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Campbell Steps Up Investments in Baked Snacks and Healthy Beverages; Highlights Plans for Simple Meals

CAMDEN, N.J., Jul 12, 2010 (BUSINESS WIRE) —

Campbell Soup Company (NYSE: CPB) today outlined long-term growth
plans for its core businesses in healthy beverages, baked snacks and
simple meals during a meeting with investors at its recently completed
Campbell Employee Center. A Web cast of the presentation is available at www.investor.campbellsoupcompany.com.

Douglas R. Conant, Campbell’s President and Chief Executive Officer,
opened the meeting with an overview of the company’s strategies, recent
performance and key success factors.

Conant said, “We have made great progress over the last five years, and
we are winning in the workplace, in the marketplace and in the
community. We believe in the power of being a focused food company and
have sharpened our portfolio around three large and growing categories:
healthy beverages, baked snacks and simple meals. I am confident that
over time we can win in these categories by leveraging our leading
brands, regional scale, world-class product technologies, financial
strength and organizational excellence and vitality. We have clear
strategies to drive our growth going forward.”

Conant outlined Campbell’s key success factors for long-term growth:

  • Drive superior sales growth in healthy beverages and baked snacks
    through increased innovation, including wellness, and higher levels of
    marketing support.
  • Improve sales growth in simple meals by:

    • Expanding its global soup leadership position with regional
      business building efforts, stepped up innovation and increasing
      emphasis on emerging markets for long-term growth.
    • Increasing its focus on meal makers such as broth, sauces and
      cooking soups.

Campbell outlined growth plans for healthy beverages, anchored by “V8”
juices, and baked snacks, anchored by Pepperidge Farm and Arnott’s, and
said it intended to increase its focus on these businesses.

Healthy Beverages Well Positioned To Capitalize on Health & Wellness
Trend

Sean Connolly, President, Campbell USA, described upcoming innovations
in Campbell’s U.S. beverages business, including:

  • Building on the Success of “V8 V-Fusion,” Campbell will launch three
    new varieties of “V8 V-Fusion” plus Tea products. Campbell also plans
    to extend the “V-Fusion” line by adding new varieties, such as Concord
    Grape Raspberry.
  • Campbell will enhance the “V8” line with new products, such as sweet
    carrot juice and lower sodium spicy hot “V8” juice, and introduce a
    new, more contemporary package design.

Campbell estimates the U.S. healthy beverages market to be nearly $34
billion annually. Campbell’s U.S. “V8” portfolio accounts for $1 billion
in annual retail sales.

Connolly said, “An increasing number of people are turning to beverages
as a way to get more vegetables into their diets. As this focus on
health and wellness continues, Campbell’s beverage portfolio remains
well positioned.”

Increased Innovation To Drive Growth in Baked Snacks

Mark Alexander, President North America Baking and Snacking and Chief
Customer Officer, described growth plans for Campbell’s businesses that
compete in the $95 billion global baked snacks market:

  • Increase momentum in the core crackers business with a focus on
    “Goldfish” in North America and “Shapes” crackers in Asia Pacific
    through increased marketing.
  • Drive growth in fresh bread through continued premium innovation and a
    focus on health and wellness trends.
  • Significantly increase R&D investments to drive innovation and create
    new products across Campbell’s baked snacks business.
  • Accelerate collaboration across geographies, building on the success
    of recent efforts, such as the introduction of “Tim Tam” biscuits in
    the U.S.

Alexander said, “Our baking and snacking business has a track record of
strong financial results, and we see a very promising future for these
businesses based on our leading brands and our investments designed to
drive continued innovation.”

Potential for Soup within Simple Meals

Carl Johnson, Campbell’s Chief Strategy Officer, Larry McWilliams,
President, Campbell International, and Denise Morrison, President North
America Soup, Sauces and Beverages, described the Campbell’s
participation in $421 billion global simple meals category as being in
two broad segments: meal makers, which include products such as
“Campbell’s” condensed cooking soups, “Swanson” broth, “Prego” and
“Pace” sauces and “Domashnaya Klassika” concentrated broths; and meals,
which include products such as “Campbell’s” condensed eating soups and
“Campbell’s Chunky,” “Campbell’s Select Harvest” and “Erasco”
ready-to-serve soups.

Johnson said, “The growth outlook for simple meals is very favorable
with in-home eating at an 18-year high. The breadth of Campbell’s
products used to prepare meals provides us with a competitive advantage
in meal makers, the faster growing segment of the simple meals category.”

McWilliams described key initiatives in meal makers for fiscal 2011
including:

  • Increase marketing efforts of cooking and meal preparation across
    geographies with a focus on easy dinner ideas and other meals.
  • Boost innovation around meal occasions and attract new consumers by
    introducing new products, such as premium sauces and concentrated
    broths, in several markets.
  • Establish businesses in emerging markets such as Russia and China.

McWilliams said, “We see enormous potential for soup within simple meals
across meal occasions, geographies and consumer needs, and we plan to
increase our participation in the global meal makers category.”

Morrison described Campbell’s plans for soup in fiscal 2011. As
previously announced, Campbell will reposition its U.S. condensed soup
line with enhanced ingredients, improved taste, more contemporary
packaging and further sodium reduction. Other initiatives include:

  • Improve the competitiveness of the U.S. ready-to-serve soup business
    through product enhancements, new varieties, competitive pricing and
    promotions and improved marketing. Outside the U.S., Campbell will
    focus on its ready-to-serve business in Australia, Belgium, Canada,
    France and Germany.
  • Expand soup as a meal in emerging geographies and channels by
    launching and testing ready-to-serve soups in several markets.
    Campbell also will work to grow the fresh soup category and expand
    distribution in restaurants, schools and other out-of-home locations.
  • Increase innovation by extending sodium reduction leadership and
    leveraging expertise in vegetable nutrition to introduce new products.

Morrison also described Campbell’s plans to introduce an umbrella
advertising campaign to reposition “Campbell’s” soup in simple meals and
support its entire U.S. soup portfolio. This effort will combine the
budget of Campbell’s U.S. soup brands and deliver an integrated campaign
with spending levels well above $100 million.

Morrison said, “Soup provides great value, variety and versatility
compared to other options consumers have for lunch and dinner. Campbell
will continuously remind people of all the amazing things soup can do.”

Campbell’s Chief Financial Officer and Chief Administrative Officer
Craig Owens closed the meeting by saying, “We intend to deliver
sustainably good performance in our primary businesses and plan to grow
them over the long term by broadening our innovation, increasing
marketing support for our leading brands, fully establishing our
businesses in emerging markets and pursuing a disciplined approach to
acquisitions that will complement our existing portfolio.”

About Campbell Soup Company

Campbell Soup Company is a global 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” and “V8.” 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 www.campbellsoup.com.

Forward Looking Statement

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 risks associated with
portfolio changes; (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
Anthony Sanzio (Media)
(856) 968-4390
or
Jennifer Driscoll (Analysts)
(856) 342-6081