DealZone

Campbell Soup stays close to home

March 16, 2009

Don’t expect Campbell Soup Co to take advantage of its relative strength — and the weakness of some competitors

Speaking at the Food & Agriculture Summit in Chicago, Campbell Chief Executive Douglas Conant said “we only want to compete in some narrow areas. We only want to compete in geographies that we exist. Staying close to home will take you a long way.”

Conant said there are very few good properties available since assets bought by private equity are still tied up by those firms, and carving out a brand from a larger company is difficult.

“We’re not interested in buying a troubled asset,” Conant said.

Campbell previously sold off some assets in the United Kingdom and Ireland. It sees Russia and China as a leading growth opportunity to expand on its own. Conant said there are no assets to buy in those markets since most food consumption comes from homemade soup.

The company plans to spend about 10 cents a share to expand into those new markets, where it expects to be profitable in the next five years.

“We still know how to make soup and we can add a lot to that,” Conant said.

Comments
2 comments so far | RSS Comments RSS

Markets that are cold should have soup.

Posted by Jessica | Report as abusive
 

We no longer appear to be able to buy Campbells Soups in the local shops/supermarkets here in Nailsea Somerset U.K.
Have the Company changed name or ceased production.Roger

 

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