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Campbell to Outline New Strategic Direction

Updates Fiscal 2011 Guidance; Provides Annual Guidance for Fiscal 2012

CAMDEN, N.J., Jul 12, 2011 (BUSINESS WIRE) —

Campbell Soup Company (NYSE: CPB) will outline a new strategic
direction today at a meeting with investors led by Chief Operating
Officer Denise Morrison, who will become the company’s President and
Chief Executive Officer on Aug. 1. A web cast of the presentation will
be available at investor.campbellsoupcompany.com.

“During the past nine months, Campbell’s new leadership team has worked
closely with the Board of Directors on a comprehensive strategic review
in which we have examined our business with fresh eyes, and charted a
new course for our company,” Morrison said. “Our central mission and
overarching priority is long-term value creation for our shareholders.
We believe that the strategic transition we are announcing today will
set the stage for a new chapter of profitable net sales growth and
sustainable growth in total shareholder returns.”

Campbell’s new business strategy will focus on expansion of the
company’s category platforms in its three core categories of simple
meals, baked snacks and healthy beverages; consumer-driven innovation in
products and packaging as the primary driver of organic growth; and
expansion of the company’s international presence, particularly in
emerging markets.

Details of the new strategy, and key elements of Campbell’s plans for
beginning to implement its strategic transition in the fiscal year that
will commence on Aug. 1, will be reviewed at the investor meeting by
Morrison and other members of the company’s senior leadership team,
including Sean Connolly, President, Campbell North America; Mark
Alexander, President, Campbell International; Pat Callaghan, President,
Pepperidge Farm; and Craig Owens, Senior Vice President and Chief
Financial and Administrative Officer.

Guidance

The company will update its previous guidance for the current fiscal
year. In fiscal 2011, Campbell now expects net sales to be comparable to
the prior year, a decline in adjusted earnings before interest and taxes
(EBIT)of approximately (2) percent and an increase in adjusted
earnings per share (EPS) of approximately 1 percent from the fiscal 2010
adjusted base of $2.47. This fiscal 2011 guidance excludes the impact of
the recently announced restructuring program.

A detailed reconciliation of the fiscal 2010 adjusted financial
information to the 2010 reported financial information is included at
the end of this news release.

Morrison and Owens will also announce Campbell’s guidance for fiscal
2012. The company expects net sales growth of between 0 to 2 percent, a
decline in adjusted EBIT of between (8) to (6) percent and a decline in
adjusted EPS of between (6) to (4) percent from the fiscal 2011 adjusted
base.

“Implementing our new strategic direction will require substantial
investment to fund our new innovation process, accelerate innovation
across our portfolio and reinvigorate consumer-focused marketing to
expand the equities of important brands,” said Morrison. “Thus, fiscal
2012 will be a year of transition and investment, in which we will build
the foundation for a sustainable, profitable growth trajectory in fiscal
2013 and beyond.”

Over the longer term, Campbell expects to deliver annual sales growth
between 3 and 4 percent, adjusted EBIT growth between 4 and 6 percent
and growth in adjusted net EPS between 5 and 7 percent.

“When you look at Campbell a few years from now, you will see a company
with a broader and stronger flywheel for growth,” Morrison said. “We
will be better balanced across our product portfolios and in our
international footprint, better positioned to compete based on our
impressive brand strengths, and better equipped to respond to the
evolving needs of both our loyal consumer base and other important
consumer groups. We are fully committed to this strategic transition,
convinced that it is the right course for our shareholders and inspired
by the opportunity to lead an exciting new era of growth at Campbell.”

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.

Cautionary Note Regarding Forward-looking Statements

This release contains “forward-looking statements”. Forward-looking
statements can be identified by words such as “anticipates,” “intends,”
“plans,” “believes,” “estimates,” “expects” and similar references to
future periods. Examples of forward-looking statements include, but are
not limited to, statements we make on guidance for fiscal 2011 and 2012
and long-term profitable net sales growth, on our ability to execute our
new business strategies successfully, and on our expectations that we
can accelerate innovation across our portfolio and expand our
international footprint. Forward-looking statements are based on our
current expectations and assumptions regarding our business, our
industry and other future conditions. Forward-looking statements are
subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict. Our actual results may differ materially
from those contemplated by the forward-looking statements. Important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the impact of strong
competitive response to our marketing strategies, risks associated with
trade and consumer acceptance of the company’s initiatives, including
innovation, renovation and new products, the ability to realize
projected cost savings, and the other factors described in “Risk
Factors” in the company’s most recent Form 10-K and subsequent SEC
filings. We undertake no obligation to update these statements to
reflect new information or future events.

Reconciliation of GAAP and Non-GAAP Financial Measures

Fiscal Year Ended Aug. 1, 2010

Campbell Soup Company uses certain non-GAAP financial measures as
defined by the Securities and Exchange Commission in certain
circumstances. These non-GAAP financial measures are measures of
performance not defined by accounting principles generally accepted in
the United States and should be considered in addition to, not in lieu
of, GAAP reported measures.

The company believes that financial information excluding certain
transactions not considered to be part of the ongoing business improves
the comparability of year-to-year results. Consequently, the company
believes that investors may be able to better understand its earnings
results if these transactions are excluded from the results.

Adjusted EBIT

(dollars in millions) 2010
Earnings before interest and taxes, as reported $ 1,348
Restructuring charges (1) 12
Adjusted Earnings before interest and taxes $ 1,360

Adjusted Diluted Net Earnings Per Share

2010
Diluted net earnings per share, as reported $ 2.42
Restructuring charges (1) 0.02
Tax expense from health care legislation (2) 0.03
Adjusted Diluted net earning per share $ 2.47
(1) In 2008, the company announced initiatives to improve operational
efficiency and long-term profitability, including selling certain
salty snack food brands and assets in Australia, closing certain
production facilities in Australia and Canada, and streamlining the
company’s management structure. In 2010, the company recorded
pre-tax restructuring charges of $12 million ($8 million after tax
or $.02 per share) for pension benefit costs related to these
initiatives.
(2) In 2010, the company recorded deferred tax expense of $10 million
($.03 per share) due to the enactment of U.S. health care
legislation in March 2010.

SOURCE: Campbell Soup Company

Campbell Soup Company
Anthony Sanzio (Media)
(856) 968-4390
or
Jennifer Driscoll (Analysts/Investors)
(856) 342-6081