Campbell Soup Company and Coca-Cola Hellenic Bottling Company Enter Into a Distribution Partnership

Establishing a long-term distribution partnership with Coca-Cola Hellenic, the largest distributor in Russia, is an important step in unlocking the potential of the Russian soup market for Campbell.

27/05/09 Campbell Soup Company announced it has entered into a long-term agreement with Coca-Cola Hellenic Bottling Company S.A. for the distribution of “Campbell’s Domashnaya Klassika” (Campbell’s Home Classics) concentrated broth and other soup products in Russia.Douglas R. Conant, Campbell’s President and Chief Executive Officer, said, “Establishing a long-term distribution partnership with Coca-Cola Hellenic, the largest distributor in Russia, is an important step in unlocking the potential of the Russian soup market for Campbell. The emerging markets of Russia and China both represent a significant growth opportunity in the business that Campbell knows more fully than any other company in the world. These markets will play an increasingly important role in Campbell’s future as we gain momentum in our key areas of focus.”

Under the terms of the agreement, Campbell will be responsible for consumer and market research, brand management, marketing, product development and production. Coca-Cola Hellenic will be responsible for distribution, sales, in-store marketing and trade receivables.

Financial terms were not disclosed.

Coca-Cola Hellenic is currently distributing “Campbell’s Domashnaya Klassika” products in the Moscow region and in August 2009 plans to expand distribution to over 100 cities and 12 regions of Russia, with further nationwide distribution to follow.

Larry McWilliams, President, Campbell International, said, “Coca-Cola Hellenic has a world-class distribution network in Russia and its other markets, unmatched by any other distributor. Working with Coca-Cola Hellenic, we will be able to accelerate distribution throughout Russia, expanding more quickly into additional markets.”

Coca-Cola Hellenic is Russia’s largest distributor and seller of beverages and is responsible for managing the sales and distribution of an extensive range of brands of The Coca-Cola Company and other brands. The company operates 14 plants with distribution centers located across the country.

Chris Delaney, President of Campbell’s Emerging Markets, added, “Campbell and Coca-Cola Hellenic share a vision and belief in the opportunity to develop a large commercial soup business throughout Russia. We look forward to working together to build one of the world's great soup businesses in this market.”

Campbell entered the Russian market in 2007, launching in the Moscow region, which has a population of approximately 17 million. Along with its parallel launch in China, the Russian initiative is part of Campbell’s strategy to expand the availability of its products in new geographies.

Soup consumption in Russia is more than double that of the United States, where U.S. consumers eat approximately 14 billion soup servings per year. In Russia, nearly 32 billion servings are consumed each year, or approximately 230 servings per capita, which are still predominately homemade, making Russia the world’s second largest soup consuming market after China.

Campbell currently offers four varieties of its “Domashnaya Klassika” broth products: Chicken, beef, mushroom and beef & mushroom. Packaged in portable pouches bearing Campbell’s iconic red and white branding, these high-quality concentrated broths contain chunks of chicken, beef and mushroom, with vegetables. Campbell developed these broths to meet Russian consumers’ high standards, while dramatically reducing the time it takes to prepare soup from scratch.

Campbell has additional distribution agreements with The Coca-Cola Company and other bottlers of The Coca-Cola Company’s products, notably one supporting its single-serve refrigerated beverage business in North America and another with Swire Pacific for distribution of “Swanson” broth in China.