Posted on 08/09/2007 7:28:41 PM PDT by JACKRUSSELL
(MOUNT LAUREL, N.J.)--Campbell Soup Co. is putting Godiva up for sale, saying the decadent Belgium chocolate does not fit with the company's focus on healthy, down-home foods.
The Camden-based company announced Thursday that it has hired Centerview Partners LLC to advise it on what to do with Godiva Chocolatier, which the company has owned for more than 40 years, but says has never fit squarely into any of its main business units.
Analyst Mitch Pinheiro, who follows the company for Janney Montgomery Scott, said the company would need to get around $900 million for Godiva to avoid diluting earnings.
Pinheiro said Campbell has resisted selling Godiva in the past partly because there was no place to reinvest the money that would equal profits generated by the chocolate company.
He said that has changed. The company could put money toward its planned entry into the soup business in mainland China and Russia and into expanding manufacturing capacity for its increasingly popular V8 juices - and do it without taking on additional debt.
"I think the fact that the company's putting Godiva up for sale signals that Campbell Soup (nyse: CPB - news - people ) has strong growth opportunities in its core portfolio," Pinheiro said.
Godiva's annual sales have been around $500 million. In the fiscal quarter, that ended April 29, the company reported that the chocolate company's sales had big growth in Asia and smaller sales growth in North America.
Campbell has been trying to boost its image as a purveyor of healthy foods. The company has reduced the sodium in many of its soups and other products and has been ramping up marketing and distribution of its V8 vegetable juice.
The company has even rolled out a whole-grain versions of its Goldfish crackers.
Since when is sodium-drenched Campbell soup considered healthy or down-home?
Funny how in this day and age, about the only time I see the words decadent or sinful used is with respect to desserts and sweets.
It don’t fit with their focus on junk food! Geez!
Damnation, the opportunity of a lifetime, and I pissed it away at McDonald's!
Mmmmm, Godiva chocolates.
Now that’s what I call “mmm mmm good”. Sorry, Campbells.
History Godiva Chocolatier http://www.godivacareers.com/history.asp
That Godiva chocolate ice cream is to kill for... the white chocolate rasberry was the best...
Not only that, they are bragging up their V8 juices. You ever read the labels on those? Drink two and you got your sodium intake for a day and a half.
When I want something healthy, I boil my own veggies, and maybe drop in a ham hock. If I wanna splurge, I’ll use ground beef.
I’d be willing to bet that the ingredients they use for their juices come mostly from China.
That sounds much healthier than Belgium Chocolates </SARC>
Chocolate is more healthy than Campbell soups ... where’s the chicken????????
I can feel the calories forming a conga line and sliding down my backbone, just looking at that pic.
When I was a kid I drank Campbell’s soup, but now I wouldn’t touch it with a ten foot pole.
Godiva is a quality product.
*drool*
Godiva chocolates really aren’t that good. They’re mass-produced, like Hersheys. Find a local chocolatier that does small, handmade batches.
Healthy - like the Chicken Noodle soup with a week's worth of sodium/salt?
Monk,
Ya gotta knock it off! You’re driving the FReeper Ladies insane!
Yummmmmmm.
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