Campbell Looks to Sell Godiva Chocolate Business
The decision came as part of the company’s review of its portfolio, which also includes Pepperidge Farms cookies and crackers and V8 vegetable juice. Godiva Chocolatier has annual sales of approximately $500 million.
10/08/07 Campbell Soup Company has said that it will explore strategic alternatives, including possible divestiture, for its Godiva Chocolatier business. The decision came as part of the company’s review of its portfolio, which also includes Pepperidge Farms cookies and crackers and V8 vegetable juice.
Godiva Chocolatier is one of the world's leading premium chocolate businesses and has annual sales of approximately $500 million. Campbell's sales total more than $7.3 billion. Godiva products are sold through company-owned and franchised retail stores, wholesale distribution points, including specialty retailers and finer department stores, and on the internet. Analysts believe that Godiva could attract a price of more than $1 billion (U.S.). The business could fit with several other companies, including Hershey Co., Cadbury Schweppes PLC., Mars Inc. and Wm. Wrigley Jr. Co.
Douglas R. Conant, Campbell's President and Chief Executive Officer, said, "Godiva is one of the world's most recognized luxury brands and the business has been a strong performer for Campbell. Although the premium chocolate category is experiencing strong growth and Godiva is well-positioned for the future, the premium chocolate business does not fit with Campbell's strategic focus on simple meals,--including soup--baked snacks, and vegetable-based beverages. It is the right time to explore strategic alternatives for Godiva as we continue to optimize Campbell's long-term growth potential by leveraging the competitive advantages of our simple meals, baked snacks, and vegetable-based beverages businesses."
Campbell has retained Centerview Partners LLC as its financial advisor in this matter.
