Atlanta, GA and Camden, NJ, June 7, 2007 - Campbell Soup Company, Coca-Cola North America and Coca-Cola Enterprises Inc. today announced that the companies have entered into an agreement for distribution of Campbell's single-serve beverage portfolio.
Under the terms of the agreement, CCNA will have the master distribution rights for Campbell's single-serve refrigerated immediate consumption beverages (24-ounce or less PET plastic), including "V8" 100-percent vegetable juices, "V8 V-Fusion" juices, "V8 Splash" juice drinks and "Campbell's" tomato juice in the U.S. and a similar variety of products in Canada. The agreement is effective immediately, and CCE and potentially other Coca-Cola bottlers will begin distributing the beverages in September 2007. Financial terms were not disclosed.
Campbell's beverage portfolio, which represents approximately 10 percent of Campbell's North American sales, is well known for its nutrition profile. The portfolio includes the leading vegetable juice in the U.S. "V8" vegetable juice, as well as "V8 Splash" juice drinks and the innovative "V8 V-Fusion" beverage. Introduced in the second quarter of fiscal 2006, "V8 V-Fusion" is a 100-percent juice beverage that combines a full serving of vegetables and a full serving of fruit in each 8-ounce serving with no added sugar. "Campbell products are a terrific addition to our portfolio," said Sandy Douglas, President, Coca-Cola North America. "This distribution agreement gives the Coca-Cola system some powerful brands that perfectly complement our own portfolio of fruit juices and juice drinks. This arrangement expands the Coca-Cola North America and CCE relationship with Campbell that began with the launch of Godiva Belgian Blends last year."
Denise Morrison, President, Campbell USA, said, "This is an ideal partnership for Campbell. The agreement supports two of our key business strategies: expanding our icon brands such as 'V8' and making our products more broadly available in new and existing markets. Campbell is well-positioned to deliver innovative products that meet consumers' wellness needs. Through this agreement, consumers will have greater access to the healthful Campbell beverages they are increasingly demanding through the many retail outlets served by Coca-Cola's leading beverage distribution system. We believe this agreement represents a significant growth opportunity for our single-serve refrigerated immediate consumption beverages, which currently comprise approximately 15 percent of our total beverage sales."
"This agreement demonstrates that, in partnership with Coca-Cola North America, we have significantly strengthened our product portfolio to offer customers and consumers more options in the growing immediate consumption still beverage category," said Terry Marks, President, North American Business Unit, Coca-Cola Enterprises. "By combining the power of our world-class sales and distribution system with these respected Campbell's brands, we can provide our customers with even more juice and juice drink options."
In 2006, Campbell reduced the sodium content in its "V8" 100-percent vegetable juice line, with each 8-ounce serving containing 480 mg of sodium. One 8-ounce serving of "V8" provides two full servings of vegetables, a good source of potassium, two grams of fiber, and antioxidants such as lycopene and vitamins A and C. In Canada, "V8" vegetable cocktail carries the Health Check symbol from the Heart and Stroke Foundation, which identifies the beverage as a healthy food choice, based on nutrition criteria in line with Canada's Food Guide to Healthy Eating.
Campbell's U.S. beverage business, which includes the single-serve refrigerated immediate consumption beverages that CCE and potentially other Coca-Cola bottlers will distribute, has been the company's best-performing business in fiscal year 2007, building on very strong results in fiscal 2006. In the third quarter of fiscal 2007, sales of Campbell's beverage portfolio increased significantly, primarily driven by increased consumer demand for healthy beverages and higher levels of more effective advertising.
Ongoing consumer demand for healthy beverages and the debut of the "Bop" advertising campaign, an update on the classic "I Could've Had a V8" campaign, have helped drive strong sales of the "V8" portfolio in fiscal 2007.