Business Case Studies,Corporate Governance & Business Ethics Case Study, Campbell Soup, the American Soup Maker: Will the Restructuring Pay-off?

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Campbell Soup, the American Soup Maker: Will the Restructuring Pay-off?



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Code : COS0108

Year :
2010 - 2013

Industry : Processed Food

Region : United States

Teaching Note: Available

Structured Assignment : Not Available

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Introduction: Campbell Soup Company (Campbell), a global manufacturer and marketer of convenience food products, was established in 1869. As of 2011, Campbell operated in five main product segments – U.S. Simple Meals; U.S. Beverages; Global Baking and Snacking; International Simple Meals and Beverages; and North America Foodservice segments. Apart from the US, Campbell products were offered in more than 165 countries including Australia, Canada, France, Germany, and Belgium. Its product portfolio included soups, sauces, breads and cookies, puff pastry products, vegetable juices, beverages, biscuits and crackers, broth and stock, and chicken among a wide array of other products. At the end of fiscal 2012 (August 2011 to July 2012), the company possessed 4,200 trademarks in various product categories.

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Campbell had become the world’s largest producer of soup with a 60% market share in the $4 billion soup market by 2010. In the same year, it occupied tenth place in the Fortune 500 listing of global food processing companies. However, it suffered inconsistent growth during 2006-2010. It was faced with legal notices from health activists and found itself losing its identity among the younger generation. , Denise Morrison (Morrison), who took over as CEO in August 2011, undertook a nine-month review of the situation, and came up with some measures for the revitalization of the company to increase its share in the US and the global ready to eat food market. The restructuring initiatives were aimed at expanding into international markets and new food categories, while strengthening the company’s position in existing markets and its core offerings.

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