Campbell Soup Company, together with its consolidated subsidiaries, is a global
manufacturer and marketer of high quality, branded convenience food products.
Campbell was incorporated as a business corporation under the laws of New Jersey
on November 23, 1922; however, through predecessor organizations, it traces its
heritage in the food business back to 1869. The company’s principal executive
offices are in Camden, New Jersey 08103-1799.
The company’s operations are managed and reported in four segments: North America
Soup and Away From Home, North America Sauces and Beverages, Biscuits and Confectionery,
and International Soup and Sauces.
Over the past two years, the company has focused its efforts on revitalizing
the U.S. soup business, strengthening the company’s broader portfolio, building
new growth avenues, driving quality and productivity and building organizational
excellence. The initiatives included, among other things:
quality upgrades to condensed soup varieties using the company’s proprietary
cold blend technology;
the introduction of a major U.S. convenience platform, including soup in microwavable
containers;
the introduction of multiple new product offerings in the North America Sauces
and Beverages and the Biscuits and Confectionery segments;
the introduction of easy-open lids on the company’s condensed soups;
the introduction in Canada and Australia of new lines of vegetable soup in
aseptic packaging;
the company’s initial rollout in the U.S. of “iQ Shelf Maximizer,” a gravity
fed shelving system to improve ease of shopping for soup;
increased spending on total marketing, capital improvements, systems infrastructure
and research and development over the levels in place for fiscal year 2001,
prior to adoption of these initiatives;
the implementation of productivity programs; and
programs to improve employee engagement across the company.
Based on the progress to date on these initiatives and on-going assessment
of the company’s capabilities, the company has broadened its strategic framework.
In this regard, the company’s primary focus will be all the North American thermally
processed businesses (including U.S. soup, beverages, sauces and simple meals).
Strengthening the broader portfolio for consistent sales and earnings growth
will continue to be an important commitment. The company intends to continue
to pursue both product and packaging quality improvements, and to broaden its
productivity program. Building organizational excellence and vitality will continue
to be an important initiative.
Ingredients
The ingredients required for the manufacture of the company’s food products
are purchased from various suppliers. While all such ingredients are available
from numerous independent suppliers, raw materials are subject to fluctuations
in price attributable to a number of factors, including changes in crop size,
cattle cycles, government-sponsored agricultural programs, import and export
requirements and weather conditions during the growing and harvesting seasons.
Ingredient inventories are at a peak during the late fall and decline during
the winter and spring. Since many ingredients of suitable quality are available
in sufficient quantities only at certain seasons, the company makes commitments
for the purchase of such ingredients during their respective seasons. In spite
of the foregoing, the company does not anticipate any material restrictions
on availability or shortages of ingredients that would have a significant impact
on the company’s businesses.
Customers
In the United States, Canada, Europe and the Asia/Pacific region, sales solicitation
activities are conducted by the company’s own sales force and through broker
and distributor arrangements. In the United States and Canada, the company’s
products are generally resold to consumers in retail food chains, mass discounters,
club stores and other retail establishments. In Europe, the company’s products
are generally resold to consumers in retail food chains, mass discounters and
other retail establishments. In the Asia/Pacific region, the company’s products
are generally resold to consumers through retail food chains, convenience stores,
vending machines and other retail establishments. In all cases, the company
makes shipments promptly after receipt and acceptance of orders.
The company’s largest customer, Wal-Mart Stores, Inc. and its affiliates.
Competition
The company experiences worldwide competition in all of its principal products.
This competition arises from numerous competitors of varying sizes, including
producers of generic and private label products, as well as from manufacturers
of other food products, which compete for trade merchandising support and consumer
dollars. As such, the number of competitors cannot be reliably estimated. The
principal areas of competition are brand recognition, quality, price, advertising,
promotion and service.
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