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Campbell Outlines Four Promising Platforms to Drive Growth over the Next Decade

CAMDEN, N.J.–(BUSINESS WIRE)–Feb. 22, 2017–
Campbell Soup Company (NYSE:CPB) President and Chief Executive
Officer Denise Morrison and Senior Vice President and Chief Financial
Officer Anthony DiSilvestro provided an overview of the company’s
strategic direction during the Consumer Analyst Group of New York
(CAGNY) Conference in Boca Raton, Fla. today.

Morrison shared her perspective on the state of the food industry and
the consumer environment, and highlighted the steps Campbell is taking
to define the future of real food through strategic foresight.

Morrison said, “Across every industry and in every organization, the
pace of change is unpredictable, unrelenting and unforgiving. The future
food world will be more complex and more challenging. To fully unlock
Campbell’s performance, we’re looking beyond typical five-year planning
horizons and establishing well-informed perspectives on opportunities
and disruptions driven by the intersection of real food, health and
well-being and technology.”

Morrison focused on four emerging growth platforms, including:

  1. Future Commerce: E-commerce is transforming the food industry.
    Between 2016 and 2021, e-commerce sales of food and beverages are
    projected to reach $66 billion with a compound annual growth rate of
    38 percent.1 Morrison painted a picture of frictionless
    future commerce where consumers’ food needs will be met anywhere,
    anytime through connected kitchens and an always-on shopping
    environment. Morrison outlined Campbell’s current programs and plans
    such as meal kits, buy-now capabilities, recipe integration with
    leading recipe sites, and dash buttons, as well as the company’s focus
    on increasing its e-commerce capabilities as consumer expectations
    shift from centralized locations and platforms to diverse omni-channel
    experiences.
  2. My.Moments: Campbell recognizes a growth opportunity to expand
    its business in snacking across many of its categories. Snacking is an
    $89 billion market in the U.S. with a compound annual growth rate of
    nearly 3 percent.2 While more than two-thirds of snacks are
    of the “mindless munching” variety, the snacks of tomorrow will be
    more deliberate with a specific purpose; they will be more accessible,
    affordable and high-quality; and they will be both customizable and
    offer functional benefits. Campbell’s longer-term plans include adding
    functional benefits to its existing snacks, while also selecting real
    food ingredients that can address specific needs, such as endurance,
    mood and energy management, with a goal of ultimately creating new
    snacking platforms that are true to the company’s Purpose, Real
    food that matters for life’s moments
    .
  3. Better.Me: The next frontier in nutrition will be about
    reconfiguring diets according to an individual’s specific physiology,
    lifestyle and health goals. The Better.Me growth platform leverages
    biometric data to provide personalized food options. To meet this
    emerging need, Campbell funded Habit, a new startup company positioned
    at the intersection of health, technology and food, poised to lead the
    personalized nutrition revolution. Habit is currently being tested in
    the Greater San Francisco area. For more information, visit www.habit.com.
  4. Limitless Local: Limitless Local is a movement that embraces
    smaller, more regional farming and food production models that foster
    new narratives around quality, community and place. It fosters a more
    intimate relationship to food, where it comes from, how it’s made and
    who the people are behind it. Campbell is incorporating Limitless
    Local in its product development, with brands such as 1915 by
    Bolthouse Farms, Well Yes! soup, and Prego Farmers’ Market,
    as well as a small-batch production of one of the company’s original
    tomato soup recipes using local New Jersey beefsteak tomatoes.
    Campbell’s history of working with American family farmers for more
    than a century and its rich heritage of making simple, affordable and
    delicious foods uniquely position the company to leverage this growth
    platform.

“Guided by our Purpose and our strategic imperatives, we set out to
identify clear and compelling growth opportunities. We prioritized these
growth platforms we believe will have the greatest impact on Campbell
and lead to significant growth opportunities over the next decade,” said
Morrison. “We have what we need to meet the challenges of this new
world. If you look closely at the 148-year history of Campbell, we are
not only a company that has proven ourselves capable of dealing with
profound change … we are a company with a history of leading profound
change, and we are a company that has thrived in periods of profound
change. I’m confident that we can and will do so again in the future.”

DiSilvestro provided an update on the company’s three divisions and its
multi-year cost savings program, which has generated cost savings by
reducing layers of management and increasing spans of control, creating
an integrated global services organization and implementing zero-based
budgeting. While Campbell’s current initiatives will generate in excess
of $300 million in savings, the company has identified additional areas
of savings opportunity, leading the company to increase its aggregate
savings target to $450 million by the end of fiscal 2020. The company
expects to achieve these additional savings by further optimizing its
supply chain network, primarily in North America; evolving its operating
model over time to focus resources on growth opportunities and drive
additional efficiencies; and more fully integrating recent acquisitions
to generate cost synergies and improve effectiveness by leveraging
enterprise scale and capabilities. Cost savings to date have contributed
to recent margin expansion and funded reinvestments in the business.

DiSilvestro said, “Our strategy is to reinvest a portion of these
savings in order to drive growth. We’ll do this a number of ways
including increasing marketing support on our key brands, funding new
product launches and investing against our real food initiative; making
investments in long-term innovation; focusing on geographic expansion in
faster-growing spaces; and building our capabilities in digital and
e-commerce.”

Today’s presentation will be archived on investor.campbellsoupcompany.com
and available for replay later today.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens
and Garden Fresh Gourmet. 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
& 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 include statements made regarding the
company’s marketing strategies and its new enterprise structure and cost
reduction initiative. 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
manage changes to its organizational structure and/or business
processes; (2) the company’s ability to realize projected cost savings
and benefits from its efficiency programs; (3) the impact of strong
competitive responses to the company’s efforts to leverage its brand
power in the market; (4) the impact of changes in consumer demand for
the company’s products and favorable perception of the company’s brands;
(5) the impact of product quality and safety issues, including recalls
and product liabilities; (6) the risks associated with trade and
consumer acceptance of the company’s initiatives, including its trade
and promotional programs; (7) the practices, including changes to
inventory practices, and increased significance of certain of the
company’s key trade customers; (8) the impact of disruptions to the
company’s supply chain, including fluctuations in the supply or costs of
energy and raw and packaging materials; (9) the impact of non-U.S.
operations, including trade restrictions, public corruption and
compliance with foreign laws and regulations; (10) the impact of
business portfolio changes; (11) the uncertainties of litigation and
regulatory actions against the company; (12) disruption to the
independent contractor distribution models used by certain of the
company’s businesses, including the results of litigation or regulatory
actions that could affect their independent contractor classification;
(13) the company’s ability to protect its intellectual property rights;
(14) the impact of an impairment to goodwill or other intangible assets;
(15) the impact of increased liabilities and costs related to the
company’s defined benefit pension plans; (16) the impact of a material
failure in or breach of the company’s information technology systems;
(17) the company’s ability to attract and retain key talent; (18) the
impact of changes in currency exchange rates, tax rates, interest rates,
debt and equity markets, inflation rates, economic conditions, law,
regulation and other external factors; (19) the impact of unforeseen
business disruptions in one or more of the company’s markets due to
political instability, civil disobedience, terrorism, armed hostilities,
natural disasters or other calamities; and (20) 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.

1 Source: Proprietary Campbell Estimate

2 Source: Nielsen Scantrack Data 2015

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken
Gosnell, (856) 342-6081
[email protected]
or
MEDIA
CONTACT:
Thomas Hushen, (856) 342-5227
Thoma[email protected]