In a move to enhance corporate social responsibilities (CSR) and
minimize operating costs,
Campbell Soup Company
) has completed work on a 9.8-megawatt solar power system at its
Napoleon, Ohio manufacturing facility.
The successful completion of the project was achieved due to the
combined effort of Campbell, BNB Renewable Energy Holdings,
Enfinity America Corporation, FirstEnergy Solutions and
To develop the project, Campbell entered into a power purchase
agreement (PPA) with BNB in 2009, under which the former will buy
100% of the power generated in the facility. Later, FirstEnergy
entered into a deal with BNB to purchase all the energy credits and
environmental benefits generated from the project. Enfinity
arranged funds (term financing) for the project from
Wells Fargo & Company
Further, BNB contracted with SunPower to engineer, procure and
construct the project. The Sun Power Oasis system, which is
designed and set up by SunPower, captures a total area of 60 acres.
SunPower uses To Tracker technology, which has the capacity to
generate highest energy per acre while minimizing power cost over
the next 20 years or more. The Tracker technology captures 25% more
sunlight than conventional fixed-tilt systems as it follows the
sun's movement throughout the day.
Currently, the new solar power system is capable of fulfilling
15% of the facility's power requirement. By 2020, the company aims
to source 40% of energy requirements from renewable or alternative
sources while reducing energy consumption by 35% per ton of product
produced. Since its commencement, the project has generated almost
We believe the world's largest soup maker company will be able
to make a positive impression in the markets, where it operates
through its corporate social responsibility program.
Prior to this, Campbell acquired a four acre property in the
City of Camden from Camden Gateway Properties, I, LLC. The move was
a step toward the company's commitment to the State of New Jersey
and the County and City of Camden to redevelop a Gateway Office
Park in the city. We believe the acquisition will drive future
development while creating new job opportunities within the
Campbell Soup is one of the world's leading manufacturers of
convenience food products. Furthermore, a strong portfolio of
well-established brands, including Campbell's, Erasco, Liebig,
Pepperidge Farm, V8, Pace, Prego, Swanson, and Arnott's offer a
competitive edge to the company and strengths its well-established
position in the market.
Moreover, we believe that Campbell's prudent investment and
strategic initiatives toward product innovation and brand building
will lead to an increase in its customer base and profitability.
Moreover, the company's continuous focus on research and
development to further differentiate its higher-margin sauce brands
will strengthen its position in international markets.
However, rising commodity costs, intense competition from other
established players and exposure to unfavorable foreign currency
fluctuations may undermine the company's growth prospects.
Campbell, which currently competes with
General Mills Inc.
H.J. Heinz Company
), has a Zacks #3 Rank, implying a short-term Hold rating on the
stock. Moreover, we have a long-term Neutral recommendation on the
CAMPBELL SOUP (CPB): Free Stock Analysis Report
GENL MILLS (GIS): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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