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Campbell (CPB) Restructures Business, Forms Accelerator Unit
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Campbell Soup Company (CPB - Free Report) announced that it has restructured the company to resonate well with the fast changing food industry, apart from focusing more on its three growth strategies. Notably, the strategies are optimizing the value of its core units, including soup, simple meals, beverages and snacks portfolios; increasing health, food, beverages and snacks as well as pacing up distribution and latest business models.
The latest restructuring mainly focuses on organizing the company’s core business functions under the new chief operating officer, Luca Mignini, who currently controls its Global Biscuits and Snacks division. Mignini is likely to lead the core businesses and administer the integration of Pacific Foods and Snyder’s-Lance into the company’s business, thus boosting growth across the entire business portfolio.
Apart from directing the above operations, Mignini is expected to control the company’s meals and beverages portfolio, U.S. sales organization and the product development unit, within Research and Development worldwide.
This strategic reorganization also includes the creation of a new accelerator unit to boost long-term growth in its faster-growing businesses including Campbell Fresh. Furthermore, the accelerator unit is expected to encompass Campbell’s existing digital and e-commerce business, a host of cross-functional teams as well as key capabilities and functions revolving around strategy, long-term innovation, distribution models and boost consumer experience. This unit is likely to aid the company to redesign the future of food by keeping up pace with an agile and vibrant operating business model.
The unit is also expected to deeply analyze the consumer trends across its categories, marketing capabilities, consumers’ foresights, insights; build latest product platforms and models — including the company’s Science and Technology organization — and lead the creation and development of small brands and startups, besides identifying and capitalizing on external partnerships.
Spanning across Campbell’s digital and e-commerce operations, the accelerator unit’s team is expected to continue supervising the enterprise e-commerce strategy, and expand digital marketing initiatives and opportunities. Also, the team will focus on aiding a turnaround for the Campbell Fresh division, which remained soft in recent quarters. Last quarter, the segment also witnessed headwinds in the super premium juice category. Consequently, the company projected moderate decline in soup sales for the second half of fiscal 2018.
Moving ahead, the unit will also work on achieving improved growth rates for the packaged fresh category. Further, management remains on track to return the division’s CPG business to profitability by making innovations in the Bolthouse Farms refrigerated beverages. While Campbell looks for a new chief acceleration officer to direct the newly-created unit, Ana Dominguez, president of Campbell Fresh, will oversee its operations.
Meanwhile, management has made some leadership changes to promote the company’s entire strategy planning, development and measurement as well as accelerate growth of all its divisions.
We believe that the strategic reorganization should help the company grab opportunities better and optimize the utilization of resources to maximize profitability. These changes also make the company’s business model more unified and simpler, which are likely to boost growth across all its segments, snacks and U.S. soup portfolios, in particular.
Campbell closed trade at $43.48, reflecting a 0.6% upside yesterday. Also, this Zacks Rank #3 (Hold) stock has inched up 0.9% in a month against the industry’s decline of 4.8%.
Want Solid Picks in the Same Space, Check These
United Natural Foods, Inc. (UNFI - Free Report) , with a long-term earnings growth rate of 8.2%, has pulled off an average positive earnings surprise of 10.7% in the last four quarters. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods Holding Corp. (USFD - Free Report) , also a Zacks Rank #1 stock, has an impressive long-term earnings growth rate of 17%.
Medifast, Inc. (MED - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank of 1.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Campbell (CPB) Restructures Business, Forms Accelerator Unit
Campbell Soup Company (CPB - Free Report) announced that it has restructured the company to resonate well with the fast changing food industry, apart from focusing more on its three growth strategies. Notably, the strategies are optimizing the value of its core units, including soup, simple meals, beverages and snacks portfolios; increasing health, food, beverages and snacks as well as pacing up distribution and latest business models.
The latest restructuring mainly focuses on organizing the company’s core business functions under the new chief operating officer, Luca Mignini, who currently controls its Global Biscuits and Snacks division. Mignini is likely to lead the core businesses and administer the integration of Pacific Foods and Snyder’s-Lance into the company’s business, thus boosting growth across the entire business portfolio.
Apart from directing the above operations, Mignini is expected to control the company’s meals and beverages portfolio, U.S. sales organization and the product development unit, within Research and Development worldwide.
This strategic reorganization also includes the creation of a new accelerator unit to boost long-term growth in its faster-growing businesses including Campbell Fresh. Furthermore, the accelerator unit is expected to encompass Campbell’s existing digital and e-commerce business, a host of cross-functional teams as well as key capabilities and functions revolving around strategy, long-term innovation, distribution models and boost consumer experience. This unit is likely to aid the company to redesign the future of food by keeping up pace with an agile and vibrant operating business model.
The unit is also expected to deeply analyze the consumer trends across its categories, marketing capabilities, consumers’ foresights, insights; build latest product platforms and models — including the company’s Science and Technology organization — and lead the creation and development of small brands and startups, besides identifying and capitalizing on external partnerships.
Spanning across Campbell’s digital and e-commerce operations, the accelerator unit’s team is expected to continue supervising the enterprise e-commerce strategy, and expand digital marketing initiatives and opportunities. Also, the team will focus on aiding a turnaround for the Campbell Fresh division, which remained soft in recent quarters. Last quarter, the segment also witnessed headwinds in the super premium juice category. Consequently, the company projected moderate decline in soup sales for the second half of fiscal 2018.
Moving ahead, the unit will also work on achieving improved growth rates for the packaged fresh category. Further, management remains on track to return the division’s CPG business to profitability by making innovations in the Bolthouse Farms refrigerated beverages. While Campbell looks for a new chief acceleration officer to direct the newly-created unit, Ana Dominguez, president of Campbell Fresh, will oversee its operations.
Meanwhile, management has made some leadership changes to promote the company’s entire strategy planning, development and measurement as well as accelerate growth of all its divisions.
We believe that the strategic reorganization should help the company grab opportunities better and optimize the utilization of resources to maximize profitability. These changes also make the company’s business model more unified and simpler, which are likely to boost growth across all its segments, snacks and U.S. soup portfolios, in particular.
Campbell closed trade at $43.48, reflecting a 0.6% upside yesterday. Also, this Zacks Rank #3 (Hold) stock has inched up 0.9% in a month against the industry’s decline of 4.8%.
Want Solid Picks in the Same Space, Check These
United Natural Foods, Inc. (UNFI - Free Report) , with a long-term earnings growth rate of 8.2%, has pulled off an average positive earnings surprise of 10.7% in the last four quarters. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods Holding Corp. (USFD - Free Report) , also a Zacks Rank #1 stock, has an impressive long-term earnings growth rate of 17%.
Medifast, Inc. (MED - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank of 1.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>