a track record of proven results and
achievement. Despite Third Point’s false claims to the contrary, the
Board is confident that it will attract and appoint a world-class CEO by
the end of the calendar year. In fact, a number of highly qualified
candidates have expressed strong interest in the CEO opportunity.

We have not let Third Point’s proxy contest distract us. We are focused
on maintaining our thoughtful approach to ensure that our choice for CEO
is the best long-term fit for Campbell and our shareholders.

FOUR OF OUR LARGEST SHAREHOLDERS SUPPORT THE BOARD ON THE GOLD CARD

Four of Campbell’s largest shareholders: Bennett Dorrance, Mary Alice
Dorrance Malone, Archbold van Beuren and Charlotte Weber—three of whom
sit on your Board and all descendants of Dr. John T. Dorrance, the
inventor of Campbell’s condensed soup—each separately notified me
of their support for the current Campbell Board, on behalf of themselves
and certain family members. As a result, these shareholders intend to
cast their votes—representing approximately 41 percent of the shares
outstanding—on the GOLD proxy card
in support of the current Board at the upcoming Annual Meeting of
Shareholders.

Instead of respecting their views as long-term, significant
shareholders, Third Point launched baseless attacks against Campbell
Directors Bennett Dorrance, Mary Alice Dorrance Malone, and Archbold van
Beuren—claiming that they have “long enriched themselves at the expense
of shareholders and the Company.” In reality, no individuals have more
at stake here than these three, as a meaningful portion of their net
worth is comprised of Campbell shares. As long-term shareholders, they
are subject to the same fluctuations in our share price as all other
shareholders. They do not enjoy any preferential dividends or voting
rights. Their interests are fully aligned with those of all
shareholders—to maximize long-term, sustainable value. To suggest
anything else is simply false.

YOUR VOTE IS EXTREMELY IMPORTANT – VOTE THE GOLD PROXY
CARD TODAY

Your Board is and will continue to be active and engaged. It is working
to implement the plan to make Campbell a stronger company. The Board has
taken swift action—making significant management changes, launching a
comprehensive strategy and portfolio review, and announcing a new
comprehensive path forward. We remain open and willing to consider any
alternative options for the Company if such options can demonstrably
enhance shareholder value beyond what has already been announced.

On behalf of your Board of Directors, thank you for your continued
support.

Sincerely,

Les C. Vinney

Chairman of the Board

 

Your Vote Is Important, No Matter How Many or How Few Shares
You Own!

If you have questions or need assistance, please contact:
 

INNISFREE M&A Incorporated

 
Shareholders Call Toll-Free: (877) 687-1866
International shareholders may call: +1-412-232-3651
Banks & Brokers Call Collect: (212) 750-5833
 

IMPORTANT

We urge you NOT to sign any white proxy card sent to you by Third
Point.

If you have already done so, you have every legal right to change
your vote by using
the enclosed GOLD proxy card to
vote TODAY—by telephone,

by Internet, or by signing, dating and returning the GOLD
proxy card in the
postage-paid envelope provided.

 

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” For generations, people have trusted
Campbell to provide authentic, flavorful and affordable snacks, soups
and simple meals, and beverages. Founded in 1869, Campbell has a
heritage of giving back and acting as a good steward of the planet’s
natural resources. The company is a member of the Standard and Poor’s
500 and the Dow Jones Sustainability Indexes. For more information,
visit www.campbellsoupcompany.com or
follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on the company’s business or financial results. These
forward-looking statements rely on a number of assumptions and estimates
that could be inaccurate and which are subject to risks and
uncertainties. The factors that could cause the company’s actual results
to vary materially from those anticipated or expressed in any
forward-looking statement include: (1) the company’s ability to execute
on and realize the expected benefits from the actions it intends to take
as a result of its recent strategy and portfolio review, (2) the ability
to differentiate its products and protect its category leading
positions, especially in soup; (3) the ability to complete and to
realize the projected benefits of planned divestitures and other
business portfolio changes; (4) the ability to realize the projected
benefits, including cost synergies, from the recent acquisitions of
Snyder’s-Lance and Pacific Foods; (5) the ability to realize projected
cost savings and benefits from its efficiency and/or restructuring
initiatives; (6) the company’s indebtedness and ability to pay such
indebtedness; (7) disruptions to the company’s supply chain, including
fluctuations in the supply of and inflation in energy and raw and
packaging materials cost; (8) the company’s ability to manage changes to
its organizational structure and/or business processes, including
selling, distribution, manufacturing and information management systems
or processes; (9) the impact of strong competitive responses to the
company’s efforts to leverage its brand power with product innovation,
promotional programs and new advertising; (10) the risks associated with
trade and consumer acceptance of product improvements, shelving
initiatives, new products and pricing and promotional strategies; (11)
changes in consumer demand for the company’s products and favorable
perception of the company’s brands; (12) changing inventory management
practices by certain of the company’s key customers; (13) a changing
customer landscape, with value and e-commerce retailers expanding their
market presence, while certain of the company’s key customers maintain
significance to the company’s business; (14) product quality and safety
issues, including recalls and product liabilities; (15) the costs,
disruption and diversion of management’s attention associated with
campaigns commenced by activist investors; (16) the uncertainties of
litigation and regulatory actions against the company; (17) the possible
disruption to the independent contractor distribution models used by
certain of the company’s businesses, including as a result of litigation
or regulatory actions affecting their independent contractor
classification; (18) the impact of non-U.S. operations, including trade
restrictions, public corruption and compliance with foreign laws and
regulations; (19) impairment to goodwill or other intangible assets;
(20) the company’s ability to protect its intellectual property rights;
(21) increased liabilities and costs related to the company’s defined
benefit pension plans; (22) a material failure in or breach of the
company’s information technology systems; (23) the company’s ability to
attract and retain key talent; (24) changes in currency exchange rates,
tax rates, interest rates, debt and equity markets, inflation rates,
economic conditions, law, regulation and other external factors; (25)
unforeseen business disruptions in one or more of the company’s markets
due to political instability, civil disobedience, terrorism, armed
hostilities, extreme weather conditions, natural disasters or other
calamities; and (26) other factors described in the company’s most
recent Form 10-K and subsequent Securities and Exchange
Commission filings. 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.

Important Additional Information and Where to Find It

Campbell has filed a definitive proxy statement on Schedule 14A and form
of associated GOLD Proxy Card with the Securities and Exchange
Commission (“SEC”) in connection with the solicitation of proxies for
its 2018 Annual Meeting of Shareholders (the “Definitive Proxy
Statement”). Campbell, its directors and certain of its executive
officers will be participants in the solicitation of proxies from
shareholders in respect of the 2018 Annual Meeting. Information
regarding the names of Campbell’s directors and executive officers and
their respective interests in the company by security holdings or
otherwise is set forth in the Definitive Proxy Statement. Details
concerning the nominees of Campbell’s Board of Directors for election at
the 2018 Annual Meeting are included in the Definitive Proxy Statement.
BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF THE
COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED
TO THE SEC, INCLUDING THE COMPANY’S DEFINITIVE PROXY STATEMENT AND ANY
SUPPLEMENTS THERETO AND ACCOMPANYING GOLD PROXY CARD, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of
the Definitive Proxy Statement and other relevant documents that
Campbell files with the SEC from the SEC’s website at www.sec.gov or
Campbell’s website at www.investor.campbellsoupcompany.com as
soon as reasonably practicable after such materials are electronically
filed with, or furnished to, the SEC.

Source: Campbell Soup Company

Campbell Soup Company
Investors:
Ken
Gosnell, 856-342-6081
ken_gosnell@campbellsoup.com
or
Media:
Thomas
Hushen, 856-342-5227
thomas_hushen@campbellsoup.com