CAMDEN, N.J. (AP) -- Campbell Soup Co., the world's largest soup maker, said Wednesday it is teaming up with Swire Pacific Ltd. to develop the company's soups in China as it seeks to generate more revenue abroad.
According to Campbell Soup, China has one of the world's highest rates of soup consumption. About 355 billion servings of soup are consumed there annually, most homemade. Tapping into such a large market could help Campbell Soup offset declining sales in the U.S.
In November, Campbell Soup reported a drop in quarterly domestic soup sales as its promotions didn't lure shoppers to buy. U.S. shoppers did buy more of the company's condensed cooking soups in the fiscal first quarter, a sign that people wary about the economy are still eating in more. But sales of ready-to-serve and condensed eating soups declined. President and CEO Douglas Conant, who is stepping down from his posts in July, said at the time that Campbell lacked new products to help draw people to the category.
Campbell Soup will own a 60 percent stake in Campbell Swire, which will begin operating this year. Financial terms were not disclosed. The joint venture will be lead by Peter Foyston, 47, who joined Campbell in 2009 and is currently general manager of Campbell Soup Greater China.
Campbell launched its China business in 2007 in Guangdong province and expanded to Shanghai in 2008.
Campbell shares rose 44 cents to $34.99 during midday trading.
According to Campbell Soup, China has one of the world's highest rates of soup consumption. About 355 billion servings of soup are consumed there annually, most homemade. Tapping into such a large market could help Campbell Soup offset declining sales in the U.S.
In November, Campbell Soup reported a drop in quarterly domestic soup sales as its promotions didn't lure shoppers to buy. U.S. shoppers did buy more of the company's condensed cooking soups in the fiscal first quarter, a sign that people wary about the economy are still eating in more. But sales of ready-to-serve and condensed eating soups declined. President and CEO Douglas Conant, who is stepping down from his posts in July, said at the time that Campbell lacked new products to help draw people to the category.
Campbell Soup will own a 60 percent stake in Campbell Swire, which will begin operating this year. Financial terms were not disclosed. The joint venture will be lead by Peter Foyston, 47, who joined Campbell in 2009 and is currently general manager of Campbell Soup Greater China.
Campbell launched its China business in 2007 in Guangdong province and expanded to Shanghai in 2008.
Campbell shares rose 44 cents to $34.99 during midday trading.
