Paves Way for Expanded Distribution of “Campbell’s” Products in Russia
CAMDEN, N.J.–(BUSINESS WIRE)–May. 26, 2009–
Campbell Soup Company (NYSE:CPB) today announced it has entered
into a long-term agreement with Coca-Cola Hellenic Bottling
Company S.A. for the distribution of “Campbell’s Domashnaya Klassika”
(Campbell’s Home Classics) concentrated broth and other soup products in
Douglas R. Conant, Campbell’s President and Chief Executive Officer,
said, “Establishing a long-term distribution partnership with Coca-Cola
Hellenic, the largest distributor in Russia, is an important step in
unlocking the potential of the Russian soup market for Campbell. The
emerging markets of Russia and China both represent a significant growth
opportunity in the business that Campbell knows more fully than any
other company in the world. These markets will play an increasingly
important role in Campbell’s future as we gain momentum in our key areas
Under the terms of the agreement, Campbell will be responsible for
consumer and market research, brand management, marketing, product
development and production. Coca-Cola Hellenic will be responsible for
distribution, sales, in-store marketing and trade receivables.
Financial terms were not disclosed.
Coca-Cola Hellenic is currently distributing “Campbell’s Domashnaya
Klassika” products in the Moscow region and in August 2009 plans to
expand distribution to over 100 cities and 12 regions of Russia, with
further nationwide distribution to follow.
Larry McWilliams, President, Campbell International, said, “Coca-Cola
Hellenic has a world-class distribution network in Russia and its other
markets, unmatched by any other distributor. Working with Coca-Cola
Hellenic, we will be able to accelerate distribution throughout Russia,
expanding more quickly into additional markets.”
Coca-Cola Hellenic is Russia’s largest distributor and seller of
beverages and is responsible for managing the sales and distribution of
an extensive range of brands of The Coca-Cola Company and other brands.
The company operates 14 plants with distribution centers located across
Chris Delaney, President of Campbell’s Emerging Markets, added,
“Campbell and Coca-Cola Hellenic share a vision and belief in the
opportunity to develop a large commercial soup business throughout
Russia. We look forward to working together to build one of the world’s
great soup businesses in this market.”
Campbell entered the Russian market in 2007, launching in the Moscow
region, which has a population of approximately 17 million. Along with
its parallel launch in China, the Russian initiative is part of
Campbell’s strategy to expand the availability of its products in new
Soup consumption in Russia is more than double that of the United
States, where U.S. consumers eat approximately 14 billion soup
servings per year. In Russia, nearly 32 billion servings are consumed
each year, or approximately 230 servings per capita, which are still
predominately homemade, making Russia the world’s second largest soup
consuming market after China.
Campbell currently offers four varieties of its “Domashnaya Klassika”
broth products: Chicken, beef, mushroom and beef & mushroom. Packaged in
portable pouches bearing Campbell’s iconic red and white branding, these
high-quality concentrated broths contain chunks of chicken, beef and
mushroom, with vegetables. Campbell developed these broths to meet
Russian consumers’ high standards, while dramatically reducing the time
it takes to prepare soup from scratch.
Campbell has additional distribution agreements with The Coca-Cola
Company and other bottlers of The Coca-Cola Company’s products, notably
one supporting its single-serve refrigerated beverage business in North
America and another with Swire Pacific for distribution of “Swanson”
broth in China.
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of high
quality foods and simple meals, including soup, baked snacks and
vegetable-based beverages. Founded in 1869, the company has a portfolio
of market-leading brands, including “Campbell’s,” “Swanson”, “Pepperidge
Farm,” “Arnott’s,” and “V8”. For more information on the company, visit
Campbell’s website at www.campbellsoupcompany.com.
Forward Looking Statements
This release contains “forward looking statements” that reflect
Campbell’s current expectations about its future performance. 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
Campbell. Please refer to Campbell’s most recent Form 10-K and
subsequent filings for a further discussion of these risks and
uncertainties. Campbell 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 CompanyAnthony Sanzio (Media), 856-968-4390Leonard
F. Griehs (Analysts), 856-342-6428
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