The Campbell Soup Co., seeking to revive growth after lowering its earnings forecast, is reshuffling management and assigning executives to product categories rather than geographic areas.
Three new business divisions will be created as part of the reorganisation, the company said in a statement. There will be an Americas simple meals and beverages group that includes the US retail and foodservice business, a global biscuits and snacks division, and a packaged fresh unit focused on things like carrots and salad dressings.
Campbell, which sells Pepperidge Farm cookies and Goldfish crackers in addition to its hallmark soup, aims to reinvigorate growth in an industry struggling with slow sales and currency headwinds. The Camden, New Jersey-based company reduced the low end of its annual earnings forecast in November. Sales are projected to drop about 1 per cent in the coming year, according to analysts’ estimates compiled by Bloomberg.
Even as it tries to pull out of a slump, Campbell has been the subject of takeover speculation in recent months. The stock surged earlier this month after a report that 3G Capital Partners, the Brazilian buyout firm that previously acquired Heinz, might be interested in Campbell.
In this recent shake-up, Mark Alexander, 50, will take over the Americas simple meals business, which generates about $4.5 billion in annual sales. He is currently president of Campbell North America. Luca Mignini, the 52-year-old head of Campbell International, will run the $2.8-billion global biscuits and snacks unit. Jeffrey Dunn, 57, will manage the packaged fresh business. He was president of Bolthouse Farms.
As part of these recent changes, Irene Chang Britt, the president of Pepperidge Farm and senior vice-president of global baking and snacking, is leaving the company.“This reorganisation will help unlock the value of our brands and the growth potential of our business,” chief executive officer Denise Morrison said in the statement. “It will drive focused investment on our largest growth opportunities.”
Bloomberg News, edited by ESM
