Campbell Soup is an iconic leading brand that will not disappear over-night. They control 60% of the wet soup market. That is a dominant
leadership dictatorial position. Despite some self-inflicted gun-shot wounds they still control American Soup.
Margins are still fantastic which bodes well for dividend increases over time.
Campbell Soup is improving their cost structure with clear bottom line improvements. There are eleven (11) product groups with sales in excess of $100 million. The leverage will be tremendous.
Two plants are closing. 700 jobs are eliminated. This is 4% of the workforce. The big machete is swinging and cutting deep.
Campbell recognizes the need to use local partners as local tastes are different end evolving.
George Gutowski writes from a caveat emptor perspective.