Changes at Campbell

by Eric Schroeder
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Denise Morrison, president and chief executive officer of Campbell Soup Co.

CAMDEN, N.J. — In a move designed to “unlock the value” of its brands, Campbell Soup Co. plans to implement a new enterprise structure that will align the organization of the company’s business operations with its core growth strategies. Under the new design, the Camden-based company’s businesses will be organized and managed in three divisions structured principally by product categories rather than by geographies or brand groups.

The three divisions are Americas Simple Meals and Beverages, Global Biscuits and Snacks, and Packaged Fresh.

Campbell said each division will have “meaningful scale, a clearly defined portfolio role and targets for growth” that are tied to its role in the enterprise and the scope of its marketplace opportunities. The company’s management structure will be simplified and streamlined.

“The adoption of our new enterprise structure will be an important milestone for Campbell,” said Denise Morrison, president and chief executive officer. “This reorganization will help unlock the value of our brands and the growth potential of our business. It will drive focused investment on our largest growth opportunities. It is the logical next step in our ongoing effort to shift our company’s center of gravity, accelerate our growth trajectory and maximize value for our shareholders.”

As part of the reorganization, three executives have been named to lead the three new divisions. The appointments will take effect on Feb. 1, and each leader will report directly to Ms. Morrison.

Mark Alexander, currently president – Campbell North America, will become president – Americas Simple Meals and Beverages. The new division will include Campbell’s current U.S. Retail and food service businesses, Plum Organics, and the company’s simple meals and shelf-stable beverage businesses in Canada, Mexico and Latin America. Aggregate net sales of the business operations that will comprise Americas Simple Meals and Beverages were approximately $4.5 billion in fiscal 2014, the company said.

“Consistent with its role as a vital economic engine for the enterprise, this division will be expected to deliver moderate top-line growth and significant margin expansion, with focused investment in scale platforms for brand-building, innovation and expanded distribution,” Campbell said.

Luca Mignini, currently president – Campbell International, will assume the role of president – Global Biscuits and Snacks, a new division that will unify the company’s Pepperidge Farm, Arnott’s and Kelsen businesses into a fully integrated global biscuits, snacks and fresh baked foods portfolio. With approximately $2.8 billion in fiscal 2014 net sales, Campbell said the division “will focus on driving the company’s growth in biscuits and snacks in its current developed markets and expanding its presence in developing markets, leveraging the full range of Campbell’s assets and capabilities in these categories and spearheading the development of significant multinational brands.” The company’s simple meals and beverage businesses in Asia Pacific and Asia, including its soup and broth business in Hong Kong and China, as well as its Pepperidge Farm U.S. bakery business, also will be operated and managed within this division.

Jeffrey Dunn, currently president – Bolthouse Farms, will become president – Packaged Fresh, a new division that will focus on building the company’s scale and accelerating its growth in the rapidly expanding packaged fresh segments and categories across the retail perimeter. The Packaged Fresh division will include Bolthouse Farms’ portfolio of fresh carrots, super-premium beverages and salad dressings and Campbell’s retail refrigerated soup business, which collectively accounted for approximately $1 billion of net sales in fiscal 2014.

In the coming months, the three new leaders will work with Ms. Morrison and the members of the Campbell Leadership Team to develop specific plans for organizing the three new divisions and for appointments to key leadership roles. In coordination with this process, work also will proceed on a reorganization of Campbell’s corporate functions to deliver agile and effective support to the business divisions, and on a major project to re-examine and redesign the company’s cost structure.

In connection with the reorganization, Irene Chang Britt, president – Pepperidge Farm and senior vice-president – Global Baking and Snacking, has announced her decision to leave the company. Ms. Britt had been president of Pepperidge since the middle of 2012.

“I’ve had the privilege of working with Irene for more than a decade, first at Nabisco and then at Campbell,” Ms. Morrison said. “She has made many important contributions to our company. I thank her for her dedicated and dynamic leadership, and wish her the very best in the years ahead.”
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