Red alert: the soup's back on

Prepared Foods, Sept, 1997 by Steve Dwyer

What embodies Campbell's foodservice strengths is flexibility and diversity. "We need to generate awareness and captivate distributor salespeople about our branded and co-branded products," states Elmquist. "That starts by understanding distributors' strategies and goals, and becoming a part of the solution. We need to be creative and help them drive product through their system. They appreciate it more than us relying on direct operator pull-through."

Diversity is personified through foodservice's litany of crown jewel creations. These include frozen soups for Sysco, the largest U.S. foodservice distributor; chicken pot pies for KFC; soup for McDonald's; and Prego frozen entrees at club stores.

Campbell's Restaurant Soups, developed and marketed by foodservice and sold in 25% of the U.S., are available at retail and club stores.

Foodservices has built bridges to other Campbell divisions and companies. Pepperidge Farm, for instance, is equipped with its own foodservice team and is totally aligned with global foodservice. "Where we feel we have great upside opportunity with Pepperidge is the brandability of that name with finished products," says Elmquist.

With the KFC Chicken Pot Pie, Campbell foodservice created the filling and Pepperidge's foodservice the signature flaky crust. The product helped Campbell garner KFC's "Supplier of the Year" honor in '96.

The 'Sleeping Giant'

International growth is a key element of the strategic growth plan, but even Campbell officials will admit that several factors could temper the extent of expansion. The soup business, which is accruing market share in every one of Campbell's strategic countries with sales 40% ahead of last year, will - to no surprise-be the catalyst for growth.

Under the newly-announced international arrangement, Marty Thrasher will head the Europe/Canada business and will settle in Brussels. Andrew Hughson will direct the Asia/Pacific concern and operate out of Hong Kong.

The hugely-popular Godiva Chocolatier has a large base in Japan. Godiva's aggregate annual sales are up 11%, and 30% of that is from outside North America.

Soup volume grew 16% outside North America. Campbell's soup market share in Tokyo has more than doubled, while the company expects good results from soups that recently debuted in Hong Kong, Singapore, Taiwan and Malasia.

Thrasher, who will have responsibility for Campbell soup, sauce and biscuits, says Campbell has been "guilty of acting like canners. We need to open up the soup experience in a more holistic way to the local markets," asserts Thrasher.

As Campbell continues to drive top-line growth with soup business feeding the machine, Morrison tried to capture the essence of his company's core product. "Soup is all about quality, convenience and value. The way we see it, it is the perfect food."

RELATED ARTICLE: Hold the Pickles...Frozen Entrees and Chilled Foods?

Like many of its food company peers, Campbell Soup's strategic growth plan focuses on its core assets: Soups & sauces, foodservice, bakery & confectionery, and international.