Dan Loeb video says Campbell Soup is ‘Mmm, mmm, bad’
By Carleton English and Josh Kosman October 18, 2018 | 1:37pm
See Video: Third Point Presents "Empty the Can"
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Forget your momma’s Campbell Soup.
Activist investor Dan Loeb released a four-minute video Thursday to entice mom-and-pop shareholders of Campbell Soup to overhaul its board and “refresh” the company.
The video opens with a housewife making dinner in a 1950s-era kitchen complete with pink appliances as Campbell’s familiar “Mmm, mmm, good” jingle plays in the background.
But the cozy image takes a dark turn after a voice-over declares that the Camden, NJ-based soupmaker’s treatment of shareholders is “Mmm, mmm, bad.”
“It’s time to empty the can, refresh the recipe and restore shareholder value,” Loeb’s Third Point said Thursday in a four-minute video.
Loeb’s plea comes after four descendants of John Dorrance — the inventor of condensed soup and early owner of Campbell — representing nearly 41 percent of shares said Wednesday that they plan to back the current board.
As such, Loeb’s new video looks like a pitch to Campbell’s remaining shareholders, 15 percent of which are thought to be mom-and-pop investors.
Campbell shares ticked up 2.1 percent, to $37.08, in midday trades Thursday.
The hedge fund also mailed out a packet of materials to investors earlier this month. According to one shareholder, the package weighed nearly 7 ounces and included a booklet and an 8-by-11-inch poster with an image of alphabet soup spelling out “Time to #refreshtherecipe.”
Campbell fired back against Third Point’s video Thursday.
“Third Point has failed to present any credible ideas for how it proposes creating value for shareholders. A video is not a plan,” the company said in a statement.
Third Point, which had earlier pushed for a sale of the company, has recently stressed that a turnaround is needed.
“Fixing Campbell is not a simple case of adding a little salt or trying some gluten free noodles. It’s far too late for that,” Third Point said, urging for a complete overhaul of Campbell’s 12-person board.
Third Point’s salt reference may have been a sly nod to fellow activist investor Jeff Smith of Starboard Value, who successfully pushed for change at Olive Garden-parent Darden Group after noting the restaurant chain didn’t salt its pasta water.
Campbell defended its strategy Thursday.
“We are focused on the core issues at hand – executing our plan, turning the business around and maximizing shareholder value,” it said.
FILED UNDER ACTIVIST INVESTORS , CAMPBELL SOUPS , DAN LOEB , SHAREHOLDERS |
