Campbell Soup, the 150-year company in refrigerated and fresh food is facing a severe crisis in its performance and leadership.
Its CEO, Denise Morrison, had been the chief motivator to bring the company into a great shape. She had been leading for the past 7 years. But with her sudden exit on Friday, Campbell shares were severely hit. The shares of Campbell dipped sharply by 12%, which is one of the worst one-day slumps over the past 19 years.
The profits from the company had been declining for the past 4 years, partly due to the increase in consumer’s preference to healthy and fresh food, over processed food. The soup business is under pressure, as health consciousness among consumers is bringing a new change in their eating habits, say sources.
Acquisition of Snyder-Lance, a snack making company is another reason that has contributed to the fall in the adjusted earnings per share.
For the quarterly results in April, the company showed a loss of $393 million. The slump in stock price is 30% in just one year.
New strategies under the leadership of Kevin McLoughlin, is to be released sometime in August.
It is expected that more decline in the company is yet to come. Inflation, infrastructure, import tariff, logistics cost, are some of the important reasons that are going to aggravate the situation for the company further. Tariffs on package food are on the increase, which affects the profits of the business says DiSilvesro, the Chief Financial Officer of the company.
Morrison had been with the company for more than 15 years and has been able to raise the company to tremendous growth. She has not given any reasons for her departure, though she is quitting immediately. However, Dominguez who was Campbell Canada president previously will be heading the Campbell Fresh business.
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