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Campbell Enters into Agreements to Expand Its Production and Distribution Capabilities in Mexico

Press Releases

Partners with Grupo Jumex in Beverages and Conservas La Costeña in
Soups, Broths and Sauces; Plans to Close Villagrán Plant

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 14, 2013–
Campbell Soup Company (NYSE:CPB) announced today that it
has entered into commercial arrangements with Grupo Jumex and Conservas
La Costeña that will expand the company’s access to manufacturing and
distribution capabilities in Mexico for its beverages, soups, broths and

Grupo Jumex, the largest producer of fruit juices and nectars in Mexico,
will manufacture and distribute Campbell’s “V8” portfolio
throughout the Mexican market. Conservas La Costeña, one of the largest
producers of prepared foods in the country, will manufacture and
distribute “Campbell’s” soups, broths and Italian sauces. Under the
terms of its agreements with each partner, Campbell will retain
responsibility for consumer marketing, product research and new product
development. Financial terms were not disclosed.

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“We are delighted to be working with Grupo Jumex and Conservas La
Costeña – outstanding companies with long and distinguished histories –
in a market that offers Campbell exciting avenues for growth. Our
arrangements with these new partners will increase our access to
customers and enable us to reach new consumers for our products. We
believe that they will redefine the scope of our business opportunities
in Mexico.”

Mexico is a growing market with more than 112 million people. Annual
sales of non-carbonated beverages in Mexico are at $3.5 billion today,
and are currently growing at approximately 6 percent per year.
Campbell’s beverage business constitutes the largest part of the
company’s portfolio in Mexico and has grown steadily over the past
several years.

Currently, Campbell employs approximately 330 people in Mexico. As a
result of entering into these agreements, Campbell will close its plant
in Villagrán, Mexico, and eliminate approximately 260 positions. The
company plans to retain approximately 70 positions in R&D, sales, supply
chain, marketing and general management. Production from the Villagrán
facility will be transitioned to Grupo Jumex and Conservas La Costeña
facilities in phases through September 2013. Campbell anticipates that
it will record a restructuring charge of $9 million ($6 million after
tax) related to this initiative, most of which will be incurred in the
second quarter of fiscal 2013.

“We would like to recognize our employees in Mexico for their
significant contributions to our business. Campbell is committed to
helping them work through this transition,” said Humberto Ibarzábal,
Campbell’s President-Latin America.

About Campbell Soup Company

Campbell Soup Company is a manufacturer and marketer of high-quality
foods and simple meals, including soup and sauces, baked snacks and
healthy beverages. Founded in 1869, the company has a portfolio of
market-leading brands, including “Campbell’s,” “Pepperidge Farm,”
“Arnott’s,” “V8” and “Bolthouse Farms.” Through its corporate social
responsibility program, the company strives to make a positive impact in
the workplace, in the marketplace and in the communities in which it
operates. Campbell is a member of the Standard & Poor’s 500 and the Dow
Jones Sustainability Indexes. For more information, visit

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 sales, earnings, and margins. 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 impact of strong competitive responses to the company’s efforts
to leverage its brand power in the market; (2) the risks associated with
trade and consumer acceptance of the company’s initiatives; (3) the
company’s ability to realize projected cost savings and benefits; (4)
the company’s ability to manage changes to its business processes; (5)
the increased significance of certain of the company’s key trade
customers; (6) the impact of fluctuations in the supply or costs of
energy and raw and packaging materials; (7) the impact of portfolio
changes, including the Bolthouse Farms acquisition; (8) the
uncertainties of litigation; (9) the impact of changes in currency
exchange rates, tax rates, interest rates, debt and equity markets,
inflation rates, economic conditions and other external factors; (10)
the impact of unforeseen business disruptions in one or more of the
company’s markets due to political instability, civil disobedience,
armed hostilities, natural disasters or other calamities; and (11) 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.

Source: Campbell Soup Company

Campbell Soup Company
Carla Burigatto (Media)
Driscoll (Analysts / Investors)

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