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Soupman Inc. Bids for a Fair Share of the Nationwide Soup Market Overview
At the end of Fiscal 2013 (July), Campbell’s (NYSE:CPB) reported gross revenues of $8.1 billion, up nicely from $7.2 billion in 2012. However, earnings-per-share ($2.13) remained lower than at any time in the previous three years. The soup product line – counting Chunky, Select,Classicand condensed – brought in one-fourth the company total, around $2.2 billion in grocery sales nationwide, excluding the Wal-Mart chain.
In short, non-soup lines vegetable juice (V-8), energy drinks, snack foods (Tim Tam confectionery, Kjeldsen’s cookies), pasta and sauces (Prego), organic baby food and children’s snacks (Plum, Super Puffs, and Mighty 4), bread, cookies and crackers (Pepperidge Farms) already account for three-fourths of Campbell’s turnover.
Progresso (owned by General Mills, NYSE:GIS) is based in Vineland, South Jersey, centrally located for its sources of vegetables, just like Campbell’s. The former estimates it now accounts for 40% of the total soup business. This would mean around $1.5 billion, largely credited to intense product R & D, comparative advertising versus Campbell’s and aggressive launches behind its 40 varieties of “light” (less than 100 calories per serving) soup flavors.
The duopoly by Campbell’s and Progresso notwithstanding, competition looks to become more intense. Present rivals in prepared foods and packaged soup comprise Soupman Inc. (http://originalsoupman.com/soup-shop/dining-near-you) (OTCMKTS:SOUP - http://finance.yahoo.com/q?s=SOUP, $2.38 million last year), Centennial Specialty Foods Corporation (OTCMKTS:CHLE, $4.42 million as of 2004, the last report filed), The Hain Celestial Group, Inc. (NASDAQ:HAIN, posting $1.73 billion in fiscal 2013 ), Ralcorp Holdings, Inc. (NYSE:RAH, $4.32 billion in fiscal 2012), TreeHouse Foods Inc.(NYSE: THS., $2.29 billion gross revenue in 203), Mondelez International Inc. (NASDAQ: MDLZ, the former Kraft Foods Group, taking in $35.3 billion gross revenue in 2013), Tyson Foods, Inc.(NYSE:TSN, $34.37 billion in 2013 gross revenue), Unilever N.V. (ADR) (NYSE:UN, €49.8 billion for all lines, including toiletries), for its Knorr instant soup line, Flowers Foods, Inc. (NYSE:FLO, $3.75 billion in 2013 gross revenue), ConAgra Foods Inc (NYSE:CAG, $4.4 billion revenue), AnniesInc(NYSE:BNNY, $170 million in 2013), Armanino Foods Of Distinction Inc.(OTCMKTS:AMNF, $28 million revenue in 2013), Dinewise Inc (NDA) (OTCMKTS:DWIS, $6.72 million in reported gross revenue), MedifastInc (NYSE:MED, chiefly weight and disease management food products, $356 million in reported revenue), Greencore Group PLC (ADR) (OTCMKTS:GNCGY, $1.76 billion market capitalization), BEAUMONT SELECT CL A (OTCMKTS:BMNTF, $19.61 million market cap), Orkla ASA (ADR) (OTCMKTS:ORKLY, $8.31 billion market cap), Cuisine Solutions, Inc. (OTCMKTS:CUSI, $21.59 million market cap before the Easter break ), and H.J. Heinz Company (NYSE:HNZ, $11.6 billion gross revenue).
The Soupman Product Range
For all his exposure to Middle East and European cuisine, Iranian Al Yeganeh has not yet explored the full range of Oriental soups, broths, consommés, chunky borscht and goulash, potage and bisques available abroad.
The Pittsburgh franchise, launched in 2008 and due to be followed by a wave of franchise permits filed with each state, currently has eight soups in the rotation on any given day and 50 in total. These include the ever-popular lobster bisque, chicken vegetable soup with parsnips, Brussels sprouts and asparagus added, beef goulash, chowder, lentil and tomato bisque.