According to latest publications, CEO of Campbell Soup Company (NYSE:CPB)revealed during the company’s investor event that the firm will pull out from the Grocery Manufacturer’s Association (GMA), a major food association, by the end of the calendar year.
CEO Denise Morrison said in a statement that the decision, is “not financial,” but rather “driven by purpose and principles.”
Her remarks focused on the Campbell Soup (NYSE:CPB)’s goal of being “the leading health and well-being food company,” which comprise an importance on precision as a means of building trust with consumers, particularly millennials.
In the meantime Grocery Manufacturer’s Association backed its own efforts at transparency in a separate statement.
“It was GMA’s leadership that helped achieve passage in 2016 of a national standard for GMO disclosure,” said Roger Lowe, executive vice president of strategic communications for the GMA.
“We supported an option that can provide consumers more information about GMOs than could ever fit on a label.”
Furthermore Lowe revealed that the group’s transparency tool SmartLabel is likely to be used by 30,000 products by the end of the year, and it’s combining with the Food Marketing Institute on “common wording” for product dating aimed to reduce consumer confusion and waste.
Following the announcement, Campbell stock surged 3.1% on Wednesday close, but shares are down 13.1% for the year to date.
Moreover Campbell Soup (CPB) predicts adjusted earnings per share to go up 3% to 5%, or $3.04 to $3.09, for Full Year 2017, which is more than $3.05 per share average analysts outlook. The company also predicts Full Year 2017 sales to either drop 1% or remain flat.