* To sell new carrot-based V8 drink
* To launch V8 V-Fusion with green tea
* Shares down 0.9 percent
(Adds comments on pricing outlook, byline)
By Martinne Geller
CAMDEN, New Jersey, July 12 Campbell Soup Co
(CPB.N) is introducing new V8 juice drinks and other products
to boost sales in the United States.
Campbell next month plans to start selling a V8 V-Fusion
drink with green tea that it hopes people will drink during the
afternoon hours. People often drink regular V8 V-Fusion in the
The company is also launching a carrot-based V8 vegetable
drink to attract consumers who may not like tomato juice, which
is the foundation of V8.
Campbell, which makes Prego pasta sauces and Pepperidge
Farm baked goods in addition to its soups, expects revenue
growth in fiscal 2011 to be fueled by higher sales volume, said
Chief Financial Officer Craig Owens. It will be hard to raise
prices as people focus on value, Owens said.
The company is also stepping up investment in new products,
The world's largest soup maker made the comments during a
meeting with analysts and investors at its headquarters in
Camden, New Jersey on Monday.
Campbell said it plans to make products more broadly
available in new markets and explore partnerships or
acquisitions. It also plans to boost profit margins by raising
prices, even though that remains difficult in the near term.
In its U.S. soup segment, which has been hurt by
competition with other simple meal options, Campbell said it
would test new versions of its canned tomato soup, made with
yellow and orange tomatoes.
Even though costs for some raw materials are expected to
rise in the coming year, Campbell said it expects to offset
those increases by cutting costs, such as by simplifying the
way it makes soup.
In May, Campbell said it expected full-year sales to rise
2.5 to 3.5 percent, with adjusted earnings per share growth at
the high end of its 9 to 11 percent forecast. [ID:nN24150692]
Campbell said it would not update that forecast on Monday.
Last month, the company voluntarily recalled 35,000 cases
of its "SpaghettiOs" canned pasta, saying some of the products
might have been under-processed. [ID:nN17176660].
Campbell shares closed down 0.9 percent at $35.96 on the
New York Stock Exchange.
(Reporting by Martinne Geller. Editing by Robert MacMillan and