Campbell Soups – The Market Leaders in Manufacturing and Marketing Soups

Introduction

The Campbell Soup Company is the largest manufacturing and marketing business house of canned soups and other related products in the USA. It has been reported that the company operates in more than 120 countries and has been trading in the New York stock Exchange. The headquarters of the company is situated in Camden, New Jersey. Apart from Campbell’s, the brand also owns and trades under various brands such as Erasco, Pepperidge Farm, Arnott’s, Pace and Royco. Due to the scope of this report, the article would pertain to businesses related only to soups. (Pieper, 177-194)

Food Products

Under the soup segment, the Campbell soup Company produces and markets various types of healthy, nutritious soups. The most popular selections are cream and mushroom, chicken noodle and tomato soups. All the above soups are available in other variants such as Campbell’s lower sodium soups, select harvest soups, kid’s soups, chunky soups, microwavable soups and condensed soups. Apart from the above, the company also produces and markets other food products such as pasta, cookies, crackers et al that are marketed under the aforementioned brands. The company is also one of the largest producers and marketers of juice beverages and snacks, sauces and biscuits. The company’s brand Arnott’s biscuits are quite a rage down under in Australia. (NYT, 1)

History of the Company

The company was first set up by Joseph A Campbell and Abraham Anderson in 1869 and was originally known as the Joseph a Campbell Preserve company. After Anderson left in 1896, Joseph along with one of his nephews Dr. John T Dorrance started the Joseph A Campbell & Co. in 1897. It was due to the efforts of Dorrance, a talented chemist and an MIT graduate that condensed soups produced and marketed by Campbell’s, became so popular. In the year 1900, the product had competed and won a gold medal at the Paris Exposition and the image of that accomplishment is still etched on the cans.

The company grew to newer heights under the leadership of William Beverly Murphy. In 1949, he was elected as the vice president of the company and operated as both president and CEO of the company from 1953 to 1972. He was instrumental in making the companies go public and acquired other brands such as Pepperidge Farm’s, Franco American, V8, Swanson and Godiva’s. By doing so, he ventured into other markets such as crackers, vegetable juices, chocolates, cookies, bread and pasta. In 2008, the company acquired Wolfgang Puck soups business owned by Country Gourmet Foods. In 2007, the company was awarded a Certificate of Excellence for their efforts to minimize sodium content in their packaged foods by Blood Pressure Canada. (Answer, 1)

Financial Overview

In the fiscal year, which ended on July 2008, the company registered a sale of 7,998.0 million usd, and a growth of 1.7 percent in the current year. The net income was calculated to 1,165.0 million usd reflecting an income growth of 36.4 percent. The balance sheet, cash flow and income statements for the last fiscal year are attached with the appendix to help investors and shareholders in their future dealings in the company. The company employs 19,400 people as of July 2008 and has registered an employee growth of 13.8 percent. (Answer, 1)

Contact Details

Interested investors, consumers and suppliers may contact the company by mail at the following address:

Campbell Soup Company
1 Campbell Place Camden,
NJ 08103-1799,
NJ Tel. 856-342-4800,
Toll Free 800-257-8443,
Fax 856-342-3878.

Interested parties may also log on to www.campbellsoupcompany.com or www.campbellsoup.com to know more about the company and its range of products.

Key Officials

  • CEO, President and Director: Douglas R Conant
  • Chairperson: Harvey Golub
  • President, Campbell International: Larry S. McWilliams
  • President, Asia Pacific: Mark Alexander
  • Senior Vice President, Public affairs: Jerry S. Buckley
  • President, Pepperidge Farm: Patrick J. Callaghan
  • President, Emerging Markets: Chris Delaney
  • Senior Vice President, Global Research, Development, and Quality: George Dowdie
  • Senior Vice President, Chief Strategy Officer: M. Carl Johnson, III
  • Senior Vice President, Law and Government Affairs: Ellen Oran Kaden (Campbellsoupcompany, 1)

Competitors

Even though the company is the leading player in the market, it does face competition from other firms such as Heinz, General Mills and Kraft Foods, ConAgra industries, and Nestle. The most important of them is Heinz or H.J.Heinz Company.

Heinz’s Business Structure and Products

Though ketchup happens to be the flagship product of the company, it produces condiments, sauces, frozen foods, beans, infant food, pasta meals and several processed food items. The principal brands of the company include the previously mentioned ketchup, Boston Market, Lea & Perrins sauces, Ore-Ida frozen potatoes, Weight Watchers foods and T.G.I. Friday’s. (Answer, 1)

Financial Overview

In the fiscal year, which ended on April 2008, the company registered a sale of 10,070.8 million usd, and a growth of 11.9 percent in the current year. The net income was calculated to 844.9 million usd reflecting an income growth of 7.5 percent. The number of employees in the company is 32,500 as of April 2008 reflecting an employee growth rate of 1.5 percent. (Answer, 1)

Key Officials

  • The Chairman, President and CEO: William R. Johnson
  • Executive Vice President and CFO: Arthur B. (Art) Winkle black

Nestle’s Business Structure and Products

This company is a leading producer of food, dealing mainly with frozen and packaged foods such as soups. The soup segment is represented by the company’s other well-known brand Maggi which also markets and produces other eatables such as instant noodles. Even though Maggi has good market, presence it is still not sufficient to threaten the market share of Campbell’s. Nestle is also an international brand and trades in a number of countries. It would be prudent to note that the company has a major market presence in emerging markets such as India where Campbell does not have enough presence. This can be a cause for concern because larger economies such as India and China have been virtually untapped by Campbell’s but Nestle is doing brisk business there. (Answer, 1)

Financial Overview

In the fiscal year, which ended on December 2007, the company registered a sale of 95,463.2 million usd, and a growth of 18.3 percent in the current year. The net income was calculated to 10,102.7 million usd reflecting an income growth of 25.1 percent. The number of employees in the company is 276,000 reflecting an employee growth rate of 4.2 percent. (Answer, 1)

Key Officials

  • The Chairman: Peter Brabeck-Letmathe
  • Executive Vice President, CTO, and Head of Innovation, Technology, and Research and Development: Werner J. Bauer
  • CEO: Flavorings, Spices & Other Ingredients

Even though the above companies are market leaders in their own right, they are all placed after Campbell’s in the soup segment and a company, which has great historical and moral standards. (Answer, 1)

Works Cited:

Answer; Campbell soup company; www.answers.com; 2008; Web.

Answer; Heinz; www.answers.com; 2008; Web.

Answer; Data; www.answers.com; 2008; Web.

Answer; Nestle; answers.com; 2008; Web.

Campbellsoupcompany; Executive Team; campbellsoupcompany.com; 2008; Web.

NYT; Campbell soup company; nytimes.com; 2008; Web.

Pieper, Joy Rickman & Diane M Barrett; Effects of organic and conventional production systems on quality and nutritional parameters of processing tomatoes; Journal of the Science of Food and Agriculture; Volume 89, Issue 2, 2009, Pages: 177-194

Appendixes

  1. Quarterly Income statements for 2008 for Campbell’s
  2. Quarterly Balance sheet for 2008
  3. Quarterly Cash flow statements for 2008

Appendix 1

Income statement: Quarterly Financials for Campbell Soup Company
All amounts in millions of USD except per share amounts.
Q1 Q4 Q3 Q2
10/2008 07/2008 04/2008 01/2008
Operating Activities
Operating Revenue 2250 1715 1880 2218
Total Revenue 2250 1715 1880 2218
Adjustment to Revenue 0 0 0 0
Cost of Sales 1313 965 1084 1259
Cost of Sales with Depreciation 1379 1051 1154 1329
Gross Margin 0 0 0 0
Gross Operating Profit 937 750 796 959
R&D 29 33 30 25
SG&A 447 431 442 460
Advertising 0 0 0 0
Operating Profit 0 0 0 0
Operating Profit before Depreciation (EBITDA) 461 286 324 474
Depreciation 66 86 70 70
Depreciation Unreconciled 0 0 0 0
Amortization 0 0 0 0
Amortization of Intangibles 0 0 0 0
Operating Income After Depreciation 395 200 254 404
Interest Income 0 8 0 0
Earnings from Equity Interest 0 0 0 0
Other Income, Net 4 -9 0 -4
Income Acquired in Process R&D 0 0 0 0
Interest Restructuring and M&A 0 -3 -172 0
Other Special Charges 0 0 0 0
Total Income Avail for Interest Expense (EBIT) 399 196 82 400
Interest Expense 32 46 37 42
Income Before Tax (EBT) 367 150 45 358
Income Taxes 107 61 -9 98
Minority Interest 0 0 0 0
Preferred Securities of Subsidiary Trust 0 0 0 0
Net Income from Continuing Operations 260 89 54 260
Net Income from Discontinued Ops. 0 0 478 14
Net Income from Total Operations 260 89 532 274
Extraordinary Income/Losses 0 0 0 0
Income from Cum. Effect of Acct Chg 0 0 0 0
Income from Tax Loss Carry forward 0 0 0 0
Other Gains (Losses) 0 0 0 0
Total Net Income 260 89 532 274
Normalized Income 260 92 226 260
Net Income Available for Common 260 89 54 260
Preferred Dividends 0 0 0 0
Excise Taxes 0 0 0 0
Per Share Data
Basic EPS from Continuing Ops. 0.73 0.26 0.14 0.69
Basic EPS from Discontinued Ops. 0 0.01 1.28 0.04
Basic EPS from Total Operations 0.73 0.27 1.42 0.73
Basic EPS from Extraordinary Inc. 0 0 0 0
Basic EPS from Cum Effect of Accounting Chg 0 0 0 0
Basic EPS from Other Gains (Losses) 0 0 0 0
Basic EPS Total 0.73 0.27 1.42 0.73
Basic Normalized Net Income/Share 0.73 0.27 0.59 0.69
Diluted EPS from Continuing Ops. 0.71 0.25 0.14 0.67
Diluted EPS from Discontinued Ops. 0 0.02 1.25 0.04
Diluted EPS from Total Operations 0.71 0.27 1.39 0.71
Diluted EPS from Extraordinary Inc. 0 0 0 0
Diluted EPS from Cum Effect of Accounting Chg 0 0 0 0
Diluted EPS from Other Gains (Losses) 0 0 0 0
Diluted EPS Total 0.71 0.27 1.39 0.71
Diluted Normalized Net Income/Share 0.71 0.26 0.59 0.67
Dividends Paid per Share 0.22 0 0.22 0.22
Additional Data
Basic Weighted Shares Outstanding
Diluted Weighted Shares Outstanding 3650 3810 3810 3860
Last updated: 2009-02-07 22:40:23

Appendix 2

Balance Sheet: Quarterly Financials for Campbell Soup Company

All amounts in millions of USD except per share amounts.

Q1

Q4

Q3

Q2

10/2008 07/2008 04/2008 01/2008
Assets
Cash and Equivalents 63 81 50 95
Restricted Cash 0 0 0 0
Marketable Securities 0 0 0 0
Accounts Receivable 784 570 655 813
Loans Receivable 0 0 0 0
Other Receivable 0 0 0 0
Receivables 784 570 655 813
Raw Materials 350 338 272 264
Work In Progress 0 0 0 0
Purchased Components 0 0 0 0
Finished Goods 546 491 394 471
Other Inventories 0 0 0 0
Inventories -Ad Allowances 0 0 0 0
Inventories 896 829 666 735
Prepaid Expenses 0 0 0 0
Current Deferred Income Taxes 0 0 0 0
Other Current Assets 173 213 239 235
Total Current Assets 1916 1693 1610 1878
Gross Fixed Assets (Plant, Prop. & Equip.) 4603 4766 4659 4697
Accumulated Depreciation & Depletion 2827 2827 2767 2767
Net Fixed Assets 1776 1939 1892 1930
Intangibles 548 605 615 633
Cost in Excess 1669 1998 2009 1933
Non-Current Deferred Income Taxes 0 20 0 0
Other Non-Current Assets 287 219 381 502
Total Non Current Assets 4280 4781 4897 4998
Total Assets 6196 6474 6507 6876
Liabilities
Accounts Payable 677 655 593 619
Notes Payable 1121 982 349 976
Short Term Debt 0 0 0 0
Accrued Expenses 0 0 0 0
Accrued Liabilities 550 664 613 610
Deferred Revenues 0 0 0 0
Current Deferred Income Taxes 0 0 0 0
Other Current Liabilities 91 102 108 155
Total Current Liabilities 2439 2403 1663 2360
Long Term Debt 1635 1633 1767 1780
Capital Lease Obligations 0 0 0 0
Deferred Income Taxes 0 0 399 380
Other Non-Current Liabilities 1051 1120 782 761
Minority Interest 0 0 0 0
Preferred Securities of Subsidiary Trust 0 0 0 0
Preferred Equity outside Stock Equity 0 0 0 0
Total Non-Current Liabilities 2686 2753 2948 2921
Total Liabilities 5125 5156 4611 5281
Stockholder’s Equity
Preferred Stock Equity 0 0 0 0
Common Stock Equity 1071 1318 1896 1595
Common Par 20 20 20 20
Additional Paid In Capital 285 337 327 337
Cumulative Translation Adjustment 0 241 258 200
Retained Earnings 8078 7909 7900 7451
Treasury Stock -6804 -6812 -6370 -6172
Other Equity Adjustments -508 -377 -239 -241
Total Equity 1071 1318 1896 1595
Total Capitalization 2706 2951 3663 3375
Total Liabilities & Stock Equity 6196 6474 6507 6876
Additional Data
Cash Flow 1447 1459 1427 1111
Working Capital -523 -710 -53 -482
Free Cash Flow -98 958 994 190
Invested Capital 2706 2951 3663 3375
Share Data
Shares Outstanding Common Class Only 359.337633 356 369 375
Preferred Shares 0 0 0 0
Total Ordinary Shares 0 0 0 0
Total Common Shares Outstanding 359.337633 356 369 375
Treasury Shares 186 186 173 167
Last updated: 2009-02-07 22:40:23

Appendix 3

Cash Flow: Quarterly Financials for Campbell Soup Company

All amounts in millions of USD except per share amounts.

Q1

Q4

Q3

Q2

10/2008 07/2008 04/2008 01/2008
Operating Activities
Net Income (Loss) 260 1165 1076 544
Depreciation 0 0 0 0
Amortization 0 0 0 0
Amortization of Intangibles 0 0 0 0
Deferred Income Taxes 29 29 -41 21
Operating (Gains) Losses 13 -477 -652 -17
Extraordinary (Gains) Losses 0 0 0 0
(Increase) Decrease in Receivables -260 -53 -68 -241
(Increase) Decrease in Inventories -118 -91 81 3
(Increase) Decrease in Prepaid Expenses 11 -22 -14 18
(Increase) Decrease in Other Current Assets 0 0 0 0
(Increase) Decrease in Payables -3 23 -127 -50
(Increase) Decrease in Other Curr Liabs. -38 0 0 0
(Increase) Decrease in Other Working Capital 0 -190 -116 0
Other Non-Cash Items 25 88 227 26
Net Cash from Continuing Operations -15 766 574 442
Net Cash from Discontinued Operations 0 0 0 0
Net Cash from Operating Activities -15 766 574 442
Investing Activities
Sale of Property, Plant, Equipment 0 3 2 2
Sale of Long Term Investments 0 0 0 0
Sale of Short Term Investments 0 0 0 0
Purchase of Property, Plant, Equipment -35 -298 -154 -90
Acquisitions 32 819 820 0
Purchase of Long Term Investments 0 0 0 0
Purchase of Short Term Investments 0 0 0 0
Other Investing Changes Net 0 7 7 2
Cash from Disc. Investing Activities 0 0 0 0
Net Cash from Investing Activities -3 531 675 -86
Financing Activities
Issuance of Debt 436 58 0 60
Issuance of Capital Stock 62 47 30 19
Repayment of Debt -300 -181 -624 -40
Repurchase of Capital Stock -114 -903 -435 -203
Payment of Cash Dividends -80 -329 -246 -162
Other Financing Charges, Net 15 8 6 4
Cash from Disc. Financing Activities 0 0 0 0
Net Cash from Financing Activities 19 -1300 -1269 -322
Effect of Exchange Rate Changes -19 13 13 8
Net Change in Cash & Cash Equivalents -18 10 -7 42
Cash at Beginning of Period 81 71 57 53
Cash at End of Period 63 81 50 95
Last updated: 2009-02-07 22:40:23

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NerdyRoo. "Campbell Soups – The Market Leaders in Manufacturing and Marketing Soups." December 5, 2021. https://nerdyroo.com/campbell-soups-the-market-leaders-in-manufacturing-and-marketing-soups/.

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NerdyRoo. 2021. "Campbell Soups – The Market Leaders in Manufacturing and Marketing Soups." December 5, 2021. https://nerdyroo.com/campbell-soups-the-market-leaders-in-manufacturing-and-marketing-soups/.

References

NerdyRoo. (2021) 'Campbell Soups – The Market Leaders in Manufacturing and Marketing Soups'. 5 December.

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