Campbell 1Q Net Down 8.2%; Soup Competition To Hit 2Q |
| Wall Street Journal - Nov 23, 2010 |
Campbell Soup Co. (CPB) expects hot competition and discounts in the soup aisle to continue to pressure profits during the peak soup-selling season.
Campbell, after reporting an 8.2% decline in fiscal first-quarter earnings on weak soup sales, expects second-quarter earnings to once again feel pressure from what it sees as an unsustainably high level of discounts.
Campbell will maintain a "strong promotional position" for the upcoming quarter to keep pace with rivals such as General Mills Inc.'s (GIS) Progresso soups, which have maintained aggressive discounts to woo shoppers, Chief Executive Douglas Conant said Tuesday during a conference earnings call.
But with higher commodity costs looming, Campbell will move away from aggressive discounts, which have failed to stoke sales gains. Instead, Campbell will step up advertising and other "brand building" marketing that aims to sell more soup without relying as much on lowering prices.
Read Full Article from Wall Street Journal
- Posted: 2010-11-23 10:16:41
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