Campbell Acquires Wolfgang Puck Soup Business
Campbell Soup Company acquires the Wolfgang Puck soup business from Country Gourmet Foods. Separately, Campbell has entered into a master licensing agreement with Wolfgang Puck Worldwide Inc. for the use of the Wolfgang Puck brand on soup, stock and broth products in North American retail locations, with an option to extend the brand into other related categories and channels. Wolfgang Puck is known for its organic soup brands in the United States. Financial terms of the agreement were not disclosed, but Campbell anticipates that the acquisition will not have a material impact on its business results in fiscal 2009.
The acquisition of the Wolfgang Puck business and the trademark licensing agreement support Campbell's commitment to wellness and extend the company's offerings in the growing organic and natural segment of the market. According to industry estimates, full year 2007 sales for organic wet soup in the United States were $150 million, with a compound annual growth rate of 23 percent from 2003 to 2007. Campbell currently offers several organic products, including Campbell's tomato juice, V8 vegetable juice, Prego pasta sauce, Pace salsa, and varieties of Swanson broth.
Douglas R. Conant, Campbell's president and CEO, says, "We intend to strengthen and grow our business by pursuing strategic acquisitions and partnerships that complement our focus on our core categories of simple meals, baked snacks and healthy beverages. As the world's leading soup company, Campbell must expand its role in the organic segment of the market. Combining Wolfgang's brand and reputation with Campbell's distribution and marketing capabilities creates the opportunity for significant growth."
Introduced in 1997, Wolfgang Puck offers three main product lines -- its original "red label" ready-to-serve soups, organic and natural "green label" ready-to-serve soups, and natural and organic stocks and broths. The Wolfgang Puck portfolio of soup products has current net sales of approximately $22 million. The products are currently available in a number of retail locations across the United States.
The acquisition of the Wolfgang Puck business and the trademark licensing agreement support Campbell's commitment to wellness and extend the company's offerings in the growing organic and natural segment of the market. According to industry estimates, full year 2007 sales for organic wet soup in the United States were $150 million, with a compound annual growth rate of 23 percent from 2003 to 2007. Campbell currently offers several organic products, including Campbell's tomato juice, V8 vegetable juice, Prego pasta sauce, Pace salsa, and varieties of Swanson broth.
Douglas R. Conant, Campbell's president and CEO, says, "We intend to strengthen and grow our business by pursuing strategic acquisitions and partnerships that complement our focus on our core categories of simple meals, baked snacks and healthy beverages. As the world's leading soup company, Campbell must expand its role in the organic segment of the market. Combining Wolfgang's brand and reputation with Campbell's distribution and marketing capabilities creates the opportunity for significant growth."
Introduced in 1997, Wolfgang Puck offers three main product lines -- its original "red label" ready-to-serve soups, organic and natural "green label" ready-to-serve soups, and natural and organic stocks and broths. The Wolfgang Puck portfolio of soup products has current net sales of approximately $22 million. The products are currently available in a number of retail locations across the United States.