Chicago, July 15 - Campbell Soup Co plans to emphasize the health benefits of its Chunky brand and cut the sodium in its best-selling condensed tomato soup as it tries to lift U.S. sales in the coming fiscal year.
The world's largest soup company also stood by its earnings forecast for the fiscal year ending Aug. 2 during a meeting on Wednesday with analysts and investors.
Like most food companies, Campbell raised prices in the past year to combat then-soaring commodity costs. The price increases and the recession pressured some soup sales, especially microwaveable bowls and cups.
The company also faces competition from General Mills Inc's Progresso brand, which has also emphasized a health message, and lower-priced store brands.
Campbell plans to make 24 varieties of its Chunky brand with lean meat and 30 varieties with a full-serving of vegetables as it tries to sell the hunger-quenching brand to men who are concerned about their health and the wives and mothers who often shop for them.
The company also plans to cut the sodium in its condensed tomato soup by 32 percent to 480 milligrams per serving, making it marketable as a lower sodium food.
Campbell has had success selling soups with reduced sodium, using a proprietary lower-sodium sea salt in the recipe.
The analyst meeting was notable for the absence of CEO Douglas Conant, who remains in the hospital after being injured in a car accident on July 2.
Chief Financial Officer Craig Owens said Conant was in contact with executives via telephone and still was in change of the company.
Campbell also confirmed that fiscal 2009 earnings per share would be up slightly more than its 5 percent to 7 percent long-term growth target, excluding one-time items, from the $2.09 reported a year earlier. That is equal to slightly more than about $2.19 to $2.25 a share for the fiscal year ending Aug. 2.
The stronger dollar, which reduces the dollar value of sales outside the United States, is expected to cut about 5 percentage points from earnings and sales growth, the company said.
Analysts on average forecast $2.17 a share, according to Reuters Estimates.
The company said it expects an increase in fiscal 2009 sales within its long-term target range of 3 percent to 4 percent, excluding currency and the impact of an extra week during fiscal 2008.
Campbell shares rose 11 cents, or 0.4 percent, at $29.50 on the New York Stock Exchange.