A WEE DRAM
CHRIS GILMOUR: Campbell’s soup cans may be iconic, but to deliver it must execute fresher strategy
Campbell’s shares may have an attraction for the long-term investor, if management’s strategy and execution succeed
With the liberalisation of foreign-exchange allowances that permit South Africans to invest offshore, many local fund managers have advised clients to stock up on well-known and trusted brands such as IT titans Apple, Microsoft and Google, big pharma stocks like Johnson & Johnson, and consumer goods giants such as Unilever. Until recently, iconic American food company Campbell Soup Company would have fallen into that category, but the company has not adapted quickly enough to demographic changes and its share is priced for growth while not delivering on this. Campbell’s has been around for almost 150 years and the bedrock of its business is canned condensed soup, as immortalised by the 1960s artworks of Andy Warhol. These high-margin, fast-moving commodity soups have been gradually losing their allure as consumers demand fresher products. They now only appeal to an older demographic that grew up on cheap and cheerful icons of everything that used to be great about the US. Retailing ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.