Legendary company Campbell Soup is going to sell three units and to reduce its expenses by $ 945 million by 2022, writes RBC.
In particular, the company is making plans to get rid of a number of international businesses and a segment of fresh products. After this message, the shares of the food manufacturer fell more than 4%.
This is the most difficult stage in the company’s nearly 150-year history. Its securities are rapidly becoming cheaper: for example, during the past year, they lost 20% of price. For Campbell, it is increasingly difficult to sell its main product, soups. Consumers need new products.
Today it is owned by the heirs of the Campbell Soup founder and the inventor of concentrated soups John Dorrance. They have a conflict with minority shareholders who believe that the main owners do not contribute to the growth of other shareholders’ wealth.
Today, Campbell Soup costs about $ 12 billion, and its debt reached $ 9.6 although a year ago it was $ 3.1 billion. Most analysts advise selling its shares. As a salvation, the management of the soup group offered to get rid of several businesses.
To pay off debts, Campbell can get rid of international brands Arnott’s and Kelsen, as well as of Bolthouse Farms.
We recall that the company Campbell Soup became a symbol of not only concentrated soups, but also of a modern art.
“Campbell’s Soup Cans” by Andy Warhol is one of the most recognizable paintings in the world. It was created in the pop art style in 1962 and consists of 32 half-meter paintings, each of which depicts a can of Campbell Soup. The artwork belongs to the collection of the Museum of Modern Art in New York.