- Press release
, François-Xavier Branthôme
Campbell Soup announced on 30 August its plans to pursue a sale of its international division and its Campbell Fresh unit as the company seeks a turnaround amid declining soup sales and turmoil for the packaged foods industry. The company announced that it would refocus its strategy primarily on the North America market in snacks, meals and beverages. The moves include a plan to sell Bolthouse Farms (healthy drinks) which it acquired in 2012, and Garden Fresh Gourmet brands (hummus and salsa) acquired in 2015 as well as the company's refrigerated soup products. Remaining brands will include the company's namesake soup, as well as Goldfish crackers, Pepperidge Farm cookies, Snyder's of Hanover pretzels and V8 drinks.
Campbell announced significant actions to improve performance and drive shareholder value. The actions include:
• Focusing the company on two distinct businesses, Campbell Snacks and Campbell Meals and Beverages, in its core North American market;
• Pursuing the divestitures of non-core businesses to focus and improve the company’s portfolio; proceeds will be used to significantly reduce debt; and,
• Increasing its cost savings target to USD 945 million by FY2022, including the expected Snyder’s-Lance savings.
Campbell’s interim President and CEO Keith McLoughlin said, “Campbell’s Board of Directors considered a full slate of strategic options, including optimizing the portfolio, divesting businesses, splitting the company, and pursuing a sale. The Board concluded that, at this time, the best path forward to drive shareholder value is to focus the company on two core businesses in the North American market with a proven consumer packaged goods business model. Importantly, the Board remains open and committed to evaluating all strategic options to enhance value in the future”.