Campbell Soup eyes Godiva options

Food maker wants to refocus on core soup and baked snacks businesses, says it's exploring strategic alternatives for chocolatier.

August 9 2007: 11:49 AM EDT

NEW YORK (Reuters) -- Campbell Soup Co. said Thursday that it is exploring strategic alternatives for Godiva Chocolatier, including a possible sale of the luxury chocolate business.

The decision to explore strategic alternatives for the business came as part of the largest U.S. soup maker's reviewed its portfolio, which also includes Pepperidge Farms cookies and crackers and V8 vegetable juice.

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"The premium chocolate business does not fit with Campbell's strategic focus on simple meals - including soup - baked snacks and vegetable-based beverages," Douglas Conant, Campbell's president and chief executive, said in a news release.

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The higher-end chocolate business has become more competitive in recent years, with companies such as Hershey Co (Charts, Fortune 500). selling more premium products at grocery stores and convenience shops. At the same time, Godiva's chocolate shops face growing competition from shops like Mars Inc.'s Ethel's chocolate lounge.

Godiva has annual sales of about $500 million out of Campbell's total of more than $7.3 billion.

Campbell (Charts, Fortune 500), which competes with HJ Heinz (Charts, Fortune 500) and Kraft Foods Inc (Charts)., said it has retained Centerview Partners LLC as its financial adviser.

Campbell shares closed at $36.95 on Wednesday on the New York Stock Exchange. The stock is down 5 percent this year, compared with a 3.8 percent increase for the Standard & Poor's packaged foods index. Top of page

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