Campbell Goes Even Healthier - Analyst Blog

Campbell Soup Company's (CPB) Pepperidge Farm division is said to be further reducing sodium across its portfolio of 84 breads, rolls and bagels. The company states that by February 2011, 80% of the Pepperidge Farm products will have at least 25% lower sodium than regular breads, rolls and bagels.

Pepperidge Farm is one of the leading sellers in the premium bakery category, providing a variety of nutritional benefits and outstanding quality of breads. Management states that more than half of the Pepperidge Farm sliced breads already have 25% lower sodium than regular sliced breads. The company states that approximately 40 Pepperidge Farm breads meet Food & Drug Administration (FDA) standards of being good sources of fiber, providing roughly about half a daily serving of whole grains in one slice. Further, it states that nearly two dozen Pepperidge Farm breads are certified by the American Heart Association for meeting the important criteria to display the AHA heart-check mark on its packages.

Campbell is one of the leading companies in the food industry that aggressively reduces sodium across its portfolio of products. The company has cut sodium in more than 100 of its products including V8 juices, Prego sauces and in some of its soups by 25% to 50% over the past four years. Further, in December 2009, Campbell had announced that it would cut sodium in its SpaghettiOs canned pasta by up to 35%.

According to the Food and Drug Administration, people with high blood pressure and others should limit their daily salt intake to 1500 milligrams.

With these guidelines in mind, other major food companies have also been reducing sodium in their offerings. In March 2010, Kraft Foods Inc. (KFT) had announced plans to reduce sodium by an average of 10% across its products primarily in North America over the next two years. To date, the company has already reduced sodium between 5% and 30% in many products, including Oscar Mayer Lower Sodium Bacon, Planters Lightly Salted Nuts and Hint of Salt crackers including Triscuit, Ritz, Wheat Thins and Premium.

Similarly, ConAgra Foods Inc. (CAG) in October 2009 announced its intention of cutting sodium by 20% over the next five years.

Given the growing awareness regarding sodium, together with the FDA guidelines, will continue to pressure food companies to find ways to reduce salt in their products.
 
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