:. Food Industry News


Heinz CEO Says Campbell Would Be 'Nice Fit'

Source: Reuters
14/08/2008

Chicago, Aug 13 - H.J. Heinz Co's chief executive said on Wednesday that Campbell Soup Co would make a "nice fit" with the ketchup maker, although a Heinz spokesman declined to say whether such a combination had been seriously considered.

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"Campbell is a great company," Heinz Chief Executive William Johnson said when asked by a shareholder at the Heinz annual meeting about making an offer for the world's largest soup maker. "Campbell would represent a nice fit with the company. We are always looking for opportunities to expand and grow."

Heinz spokesman Michael Mullen declined to say whether Heinz has considered making an offer for Campbell.

A Campbell spokesman also declined specific comment.

"As a practice, we don't comment on statements made by other companies and we're not going to comment on any statement made by Heinz at its annual meeting today," said Anthony Sanzio, a spokesman for Campbell.

Also on Wednesday, Heinz stood by its earnings and other financial targets for this fiscal year and the next, with emerging markets seen as its biggest growth opportunity.

Heinz, which also makes Ore-Ida frozen potatoes, Plasmon baby food and a variety of other packaged foods, expects emerging markets to account for 15 percent of sales by the end of fiscal year 2010 and as much as 20 percent in 2013, Johnson said on Wednesday in remarks prepared for the annual meeting.

Heinz, whose fiscal year ends April 30, repeated its annual growth targets of 8 percent to 11 percent for earnings and 6 percent for sales.

The company also forecast operating free cash flow of around $850 million per year.

Heinz shares were up 44 cents at $51.75 in midday New York Stock Exchange trade. Campbell shares were down 12 cents at $37.69.



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