Campbell’s extends ladle to China, Russia
MOUNT LAUREL, N.J. – China and Russia eat a combined 350 billion servings of soup a year, a massive market that Campbell Soup Co., the world’s largest soup maker, hopes to capture at least part of this October with its first major foray into either country.
The strategy for the Camden-based company: Start with broth.
In China, the company plans to sell two types of broth under its Swanson brand-name, which has been selling in Hong Kong since the 1980s. Campbell said Swire Beverages, a Coca Cola bottler, will distribute the products.
Campbell plans to begin by distributing 10 million samples and recipe booklets. The company wants to launch sales in five cities in Guandong Province.
In Russia, the company plans to start selling three varieties of Campbell’s Domashnaya Klassika – or Home Classics – broth in the Moscow area.
Neither market will see the iconic soup cans that inspired Andy Warhol. The Russian products will come in pouches and the Chinese in boxes.
Shares of Campbell’s stock rose 12 cents to $38.17 Monday afternoon.
•Limited Brands Inc., repositioning itself as a lingerie and beauty products retailer, stepped away from the apparel business Monday by giving up majority ownership of its former flagship clothing store.
The operator of Victoria’s Secret and Bath & Body Works said it had agreed to transfer 75 percent ownership of its Limited Stores chain to buyout firm Sun Capital Partners Inc.
Company founder Les Wexner had used Limited Stores as the starting point for the specialty retailer when he opened his first store in 1963, but the chain had been underperforming for years, pushing Limited Brands to focus on its more profitable beauty products and underwear.
Limited Brands will not receive any money for the transfer of its stake in Limited Stores to Sun Capital and expects to record an after-tax loss of $42 million on the deal.
The chain has 251 stores and sales of $493 million in 2006.
•Google Inc. is buying e-mail security specialist Postini Inc. for $625 million, fortifying the Internet search leader’s effort to sell online software services to corporate customers seeking alternatives to Microsoft Corp.’s long-dominant products.
The all-cash deal announced Monday is aimed at reassuring large businesses that have had qualms about entrusting Google to oversee their e-mail systems and other vital applications because of security concerns.