Filed under: Deals, Consumer experience, Competitive strategy, Campbell Soup (CPB), Hershey Co (HSY)
According to a report from Bloomberg this morning, Campbell Soup Co. (NYSE: CPB) is looking to rake in somewhere between $1 billion to $1.5 billion when it sells off its boutique chocolate brand Godiva Chocolatier. News of the company’s interest in selling off the brand came early last month, at which time analysts had predicted the sale would bring in between $750 million and $1 billion.
The company first got involved with Godiva back in 1966 when it purchased one-third of the company, and following that took over ownership. Godiva represents around 7% of Campbell’s total revenues, but the company has been careful to keep the brand separate from the core Campbell’s name brand.
It makes sense that Campbell’s would try to unload Godiva as it is trying to focus on “centering on convenience, wellness and quality,” and are looking to expand its soups business more in China and Russia, two countries that have faster growing economies and larger soup consumption than America.
Some potential buyers for Godiva could be Hershey Co. (NYSE: HSY), Mars Inc. and Cadbury Schweppes Plc (NYSE: CSG), according to Credit Suisse. Another company that has publicly stated interest is Swiss chocolate maker Lindt & Spruengli, which has announced yesterday that it will be raising its product prices from between 6 and ten percent, depending on the country, and will be looking into the possibility of picking up Godiva.
[Thanks to Jaye_Elle for the photo]
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor’s Observer
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