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Campbell Soup Prices Godiva At $1 Billion

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By AMBEREEN CHOUDHURY and JACQUELINE SIMMONS, Bloomberg News

Published: September 15, 2007

Campbell Soup, the world's largest soup maker, is seeking $1 billion to $1.5 billion for its Godiva chocolate division, two people with direct knowledge of the sale said.

Financial information about the unit will be sent to potential buyers this month, said the people, who declined to be identified before an agreement is reached.

Godiva, which generates 7 percent of Camden, N.J.-based Campbell's revenue, is for sale after 40 years as Chief Executive Officer Douglas Conant tries to sell more V8 juice and Swanson broth. Campbell may use the proceeds to reduce debt, A.G. Edwards analyst Christopher Growe wrote on Aug. 9, when Campbell announced it was studying options for Godiva.

Selling Godiva 'certainly makes sense,' said Alton Stump, an analyst at Longbow Research in Independence, Ohio. 'It's not a core asset.'

Lindt & Spruengli may be one of the bidders, the sources said. The Kilchberg, Switzerland-based chocolate maker said on Sept. 4 it was considering making an offer.

Campbell won't comment on bidders or the timing of its review of Godiva, spokesman Anthony Sanzio said.

Campbell is expanding into China and Russia, whose economies are growing faster and soup consumption is greater than in the United States.

Godiva competes with Vevey, Switzerland-based Nestle and Lindt & Spruengli, the maker of Ghirardelli chocolates.

Godiva accounted for 0.6 percent of the global chocolate confectionery market last year, ranking 17th behind Mars' top-selling m&m's candies and Snickers bars, according to Euromonitor International, a London-based market research company. Godiva was 11th in the United States, with 2 percent of the market, trailing Reese's, which is made by Hershey Co.

Nestle said Feb. 22 it didn't plan any acquisitions to expand its chocolate business.

Possible bidders include Hershey Co., closely held Mars of McLean, Va., and London-based Cadbury Schweppes, the world's biggest candy maker, according to a report last month from Credit Suisse Group analyst Rob Moskow.

Zurich-based Barry Callebaut, the world's biggest maker of bulk chocolate, ruled itself out of the bidding for Godiva yesterday.

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