Campbell CEO Morrison retires, kicking off a strategic business review
What we are seeing in the Campbell’s earnings report and decision to undertake a strategic review is yet another company that is grappling with the changes to their business model as consumer preference shifts toward healthier eating and snacking.
Some businesses are able to use acquisitions to pivot their businesses more quickly and respond to changing thematic tailwinds. Others, like we are seeing with Campbell Soup, are not.
Denise Morrison, CEO and president of Campbell Soup Co., announced she is retiring effective immediately, the company announced Friday morning.
“I am proud of Campbell’s accomplishments and how we have transformed our portfolio amid changing consumer tastes for food and health and well-being,” Campbell said in a statement. “It has been an honor to lead this iconic company and exceptional team, and I am confident that Campbell will enjoy continued success for many years to come.”
Les C. Vinney, chairman of the board, thanked Morrison for her service to the company.“Denise has been a passionate advocate and leader over her 15 years with the company,” he said in a statement. “She has made many important contributions over the past seven years as chief executive officer to reposition Campbell in the rapidly changing food industry.“
Campbell also announced its quarterly results Friday. Sales did increase 15 percent for the quarter, to $2.125 billion, but were driven by the acquisitions rather than organic sales. Gross margin was down.
“While our organic sales in the quarter were stable in this difficult environment, our gross margin performance was below our expectations,” Chief Financial Officer Anthony DiSilvestro said in a statement. “Based on our third-quarter results and outlook for the balance of the year, we are lowering our fiscal 2018 earnings guidance.
“Looking ahead, we will be reviewing all aspects of our strategic plans and portfolio composition. We anticipate that our review, which will take several months to complete, will lead to changes designed to improve our operating performance and create long-term shareholder value.”
Source: Campbell CEO Morrison retires, effective immediately – ROI-NJ
