.....selling int'l food and the 'fresh' food division.....


Campbell Soup plans to sell international and fresh food businesses, remains 'open' to sale

•Campbell Soup reveals its plans to turnaround the company after announcing a top-to-bottom strategic review in May.
•The company is selling its fresh food business, including Bolthouse Farms, as well as its Arnott's and Kelsen brands overseas.
•Activist shareholder, Dan Loeb is calling for Campbell to sell itself.

....Campbell Soup said Thursday it is selling its international and fresh foods businesses as the 149-year-old condensed soup maker struggles to regain its financial footing and refocus on its signature packaged foods.

The company is unwinding efforts by former CEO Denise Morrison to branch into healthier and more fresh foods to refocus on product lines it knows well — snacks, meals and beverages. Morrison's surprise departure was announced in May when the company said it was conducting a top-to-bottom review of its holdings after releasing what executives called "unacceptable" earnings.

Shares of Campbell lost as much as 5 percent in premarket trading Thursday but regained much of the lost ground. The company on Thursday also announced better-than-expected quarterly earnings but disappointing revenue.

The board considered a "full slate of strategic options, including optimizing the portfolio, divesting businesses, splitting the company, and pursuing a sale," Campbell's interim CEO Keith McLoughlin said in a statement. The board concluded that the " best path forward" is to "focus the company on two core businesses in the North American market," he added.

McLoughlin didn't take a sale completely off the table, adding that Campbell "remains open and committed to evaluating all strategic options to enhance value in the future."

The company, which also makes SpaghettiOs, Prego sauces and Goldfish snacks, said it was also raising its overall cost savings target to $945 million by fiscal 2022.


Unwinding fresh foods

Campbell has been grappling with waning demand for its classic soup as consumers opt for healthier food. But fresh foods, including the carrots and smoothies that it's been trying to produce, are less profitable and harder to manage for the soup giant. The company's shares have fallen 20 percent during the past year.

The sales of Campbell's fresh food business, which includes Bolthouse Farms, as well as its overseas brands Arnott's and Kelsen will help pay down the debt left behind from from its $6.1 billion acquisition of pretzel maker Snyder's Lance earlier this year. CNBC previously reported the company was looking at selling the units to pay down debt.

The acquisition of Snyder's more than tripled Campbell's debt burden to $9.6 billion at the end of the most recent quarter, from $3.1 billion a year earlier. It was one of a series of deals in the past year in which a food giant paid a big price to buy one of the few food brands that are both growing and big enough to make a dent.

Moody's Investors Service cited the company's high leverage ratio as a problem and questioned its ability to pay down that debt when the ratings company placed Campbell's bonds on review for a possible downgrade in May.

The fresh food unit posted an operating loss of $7 million this quarter, still less than its $8 million loss the prior year.

Brands like Bolthouse Farms could attract interest from both private equity buyers and companies that have more experience managing fresh food, according to people in the industry.

Australian biscuit brand Arnott's may similarly attract both private equity firms and corporate buyers. It could command a price tag of roughly $2 billion, say those people.


Third Point pressure

The potential divestitures are likely to do little to appease activist investor Dan Loeb's Third Point, which recently disclosed a 5.65 percent stake in the company and called a sale of the business the "only justifiable outcome" of its review. The activist is teaming up with shareholder George Strawbridge, a descendant of founder John P. Dorrance, to call for the sale.

Strawbridge had his own stint on the Campbell board, on which he served from 1988 to 2009. A businessman in his own right with ventures that include a stake in the NHL's Buffalo Sabres, Strawbridge was active and quizzical while on the board, according to a person who sat in on the meetings.

For Third Point to agitate for a sale, it would need to win over enough support from the family. The descendants of Dorrance — the man many say invented condensed soup — have multiplied across many different clans over the years, and they weren't all in agreement over whether to sell, sources have told CNBC.

Mary Alice Dorrance Malone is Campbell's largest shareholder, with a 17.7 percent stake in the company. Her brother, Bennett Dorrance, has a 15.4 percent stake. Other descendants hold a combined 7.9 percent of the company in the Campbell Soup voting trust.

Without a sale, Loeb and Strawbridge may push for a full turnover of the Campbell board, all of whom come up for re-election this year.

"Only a reconstituted board, free of the need to defend past actions and other legacy issues, will be able to objectively explore all strategic alternatives, including a sale of [Campbell] or other business combination, that would substantially increase the value of the [Campbell's] shares," wrote Strawbridge in a recent filing.

Doing so could mean the ouster of the three soup heirs from the board: Bennett, Mary Alice and their nephew Archie Van Buren. Van Buren is the only one who has worked at the company for a prolonged period, giving him unique insight into its business.


fresh prince........of bel air...........?!

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I reject your reality and substitute my own!



Edited 2 time(s). Last edit at 08/30/2018 11:06AM by NewtonMP2100.

At the same time, the market for bone broth is booming....looks like a classic example of ignoring what the market wants.

IMHO, they should have made their soups healthier, instead of running after the fresh food aspect.

If they'd paid attention 20 years ago to people saying their soups were inedibly salty, and not charging EXTRA for the "Reduced Sodium versions", maybe they wouldn't be in such a predicament.

I used some Campbells cream of mushroom to make a casserole last year, and it was INEDIBLE - too salty even for ME, and I LIKE salty! I eat salt and vinegar chips and like them. When I say something is too salty, there is something desperately wrong with a product.

And I agree with Anonymouse1... we have a "bone broth" craze, and Campbells has completely ignored it, and turns out inedibly salty canned broth that had a piece of meat waved over the vat once or twice.

Get with the times, if you still have time before bankruptcy, or you earned your demise - sad to say.

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
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Eureka, CA

I agree Paul. They have the brand name recognition and the infrastructure, they just need to adjust and reformulate much of their product line. Not major changes, just make them relevant to modern palates.

I'm a fan of salt in select instances (french fries for one, LOL).

I had a similar gripe with another Campbell product— V8 tomato/whatever juice.

It was/is way too salty for me. I have no idea why they think that's a good thing. Even though fast food burger places sell soft drinks by selling salted food, most all have cut back on its use. Except for 'seasoned fries' I have to ask for salt.

'Wow, I almost had a V8! That was close.'

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I am that Masked Man.

All you can do, is all you can do.

There’s trouble — it's time to play the sound of my people.

Your boos mean nothing to me, I've seen what you cheer for.

Insisting on your rights without acknowledging your responsibilities isn’t freedom, it’s adolescence.

I've been to the edge of the map, and there be monsters.

We are a government of laws, not men.

Everybody counts or nobody counts.

When a good man is hurt,
all who would be called good
must suffer with him.

You and I have memories longer than the road that stretches out ahead.

There is no safety for honest men except
by believing all possible evil of evil men.

We don’t do focus groups. They just ensure that you don’t offend anyone, and produce bland inoffensive products. —Sir Jonathan Ive

An armed society is a polite society.
And hope is a lousy defense.

You make me pull, I'll put you down.

I *love* SIGs. It's Glocks I hate.

Sheesh, they racked up a lot of debt purchasing what became their fresh food division that hasn’t performed as expected. The CEO responsible is gone and a group of investors is screaming for some $$$$$.
A division sale should pacify them .
The whole company is not failing.

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I think I had some Boathouse salad dressing that wasn't bad in a pinch. Do my own broth.

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“There comes a point where we need to stop just pulling people out of the river. We need to go upstream and find out why they’re falling in."

Ok, bfd's post and some little grey cells hanging on for dear life reminded me one of my favorite lunches was Campbell's Tomato soup and grilled cheese sandwiches.

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I am that Masked Man.

All you can do, is all you can do.

There’s trouble — it's time to play the sound of my people.

Your boos mean nothing to me, I've seen what you cheer for.

Insisting on your rights without acknowledging your responsibilities isn’t freedom, it’s adolescence.

I've been to the edge of the map, and there be monsters.

We are a government of laws, not men.

Everybody counts or nobody counts.

When a good man is hurt,
all who would be called good
must suffer with him.

You and I have memories longer than the road that stretches out ahead.

There is no safety for honest men except
by believing all possible evil of evil men.

We don’t do focus groups. They just ensure that you don’t offend anyone, and produce bland inoffensive products. —Sir Jonathan Ive

An armed society is a polite society.
And hope is a lousy defense.

You make me pull, I'll put you down.

I *love* SIGs. It's Glocks I hate.

I live on low-sodium V8... thankfully no upcharge over regular V8... it's a good source of soluble potassium.
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....Campbell gets you twice with the low sodium soup......1) it cost more 2) the size is smaller then the high sodium soups.........

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_____________________________________

I reject your reality and substitute my own!

Quote
RAMd®d
Ok, bfd's post and some little grey cells hanging on for dear life reminded me one of my favorite lunches was Campbell's Tomato soup and grilled cheese sandwiches.

Isn't that everyones favorite lunch at one point or another? I mean, tomato soup, and grilled cheese! There's no wrong there...

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Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
--

--

--
Eureka, CA

Still is one of our favorite meals in a pinch. grilled cheddar panini and Cambell's Tomato soup. Also have maybe 4 cans of chicken noodle soup for when the nice lady who puts up with my crap gets sick.

Their soup is good.

You have to add a lot of salt though. Otherwise it's kind of bland.

They messed with Bolthouse Farms.

Had some good stuff to start with.

Now, everything they sell under that brand is just flavored sugar-water. Might as well be drinking soda.

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I can't remember the last time I had Campbell's Soup as soup, other than that it was sometime in the mid 1960's. The last time I used Campbell's Soup was in the mid 1970's using their Cheddar Cheese Soup in a dip. While I very robustly support their juice division, I'm clearly not helping their soup division.
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Quote
Buzz
I can't remember the last time I had Campbell's Soup as soup, other than that it was sometime in the mid 1960's. The last time I used Campbell's Soup was in the mid 1970's using their Cheddar Cheese Soup in a dip. While I very robustly support their juice division, I'm clearly not helping their soup division.
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Their tomato soup is still excellent, especially with a bit of 2nd day rice and a touch of whole milk.

They also have a new line of (allegedly) more healthful soups called "Well-Yes" (which is probably a play on "wellness," but the label makes it look like the name of the brand is just "Yes" with the word "well" randomly placed above it.) Some of these soups are surprisingly tasty. The "Black Bean" could pass for a good chili and is great over eggs or with a spoonful of creme fraiche.

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Isn't that everyones favorite lunch at one point or another? I mean, tomato soup, and grilled cheese! There's no wrong there...

I first had the combo as a school lunch in elementary school.

I recall a lot of kids didn't like tomato soup. I wasn't a fan either until I dipped the grilled cheese into the soup. That was terrific.

Time to stop by the store for some soup!

---

I am that Masked Man.

All you can do, is all you can do.

There’s trouble — it's time to play the sound of my people.

Your boos mean nothing to me, I've seen what you cheer for.

Insisting on your rights without acknowledging your responsibilities isn’t freedom, it’s adolescence.

I've been to the edge of the map, and there be monsters.

We are a government of laws, not men.

Everybody counts or nobody counts.

When a good man is hurt,
all who would be called good
must suffer with him.

You and I have memories longer than the road that stretches out ahead.

There is no safety for honest men except
by believing all possible evil of evil men.

We don’t do focus groups. They just ensure that you don’t offend anyone, and produce bland inoffensive products. —Sir Jonathan Ive

An armed society is a polite society.
And hope is a lousy defense.

You make me pull, I'll put you down.

I *love* SIGs. It's Glocks I hate.

Quote
Sarcany

Quote
Buzz
I can't remember the last time I had Campbell's Soup as soup, other than that it was sometime in the mid 1960's. The last time I used Campbell's Soup was in the mid 1970's using their Cheddar Cheese Soup in a dip. While I very robustly support their juice division, I'm clearly not helping their soup division.
==

Their tomato soup is still excellent, especially with a bit of 2nd day rice and a touch of whole milk.

They also have a new line of (allegedly) more healthful soups called "Well-Yes" (which is probably a play on "wellness," but the label makes it look like the name of the brand is just "Yes" with the word "well" randomly placed above it.) Some of these soups are surprisingly tasty. The "Black Bean" could pass for a good chili and is great over eggs or with a spoonful of creme fraiche.

Don't know anything about their "healthy" line of soups, and while it's been half a century since actually souping on their famous red and white canned soups, I will admit to imbibing on their 'Chunky' line of soups as recently as the early 1990's, without regard to its healthiness, if any... but come to think of it, that's about when I started on their low-sodium V8, which was strictly for its healthiness. May have to try, or at least look into that new healthy stuff; even though I haven't been a good soup customer, I've always liked Campbell's as a good American company, though Warhol immortalized a lot of things I liked...
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Seeing a Campbell’s soup can always makes me think of Andy.

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