Terry Bivens
Terry Bivens
ability campbell concern condensed food grow problem shown
The problem with Campbell is they have not shown the ability to grow their condensed food line. The concern is that over time, you're going to have to do a makeover on the whole line.
cash drives growth rightly viewed
What they need to do is deploy the cash in a way that drives some growth. Sara Lee, rightly or wrongly, is not viewed as a growth company.
company condensed convenient heart high product seen soul soup time trouble
They had trouble because condensed soup is increasingly seen as not convenient enough. There hasn't been enough product innovation. Consumption has been in a downturn for some time now, and soup has been the heart and soul of this company with high margins.
close table
I think $70 will probably get them to the table and $72-to-$75 will close the deal.
board difficult figure impatient left
Campbell's board is getting real impatient with these restructurings. Really, to me, it's getting increasingly difficult to figure out what's left to cut.
bag candy company depend food hershey hidden increases less mix move pointed power price putting rare reasons top volume
The company is one of those rare food firms that doesn't really depend on price increases to move the top line. That's one of the reasons we like them. However, it should be pointed out that Hershey also has the power to take, kind of, hidden price increases, if you will, by putting less volume of candy into the bag line. So that's kind of a hidden way in which the company can move the price mix equation.