| For Immediate Release | 13 January 2011 |
Swire Pacific Limited today announced that it has entered into an agreement to form a joint venture with Campbell Soup Company (NYSE: CPB) to develop the growing soup market in Mainland China. Called Campbell Swire, the new company will begin operations in early 2011. Swire Pacific will own 40% stake while Campbell will have a 60% ownership stake in the joint venture. Profit and losses will be shared in proportions consistent with each party's ownership.
Mainland China is now the world's second largest economy and has one of the highest rates of per capita soup consumption in the world. Approximately 355 billion servings of soup are consumed in Mainland China annually - nearly all of them homemade.
Swire Pacific Chairman Christopher Pratt said, "The consumption of soup is an integral part of Chinese dining culture and its commercialisation has exciting potential which we believe this new partnership can realise. Campbell as a global leader in the marketing and manufacturing of soup together with Swire Pacific's long experience of sales and distribution in Mainland China will bring the right attributes to develop this market opportunity."
Douglas R. Conant, Campbell's President and CEO, said, "We continue to believe that developing a commercial soup market in Mainland China represents a tremendous business opportunity for our company. Realising the benefit of such an opportunity requires a long-term commitment and the right strategic partner. Swire has been an effective distribution partner for Campbell since we launched our business in Mainland China in 2007, and we look forward to the next phase of our relationship together."
The joint venture will be based in Campbell's current offices in Shanghai and will be responsible for manufacturing, packaging, branding, marketing, selling and distributing soup, broth and stock products in Mainland China. Campbell will retain ownership of Campbell brands and recipes and license those to the joint venture.
Campbell Swire will be led by Peter Foyston, 47, who joined Campbell in 2009 and is currently General Manager Campbell Soup Greater China.
Mark Alexander, President - Campbell International, said, "We've made great strides in understanding the market and refining our products to appeal to Chinese consumers. This partnership will help unlock the potential of the commercial soup market in Mainland China by pairing Campbell's brands, recipes and consumer insights with Swire's sales force, logistics capabilities and overall market knowledge."
Campbell launched its business in Mainland China in October 2007 in Guangdong province and expanded to Shanghai in November 2008.
About Swire Pacific Limited
Swire Pacific Limited is one of Hong Kong's leading listed companies, with diversified interests in five operating divisions: Property, Aviation, Beverages, Marine Services and Trading & Industrial. The Company's operations are predominantly based in the Greater China region, where the name Swire has been established for over 140 years. Swire Pacific focuses on long-term sustainable growth underpinned by a strong financial base. Its attributable profit in 2009 was HK$19,917 million and employs over 75,000 staff worldwide. For more information, visit www.swirepacific.com.
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including "Campbell's," "Pepperidge Farm," "Arnott's" and "V8." Through its corporate social responsibility program, the company strives to make a positive impact in the workplace, in the marketplace and in the communities in which it operates. Campbell is a member of the Standard & Poor's 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoup.com.
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