Campbell Soup (NYSE:CPB) has a blind side which will create a Black Swan very soon. If you believe the “Trend is your Friend” stop for a moment and think about the “Diabetes Epidemic” that is sweeping North America. Throw in some heart disease and high blood pressure issues while we are at it.
Look at the labels on Campbell Soup products. They just back the salt trucks up and pour it on. For a single tin of soup you can see RDA Sodium ranges of 25 to 45%. No one is impressed with the sugar levels as well.
Healthcare issues and costs are not going away. This is like the smoking campaigns that Big Tobacco had to contend with. But were smoking is truly a choice. Eating is not a choice but a necessity.
Yet the salt and sugar still go in and in and in.
Here is the problem with the board. They are all over 50 and the average is well over 60 years of age. Surely by now their individual doctor’s must have counselled them on reducing sodium and salt explaining the basic issues. With this knowledge they have done nothing to curtail the salt and sugar additives to Campbell Soup products.
While ignorance is bliss the board is not ignorant. The board is culpable. Would Directors E&O insurance cover this?
Quick review of independent board members shows no health and nutrition expertise. I say again the guys running a food company have no health and nutrition experience.
A Barry Rand 67 currently CEO of AARP which is the American Association of Retired People. Members of the AARP are increasingly concerned about health issues and a bowl full of Salt infused Campbell Soup is not um um good. Come on Barry wake up a little.
Nick Shreiber 63 Tetrapak and McKinsey & Co background. no chance apparently.
Lawrence Karlson 69 Private Investor with no food industry experience.
Paul Charron 70 Senior Advisor Warburg Pincus, General Foods and Proctor & Gamble but not focused on salt and sugar.
Mary Alice D Malone 62 Horse Breeder. Surely she would have a good understanding of what it takes to be superior in a physical sense.
Tracey Travis 50 the youngster on the board started as an engineer for General Motors and then went through Pepsi, Estee Lauder and Ralph Lauren. Guess the doctors visits are not yet high stakes?
Charles Perrin 67 Warnaco, Avon, Duracell, Cheeseborough-Ponds and General Foods.
Bennett Dorrance 66 a Phoenix Arizona Developer. No comparable skills.
Sara Mathew 57 Currently Chair and CEO of Dun & Bradstreet with 18 years of Proctor & Gamble experience. The P&G expereince is not working for her.
Randall Larrimore 65 Olin Corp, Master Brands, Pepsi Italy, McKinsey as well as other places. Some food experience but may not get the sugar and salt problem.
Charlotte Weber 69 Live Oak Properties which is real estate but not food.
Les C Vinney 63 Formerly sat on board of directors for Fed Reserve in Cleveland and has some Exxon and Engelhard in resume. Not sure if Fed Reserve is working on the Salt and Sugar problem.
Edmund Carpenter 70 is a venture capitalist without any perspective on health issues.
Archbold D van Beuren 55 is a career Campbell Soup Employee. Not the go to guy for salt and sugar issues.