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Campbell Soup Company: A Multibillion Dollar Enterprise

Updated on May 28, 2015

Real Food that Matters for Life’s Moments!

Campbell Soup Company is based in Camden, New Jersey. The company’s sales top $8 billion annually and its product range includes everything from beverages to snacks, meals and of course soups. People tend to trust this brand since it harkens back to times of pleasant memories, warm connections between friends and family, top-quality foods and more. Among the many products in the range are Goldfish crackers, Pepperidge Farm cookies, Royal Dansk biscuits, Kjedsens, Bolthouse Farms beverages, Plum organic baby food, Pace Mexican sauce, Prego pasta and more. The Campbell’s brand of products is valued at an estimated $2.1 billion.

Campbell’s Sustainable Growth Policy

The current Chief Executive Officer of Campbell is Denise Morrison. She has been hard at work implementing a sustainable growth strategy. At the same time, there has been enhanced shareholder value by way of expansion into premium-growth sectors and strengthening of core business operations. Campbell has also expanded into new segments, territories and channels. The central focus of Campbell’s is soup, but the company also focuses its efforts on children’s meals, fresh foods and new geographic regions like Indonesia and China.

In terms of its environmental scorecard, Campbell’s has taken great strides in multiple areas. These include water use, energy use, investments, waste, GHG, Scope 3 Emissions, and Progress. The company’s water use per tonne of food produced in 2013 is 2.6% less than it was in 2012 (down from 8.72 Cu.Meter to 8.49 Cu.Meter). With respect to energy use, the 2013 figures were 3.16 mmbtu from 3.269 mmbtu in 2012. Greenhouse Gas Emissions (GHG) for 2013 were 0.26 mmtCO2, down from 0.28 mmtCO2 in 2012.

Waste disposal for 2013 was down 13.3% to .013 tonnes from .015 tonnes in 2012. While Campbell’s investments in sustainability and compliance declined from 2012 to 2013 ($18.6 million to $16 million) there have been substantial investments in this regard. Scope 3 Emissions increased from 2012 (11,343 mtCO2) to 11,704 (mtCO2) in 2013. And overall since 2009, Campbell’s has saved over 5 billion gallons of water.

Vintage 1953 Campbell's Soup Commercial - Mother Knows Best

How is Campbell’s Doing on the Social Scorecard?

Ever since 2010, the supplier diversity spend has been steadily increasing. From a low of $119 in 2010 the figure increased to $161 in 2013. In terms of women in the global workforce, Campbell’s has maintained a healthy percentage of 45% from 2010 through 2013. Women in global management positions have also increased from 33% in 2010 to 36% in 2013. The lost-day case rate at Campbell’s has decreased from 0.36 in 2010 to 0.31 in 2013. And the recordable case rate decreased from 2.65 in 2010 to 2.03 in 2013.

When it comes to total charitable giving, Campbell’s has gone above and beyond. The 2010 figure was $37.2 m and the figure for 2013 is $52.6 m. With respect to food or in-kind donations, the 2010 figure was $28.4 m and the 2013 figure was $44 m. One of the areas where Campbell’s has not increased is the tuition assistance paid. In 2010, the figure was $1.1 m, but by 2013 the figure dropped to $1 m. Also with health care expense in the United States, Campbell’s decreased from $116 m in 2010 to $107 m in 2013. Pension expense (United States) increased from $44 m in 2010 to $74.1 m in 2013. 401 (k) retirement plan contributions likewise increased from $18.1 m in 2010 to $27.9 m in 2013.

Campbell’s Healthy Diet Approach

Campbell’s realizes that a healthy diet is essential to managing weight. As such, the company offers multiple products for customers to reduce their caloric intake; manage their weight effectively and eat better. The company offers a gluten-free list of products, with meal plans tailored to individual needs. The products at Campbell’s cover all food groups including whole grains, fiber, gluten free foods and more.

Campbell’s commitment to nutrition and wellness includes a nutrient-based system of labelling known as Facts Up Front. It is offered in tandem with the FDA (Food and Drug Administration) and the USDA (U.S. Dept. of Agriculture). Other initiatives include the National Salt Reduction Initiative, Healthy Weight Commitment Foundation, Labels for Education, Children’s Food & Beverage Advertising Initiative and the Campbell’s Soup Healthy Communities Program.

Campbell’s Stock Chart and Investment Opportunities

Campbell’s stock was last trading at $47.68 (May 26 2015) and has a 52-week high of $48.31 and a 52-week low of $41.15. The company’s market capitalization is $14,937,882,328 and the total number of outstanding shares is 311,790,489. The price/earnings ratio is 19.8228 and the rolling EPS is 2.42. Campbell’s stock is listed on the New York Stock Exchange (NYSE:CPB). Q3 results for the company reflected a decrease of 4% in sales ($1.9 billion), with a drop of 1% in organic sales. EBIT also dropped 2%, while EPS (Earnings Per Share) from continuing operations was on par with the previous year.

With respect to gross margin percentage, there was an increase from 2014. The decline in sales was due to the downside of currency translation. Selling expenses and marketing expenses dropped 2% to a low of $213 million (also due to currency translation). The rising cost of administrative expenses added an additional 5% to the cost structure. With regards to fiscal guidance for 2015, Campbell’s is not expecting anything out of the ordinary. The range of -1% to +1% in sales growth is forecast. EBIT will likely hover in the -7% to -5% range, and earnings per share (EPS) will hover in the $2.32 - $2.38 range.

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