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Case Details

Case Code: BSTR556
Case Length: 21 Pages 
Period: 2015-2018   
Pub Date: 2018
Teaching Note: Available
Price: Rs.500
Organization : Campbell Soup Company
Industry : Food and beverage
Countries : United States
Themes: Strategic Management/Business Economics/ Business Environment
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Human Resource Management
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Campbell Soup Company in Trouble

 
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EXCERPTS

MORRISON – LEADING REINVENTION AT CAMPBELL’S FRESH BUSINESS

 

Campbell’s, an icon of traditional American processed food, was highly popular and in the 1960s, American Pop artist Andy Warhol celebrated the company’s soup cans as a symbol of manufactured pop culture. However, the company could not sustain its iconic stature over the next few decades, and by the turn of the century, it was facing significant challenges. Douglas R. Conant, the CEO from 2001 to 2011, could not do much to revive the company. In 2011, Morrison became the company’s first female CEO...

 
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IN THE SOUP

Campbell’s was concerned about its decreasing sales in the challenging retail environment. Since 2013, the demand for packaged fresh food had grown at a compounded 5.4% a year, as against 1.4% for shelf-stable food. “The operating environment for the packaged foods industry remains challenging due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviors and the dynamic retailer landscape. In these times, sales growth remains a challenge,” Morrison said in a statement..
 

STRATEGIC REORGANISATION

In April 2018, Campbell’s announced a more noticeable move to accelerate innovation — a strategic reorganization of the company to better position the business to drive growth in the fast-growing food categories, including Campbell Fresh. “This strategic reorganization—focused on our core, the integration of recent acquisitions, the Campbell Fresh turnaround, and long-term growth—provides the right structure for us to optimize the value of our businesses today, while creating future-oriented capabilities. It will simplify our operations, improve our execution and enable us to allocate resources with a greater focus on profitable growth,” Morrison said...
 

ROAD AHEAD

Despite all its efforts to reorganize and restore its fresh-food business, Campbell’s still faced a lot of criticism.The Snyder deal raised integration issues for Campbell’s and its stock remained a laggard in a rising market. Based on the company’s third-quarter results and outlook for the balance of the year, including impact of the Snyder’s-Lance acquisition, Campbell’s lowered its fiscal 2018 earnings guidance, projecting a 5% to 6% decline instead of its earlier forecast of a 1% to 3% decline in the full-year earnings per share (See Exhibit XIII for Fiscal 2018 Earnings Guidance). ..
 

EXHIBITS

Exhibit I:Campbell’s Real Food Philosophy
Exhibit II: Different Business Divisions of Campbell’s
Exhibit III: America’s Most Loved Brands (2018)
Exhibit IV: Snyder’s-Lance deal of Campbell’s (Net debt/adjusted Ebitda)
Exhibit V: Campbell’s Biggest Deals for Healthier and Fresher Foods
Exhibit VI: Ranking of America’s Top Ten Most Reputable Companies 2018
Exhibit VII: Revenue from Sales at Campbell (2015-2017)
Exhibit VIII: Campbell’s First Quarter Results for Fiscal 2018
Exhibit IX: Campbell’s Performance in Second Quarter for Fiscal 2018
Exhibit X: Campbell’s Consolidated Statements of Earnings (unaudited)
Exhibit XI: Campbell’s Condensed Consolidated Balance Sheet (unaudited)
Exhibit XII: Accelerator Unit of Campbell’s
Exhibit XIII: Campbell’s Fiscal 2018 Earnings Guidance