case 11 KICKSTARTER AND CROWDFUNDING" (On March 1, 2017, Kicstarte selested i ist anal bem efits sateen after rencorporating a5 a Public Benefit Corporation. By becoming 2 Publi Benet Corporation, Kikstarter enewed is image a a socially response cor ‘oration and announced that i would donate pereet of ‘he company’s annul aertax profit to promote the rts, ‘music, edoeaton and sytem equality. "As rest of advancemete in technology and world: side adoption of media palms. the concept of “cows funding” had become 2 noe. According to Wharton School researcher Ethan Moll, crowdfunding alloed “founders of forpreti, afte, and caltural ventures to fund their efor by drawing on relatively small contrib. tions fom arelaively large name finda sig the Interne without standard nunc Intermediaries” es onsdered a novel method fr Funding 4 varity of om Yeates” but Kas not without its problems Althoush Pilon of dots hed ben mised for projets ranging ‘om something a smal a an ast’ Yeo dar 1 lage endeavors suchas the development ofa new product or cessing eral an awaré-winnig fl documentary. ‘ery Ile wae known about the kind of mechani tht ‘nade funding efforts succes or whether “exsingprck ts imately deer tbe products they promise” ‘Ope example o ths “new phenomenon in entrepreneur Ship" was the story of Kicktarte. As of February 2017, condi wo ConsunerAuiscom, Kickster cased in Sra postion among the top 10 best rowan sts, with ‘rer 119.273 successfully funded pret. over 12 alon ‘ckrs, and over $2.86 blo in pledged dolar: 27 pre ts had ised over 81 milion ech. Kiksater aso had ‘hens te of neal 3 percen-meaning, However tht 6 percent of the te the backers got nothing in ceturn forthe donations= What mn thi cromnine hig all about and was Kiksatr tla boot for earepreneus ‘ea bust or acters? *Kickstarter = Dum people givin money to anon ‘mous people In hope of some goes nan unspecified amouat of ine? 0 read a comment posted in respons 10 {ory aout one nineyearld g's Kietstater campaign, Sloper nna ee Mactense Wison wanted wo ase $829 so that she cout oto compute arp and reat he mn videogame. (She Sider older brothers were making fun of er. and she ‘ented to prove that gis could do “ech stu 100.) The Aube wa that Kickstater eles ud someone had to be eat 18 year olin oder ost pret, so Mackenzie's ‘mom, Susan Wilson, created the information sting. Stsan ‘Wibon was a Hanardgrodute, « known eaueprenue and had allegedly promoted her daughter’ Kickster ampaign by tweting celebrite ike Lady Gaga ad Elen DeGeneres o ect support. ‘The projet launched on March 20 2013, and within 24 uri nly ha reached i $29 goa Ba isons to geting 1.27 bakers and $22,562 in pledges" Despite ‘he sucees of acampug that raised oof money. Wilson tnd her family ceed negative responses. Te marity ‘of he negative responses seme to come fom these who Dwteved that Sosa Wilton had mrepreserted the nate othe projec, tht she had ated in ad faditening to ost rom her daughters storyand thereby bad ilted Kieksaters project gudeines I also received heacines because of the extreme public response-accusations of & seam and death teat aginst Wikon apd er fs. ‘Ketstatr elu stated that ts erodfunding Service could not be used fr “charity or cause funding” such 36 tn avareness campaign of scholarship nor could pro fet beso a fund ay things ie going on vacation, buying anew camer. or paying for tuton. And 3 project Jd to fave ler goa, “ike making an album. a book fora work fart. A project is not openended Starting {busines for example, docs not uly pce” In ‘tion, for Kickstart to maintain We veputtion a oe ‘othe top crowcanding sevice, tha to mae sae ithept onttl or how the projects were promoted “Shatng 300 projet wi rend, fans, and alowers i on thing. but {evades iba ad sei twee anes” ‘Kickstrter responded to comments onthe Wilbon pro ty alfirming support. spin. “Kickster fund Ing platform for erative projets. The goal of this projet ‘Sto rete a video game, which backrs ae offered or @ S10 pledge. On Kicstarer backers ultimately decide the ‘alt and worthiness ofa project by wheter they decide %o fund i" Honeer, backers and Kickster fas were cerned, vith one se commenting “Ital four ots to be onthe ookut for shady Kicktrtes and personaly ont want tose it devolve ito make 4 wish fund tion Tor already privileged Lids to lara how to sidestep fs websteto prot” And therein ay Kikstatersilemma-how to provide a service tht allowed funding {orotioas commercial vente whe ls prding se suns for backers ‘Klcktrterremlned a service busines, collecting S erent of sucesflyfnded projets safe for his ser ‘Me and had Sept 15 hand otherwise. Hosen adaon to geting comment suchas the ones in response {o the Wisons' project, Kickster came under fe fr ‘Providing no guarantees that inded projects would ect Sly produce promised ems or deer onthe pce fous In September 2012, Kcktarter’s thee founsers had fren nado eteate a specie blog port ted "Ksktarter Is Nota Siore™rominding backers thatthe ventres were oes and, sich, ol be sblect odes sometimes {oag ones, vie in development” Kickstarer made ilar that it asthe pet erevt responsibly to complete projets nd tha it would pul projets rom its web pes It pect promises were obviously uvelisic or violated copyright or patet lay, but others i gave a0 other ‘roertion to backers, And even if projet coulda fly einer, Kickster elected fe. By Aeeping is bust ‘ese mel aa fesorservie commercial vente, ws i in danger of losing ts eepuation and therefore its future More competitors were entering the crowning crowamesting. of pecetopeer lending. space. party ‘oct ofthe Jumpstart Our Business Startups JOBS) ‘Act pased by Congress i Api 2012. The 10BS Act vas esgned to encourege smal busines and startup finding by easing federal regulations, allowing indi as wo bacome investors nd erowalunding by the bes ff Kikstarter was “major cats in siting the way Serall businesses" operated and found sartup capital” CCromdsoureing had already changed the way busiesses fnteated with coasumers! crowdunding needed 10 ‘re oat “ho to bald» community of sspporer Delors Goring, and he” a busines nunched.” But Kiksares Toandess Seemed w believe “a big par ofthe value back ‘rsenay throughout the Kickstart experience” ws o gt Selon look tthe eeatve proces ay the pret comes to fe" Kickstart seemed to want tobe place where ‘people could "priate in serebiag™something they ‘fal earand utimarly becme a sutra iesiton™ that would ove is founders” Was thatthe vison of = ‘ommersil vente, or ae a wish to evenly becomes ‘otforproft tite easefunding organization? What (id Kiketarter want be when i utinately grew up? The Kickstarter Business Model ‘iy 2017 Klekstrter tad become popular “middle -man’~scting as a go-etwee, connecting the entrepreneur fd the capital needed to tn an idea into a realty The Kiksarter laform had lance on Ape! 2.2008, te sed by Perry Chen. Yancey Sue, and Chae Adler, nd was one ofthe fir oinruce the ne’ concent of ‘rowanding asng eapital from the general able In small denominations In 2 socal medafilled world, an ‘pportnity had teen recoprized-you cou coat on your ees to hep you fd yur big es. Many creators. who ‘ere youn. Inexperence, ow on capita or ry combi. on ofthe ale, turned to websites such ay Kickster for financial sopport for ther projects. The se ated 362 ‘anc, oabing them to eal on thee fens, aly, and fterinvgued perso ep them nase mone. ‘When establishing listing on Kickstart, the erestor coll place his er projec sfringm ne of 1 erent ‘tegorie art comics, crafts, dance, design, fashion, fm ‘vdeo, fod journal, games, ne, poopy pad lishing technoly, nd theater. The projet “owner” ied ‘ut some base information, andthe isting was on sway ‘never, certain standards ad to be met before the sting cold go ne. the project met those reqlemens, was approved bythe Kiekstartr tam ard lise. "The guidelines were surprisingly basic and stp ward: Fist and fremest, the Isting had to be ora pojet [As mention pees, i eould not Bef 8 early oF fnvohe case funding ne could it be fund my He kine (o¢a poet. The pelnes also dsalloned prohibited con tent Other than that. he project simply had to int one ofthe 5 designated eatgories. More recenly, however ' few more ctiogs measures were add to ene tht ‘nl real and recognizable stings were created (se the eo ‘on on rls and regulations ter inthis cas), The projet eator now hid to seta deadline forthe fundeabing. a8 well a monetary goa, stating how much money he oF She hoped ase Tr the projet. tht gal wes met the funds were thea tansfered to the poet rctor/ownet Ir eau was not me, however al donating nates were sven refunds and the project mas not funded: Asconally {he projet ownes cou create rewards incentives i ferent eels of donations, to be ected bythe doef the ‘eject mete goal and was thereon fended. The more {donor pledged, the beter the reer, which was usally felted in some way to the project hand. sah a being ‘he fia backart eee the finshed pods Che pecker seconde in vecking Bs wal, paral va collected through Amazon. The projet eeitor a {o have an ative Amazon Payments account when seting up his or her pret. Ifa projet was successfully funded, the money was tanserred from the Backes cet ear 0 the eretor’s Amazon Payments account. I he projet was ‘ot sucessfully funded, Amazon sleased the funds back to the becker cred carde and no charges were lied ‘Kicktarter never actully possessed the fans at all. Once 8 projet was sucesfly funded, Kickster tok S pee ‘ot ofthe tal funds raised, while Amazon took around ‘to percent forte services, Aer both pares deducted ticie commissions. the proeetcreator/omer could stl expt a pgout of about 90 percent af the tal money that wees bed On January 6,205, Amazon deeded to dix Sonia ts payment servic with Kieksater Kickster replaced Amazon with Stripe Payment Service similar4o PayPal" For project crestor, Stipe made it easier to collec the funds as dd not requesting up sep tate account file Amazon did, and backers coud check ‘out fser using ‘Stripe to pay diet ia bank accounts for ert cards It alloned Kieksarter to bie a colle onto en ck’ checkout experience and access ore ‘und anyaberein the word. Kickstarter History AAs previously mentioned, the company was launbed in ‘Api 2009 by is three cofounder: erry Chen. Yancey Sticker, and Charles Air Orsinalased in New York Cys Kickster intly reed $10 milion (rom Union Square Ventures and angel nestor. inline Jack Dorsey of Toute, Zach Ksin of Vimeo, Scott Helertan ‘ot Meetup nd Caterina Fae of Flick” Ill started with {he hoe oa msl scces-a $20,000 tech concet that Pezry Chen as tying to organize atthe 2002 New (Orieans Jazz Fst Chen ad hopes of beieging pa of Ds into towa to perform. He had founda proc venoe fo he concert and even gotten in toch with the DIS ‘management, yet the sbow never happened. The problem ‘tas the lack of expt, and even I he Rad ound wilng Sucker, Chen had wondered wht he would do if the show 1s unable o ait scien interest to payback ary “Tis diemma bought Chest the etzton that the orld needed s better way to fund the arts He thot to ‘mse. “What if people could goto a site and pledge to ‘buy eles fora show? And if enough money was pledesd ‘hey wou Be charged and the show would Mapper I n, ‘wouldn'"" Although Chen loved his ina es, e pt ‘ton the back burner atthe tine, being more fetse on ‘aking music and aot ob staring st tenet company. ‘hyo Jars ltr in 2008, Chen moved back to New York and began fo reconséer the potential fr his business ie, but He was unsure how to go about ulin i That fl. Choa mot Yancey Sieker,the eltoeiehit of elf: ‘yough a mutta end and approached him with the idea of Kickstart, Sreler was intrigued, and the two Began Traintorming Then, about a year ler, Chen was ino rary ould capare atleast 3 percent of the athome con Sump. the size ofthe busines wouk! equal that of Umar share. “The mumbers tow your aie back” said Lamy §, MeWills, resent of Cmpbets international soup." While th company id succesfully enter the mar ‘ef remained wo be seen whether Camptell ad the rig caeringsin place to capture such ake share or wheter Chins homemade soup clare wuld be a dnc 0 ange a Russia's Wes. USS. Soup Revitalization In September 2010, Campnel hunched as fistever ‘umbrella advertising campaign o support allots US soup brand with te sagan ies Amazing What Soup Can Do” Fishin the convenience and hel nei of eanned soup. The new campaign supported Campbels condensed Soups, Campbel's Chunky scups, Campbel's Healthy Request soups, and Campbells Select Hares soups. a8 sell ay cups sold in micromaveable bows and capa under these brands" Despite otter departments lowishing he ‘up division contin osruge, howe. ‘Camphel| Soup was ane of te fist er US. package food mars 1 ees heavily on dering Sodium eros ‘te prouct Tne. The sredction ph wis ne ofthe com ‘ars ig inten acknomledgemont ofthe hel oncious market “The compar ad pursed seducing Soium eves and other arora heh natives pat 0 ‘rear for expected nutritional abn changes in he US. Bot amie stenton on salting, manasement focused lesson other consume neds, tha beter se nd xc Ing varieties sid former CEO Deuglas Conant. “I tink ‘we've adresse the soi ste in vey stir wa ‘The ellen forvs now sto ree some tte advent ‘Campbel Soup Comry began moving u¥ay fom redcing satin produts nd focusing more on “ast adventre as ASUS. sup bsiess was tring cal With Campbell reimeting is product oferings and evitaliring ite op line, Conant ad ede tat hie work ‘ves done and it was tine to rete, He stepped dova at (CEO in uly 201 atthe age of 50. Denise Mores, for rmery president ofthe North Ameria Sou dvsion, took the ens as chit executive. At the time of he pramaton, ny were hesitant to accept be asthe Best caniate For the poston. fe ll the soup dvsion, whieh had been her esponsibility, had teen esng steam and encountering ecining sles under her enue Yet the comparyasetee fonfdece ia her to do the jo and Moerisn assured feryone thal changes were onthe way and shi in cas ‘ees nthe works. Moron sai that Campbell woald ring bth thetaste and vertu” bac tos soups wih new expanded product line offering uigue Flavors and "adding {he ust back by ding away wih Sodium eduction. Firm Structure and Management ‘Campbell Soup was cone by the descendants of fob T ‘Dorney, the ceri who eed condensed soup mote ‘an a century ago In straling tines, te Doran amily fad fced gonizang decisions: Shouts sel the Canpbel Soup Compan, which iad been inthe fami’s hands for tire generations? Should they ire new management 10 ‘eve Maing sles fs chicken noodle and tomato soups ‘nd Pepperidge Farm cookie? Or shold Campbell per fags become an acquier iss? The coma’ nen public Jn 195, hon Willan Margy was the president and CEO. Donne fay members contizued to bold laze portion cote share ter CEO David Johneon lt Campo 1988, the company weakened and lest easter” ua Douglas Conant became CEO and ironed Campbel Io on ofthe food industry's best perormers ‘Conant became CEO and cretor of Campbell Soup Company in January 200), He joined the Campbells team with an exensve background in the processed. tnd packaged fod industry He had spent 10 years ith ‘General Mil filed top management poslons in mariet. Sng and satey at Kraft Foods and sered a president of [abtco Foods Conant worked tod the foal 0 ple ‘menting the Campbell’ mission of "bullding the work's ‘most exanninay food company by nourishing people lines everyere. evry da" He was conient tht the company ha the people, the pede, the capitis, ane {he plans in place to ati that mision Under “Conants ection, Campbell made many reforms through investments in improving product galt ockaging, and mareting He worked 1 create companycharacterized by ianonation. Dui his ene, the co pny improved its financial profile, peraded Hs spy hain sytem, developed a more postive relationship with ‘scustomers, and enhanced employee engagement. Conant focesed on winning in bh the maretplae and the wore ‘ace His ellote proce an ineeae in et sls from ‘571 bin in fiscal 2008 to $7.67 blo in scl 2010." For Conn, the mn tals fr estes fing the deste of man) bands plod simple meals, shed sch, and epee ted eer 201, he baking and aching segments sles creased perce primacy di 0 ‘aren eonons, Peper Frm sls wee comparable to thowe a year ere, a the atonal aes fom the ea Ston of eee Pais Ine, and volume gis wee oe by Increased prometenal spending Some of the ess fr this rorih ere te brands postionng advertising invesmens, nd impronerents and ations i the dniation sae, (Conar als Secured at agement with Coca North “Amen and CoceCola Entries Ie. fo dsicbuton of Capel’ eased snpeserve beeps inthe Unie ‘Sates ad Canada hough the Coes Cola ote network. Tn sal year 210 the company conned is foes on otveringsipetiorloggterm taal shreowaer returns by ececutng he flowing seven key strategies” ‘+ Grow is con brands within simple meas baked sacks, and ely beverages. ‘Deter higher level of consumer sasicton though ‘serior innovation ocsed on welineis wile providing good vale, quay. and convenience ‘+ Mate is products more broadly avalabl and relevant in ovsting and new markets consumer segments and ‘© Suengthen its busines though outside partaeshis sau sequisiuons. ‘Increase margins by improving price elation and onparswie otal ost management. ‘+ Improve eral ppnizatonl exeelene, dvs, sndergigerent “+ Acsance x power sommitent 0 ssa and Coxporate social esponsbiy ‘ther maior focses for Conant ana Campbel Soup ‘ere care for their eustomers' wellness nest, overal prod {ct guilty. end product comrenlence. Some ofthe main considerations regarding wellness in the US. market were ‘bent and high blood presse. For example, building on ‘he success ofthe VI Fusion juice ofeings, the com: puny planed to lneduce a numberof new V8 V-Fusion Pius Tea product In he tated snacks category, the co ny planed to continue upgrading he health eredentals ris cracker (or savory bse) offerings. Responding to consumers valucerieted focus, Campbells condensed loupe were relaunched with «new contemporary pactag Ing design and an upgrade tothe company’s sravifed shelving system In 201, afer 10 years leading the company, Conan reed His woeesion, Dente Morrison, hal ried or Conan fr cute some time. ot just at Campbell but at ‘Naleo e wll ar nthe eacers. In Ags 201, fis day 3 CEO, she was set on empl ne vison forthe compan: "Staie the sop an sample msl asses, end international, gf fase in ely ber gs ad baked snacks-and add tack the sat" We the Younser generation now making up an neresiney ze per ents ofthe population Moron kn that he comers ad to change in oner fo increase te appeal of ts products Atha ue, te US. population inched 80 malign pepe between the aes of 1 and 34, apprximaely 25 erent ofthe population. Baryon in he oie as chi exci, ‘Mortison dsptched Camptell employee to hip nubs ncn Atsin, Terax Portand, Oregon: London and Paro find out what these potential castes wanted” “To build empoyee enzngerieat. Campbell provided ‘manage iting acros the organization. This ain {hat one part ofthe eure at Capel Univer, the Company's intra empleye learning and development rogram. Exemplary managers ult strong engagement Among thei teams through consistent action planing. The company enphaszed employee’ innovation capable, Jeadershipbshavor, workplace flexibility, and elites. Challenges Ahead Ine new oe Morison si she planned to “accelerate the ‘atearinnoraton”atthecompry. Morison plane Bow the compan’ brands through «combination of heathie ‘od and everageolrng slab expansion andthe use of techooloay to woo younger consneers Whe imation a ‘ter play asi with the ex rocessn nds. ‘Morison si ta innovation mas «kay to te company’s ‘ure suzcess AS an example she died Campbells delop- ‘ment ofan Phone appleation that provided conser wth (Campbels Kita recipes. Te eompan's marketing team devised the plan asa Way to appeal to ecologies. ‘ilnnskeseraton consumers Morr i.” In fiseal year 2017, under the onvingleagersip of Morrison, te company continued its focus on unleashing the power ofits over! potential and performance. The fate plan wast focus on fou ey strategies enhance ‘he company serowth 1. Blate Trust Though Real Fod, Transparency and Sistuinalty 2: Inrease Engagement and Drive Sales Though Digtal and ECommerce 3. Coatinue to Divers the Product Potton Health tnd Welieing “4 Expand the Companys Peter in Delong Maicts ‘Yet mor than af yer nto he oernanes abst da kenar spose about Merion taking oe Tey tl sored the doubt abot whether Morrison va he ict ‘hoe rather than some new blond sa CEO elaceentIndustry Overview ‘The US. packagedfood industry had recowed tater curenevaie owt in cet years mainly duet ese In ‘commodity prices In real volume, however, many cles ties aw slower growth rates because Americans began Yo at out more often again. This dynamic changed fora cou. ‘eof year when cooking at home became more popular fllernae in response to the ecstion and he sharp ie Incommouity pies in 2008." ‘Aer ears of expunsions and acquisitions, US. pckaged- fod companies were benno devas. August 201 Kraft Foods announced ttt woul spi ino two comps ies alba eused biscuits and confectionery enterprise and a domestaly focused chess, chile prceseéeats nd readyonels fim. Aer purchasing Post cere rom Kraft in 2008, Rakorp Holdings span of i Post sees Tausnes (Pos Holigs Inc) in February 2012" “Though supormarksts were the mn etal chanel for touvine pckased food, other competitors were saiine ‘cacton by ofring lowe prices or more coneninee, The recession forced shoppers to consider alemaie fetal hanes as they looked for way to save mone. A big be fila of this consumer tend was the discounters, wach ‘arn wert and national brands than spermarhss ut offer lover prices ntetur. Fo example dlr tore cine Dollar Genera and Fanily Dol expanded thet food selections wo inetese thle appeal. Drugstore clas (CVS and Walgreens expanded thet ood selections wel pec urban aces, to verse their actions torof cormenienc, Mass merchindser Target continued 0 ‘expund te Pres native, etring tres proce fozen food, diy produts. and dy groceries “Te ineasing avait of reigerton an othe kinds of storage space in homes inuened the demand for pock feed goods In emerging markets However or consunes ‘tho lacked the bility to preserve and ee ase unites US. companies teen sling sulle puckages. wiht otons ‘hat ould be eoasumed more quel (ee Exubt 3. [SKvISIT 3 Leseng US Ager Expo Destnatone, by Vue SUS) cron 70338201385 chs owe sa0seisz2 consis Meco 17,656,108699. Mess ExopenUiion-28 11645338464 EropeonUon-28 sap ar4si029¢ pee sue aan 5708473735 Seu Ken Honan 3804972385 Heng ong Tate ‘3ce0164670 tan Prone 2463200058 Genta Inne 2386390705 Indore vewan 2384728383 Patpaos Thala 1470071504 Tatra They 1368728465 ney sate 1304071600 stata 972.729209 wot szaziersare m2s10826805 chins assoasieat? namias06e cea 746s 1800511509 ono 19485604901 12308001795 Japon 36372381 ‘1691006050 Eopeon Unon-28 126040148 671505356 seunkaves 5811505 952481222 HongKong 4950103838, asaniz2 Tawar saonst6ate 2563239620 ednesie 2963578.06 2AM1427116 Pies 2774200054 2417382646 — Guloaba 2310665900 2408571258 Vena 2zas15a0 1713218105 ney 2009838119 tsrsHt opt 1958.07.190 1452910628 baat 1408763Competition ‘Camptoll operated in the ight competitive global food Industry and experienced worldwide competion for all ot ‘ts prineipalprodets. The principal areas of competition ‘ere brad recognition quai. pice. advertising. promo ‘on, convenience, and service. (See Exh 4 and 8) Nestlé Nestlé was the wor mumberane fod company in terms of sales, the wavld lad in coffee (Nescafe), one ofthe Soi’ gest ouledwater (Perit) makers and top ‘erin the pet fod business (Ralston Pana). Its most ‘elbknown global brands included Baton, Fries, Ma. ‘Nescafe, Neues, nd Nes. The company owned Gerber Products, Jenay Crag. about 78 percent af Alco ne {ophbalmic drags, comactens solutions and equipment ‘or ocala super) and lost 28 percent of LOrea"Tn Jaly 2007 i purchased Novas Medal Nuon, and in ‘ust 207 it purchased the Gerber anes fom Sandor Ltd with the gol of becoming « nutrionalponerhouse Furthermore by ading Gerber Baby foods wots by fo ‘mula business, Nest became a major player i the US. ‘ay i sector. General Mills General Mis was the US. numberone cereal maker, behind Kellogs. fighting for the tp spt on consent ass Is brands iscluded Cheerios, Chex, Toa, Ki. and ‘Wheaties. Genera Mills was so brand leader in et (Gold Medal), baking mines (Bety Crocker, Biscuit), Adnner mines Hunburger Helps) rt socks (Frat Rol Up ruin anacs (Chex Mix, Pop Seer and yogurt (Colombo. GoGurt and Yop). in 2001 acasired Pilsbuy from Diggeo and doubled the company's sx, ‘making General Mis one af he word's largest fed com tis. Although most of sales came fom the United Sates, General Mils was trying to gw the reach and pos ‘ion oft brands aroun the wold” The Kraft Heinz Company ‘The Krat Food Group and H.3. Heinz Company closed merge dealin Jly 2015. The combined compa was falled The Kran Heinz Compan and became the hid lures fod company in Novth America and Fh lrg ‘tin the worl. is most popular brands neaded Kral heees beverages” (Matwell House cole, Kool Aid ‘kinks. comenien meas (Oscar Mayer meat and Krat ‘mac cheese) grocery fre (Cool Whip Sake N' Bale), and nuts (Panes). Kraft Foods Group was looking to ‘enucitte its basnes in North America” HJ. Heine ‘nd thosands of products, Even prior othe merge, Heine routs enjojed Fistor Second place by marketshare in ‘more than 50 counties, One of the word's largest fod ‘roducers, Hein produced hachsp, condiments ses frozen foods, eats. pasta meals, infant food. and ote ‘ocessedfoed produ is agship product was kteup, andthe company dominated the US. ketchup markt. ts leading trans inelided Heinz ketchop. Lea & Perrine sauces, Orelda ffozen potatoes, Boston Markt, TGA Foday’s aba Weight Watches fod In 2013 Heinz grad 1o be acauied by Berkshire Hathsnay and 30 Capital.” ‘The posteneraer Kraft Heinz Company was lo ddiated ‘o oferig heathy food products os eustomers by adapt ‘ng to changing tastes and consumer preteens, Financials In the 2016 sa yea. Carmpbels earings from contin ‘ng operations dacrese rom $556 millon to 8563s on, deo diseuptions in pradct aalbiity for a period of time. Organic sales decined 1 percent, while adjusted farnings per sare (EPS) fom continuing operations ‘ecensed from $2.13 to L82. The ler pe ofthe sales ame fom the US. market, whereas abou 19 percent of ‘he company's ol sles were from interational markets fue the US. (ce Exubis 6,7, and 8.) ‘With eg fo franca, Morison stated ‘nd dete api pert 0 ‘Stock ami the nenne ecto chang ‘elit an dees noe es Hower ost lea inpacs were betty the bee inate ling pes in 201 tebe os of Snes by deren ou” Sima, for Americas Simple Meals and Beverage ivsog, Campielfssles decteised 2 perent amid the Acie in V8 beverages and sup, but inreased costs ‘ere up. wearing anay margins. Alb, the Gita Biscuits Un Sate division sales dcresied 3 percent but forthe {Camptet Fresh divon sales ineresseT perce, which could be beter ithe company had nt gone tixough the ‘tole of exciton ses and cop destruction Sustainability CCamptet Soup Compary was named 10 the Dow Jones Sisiaiabiity deus (DIS1) repeatedly and to the DISH World odes. This independent ranking recognized ‘he compay’s stategic and management appreach to eivering economic, enitoamertal and socal pet. ‘mance, Launched in 199, the DIS tracked the financial Patornaace of leoding butesbiliedrven companied ‘ride In sletng the top performers in each bust ss scot, DISH revlened companies on several general anu industeyspeciic topics ralalad 10 eeonom, env ronmental, and social mensions, These ineled corpo fate enernance, envionment! poe. cima sat, ‘human capital development andlor practices Campbell ‘seladed sstaeabty and corporate socal esponsty sone af its seven core business sates." Campbells ‘Napoleon, Oe plant had implemented anew renewable0 zu ce te tw ous oa sat on oc ob sat set ww so. * be be v8 eres eu vor ce ve 6 0 oc ze 0 te eu or uy or oF ez o vo o 6 i ee ou oz so zu 60 90 n 9 zw or ot oz st o e es or a a ze oxo veo ase 09 veo onsis 04 as as owe ae ae est ust use use i 60 pa (osntpn ro ‘Warsed2ae9 aeuouty t oe losrdop emus We eee losnenunnury sonny {asntop 26 wey ou (aotosn say ood Luotosn ys oan ” ep dons wate ede HHH Ka siyaco Headey LfIHXS[EXHIBITS Canpbet soup Top Comper Stack Prices a 26,2014 Mar 262017 —_= sof — Te a Ta Ta ext 6 carpet ane stoves Nets $791 sac $9.08 Cassa emenes oto proc lt sia 530 528) aetg andsalrg epenses 93 a0 ey piste menses on 1 16 esearch an evelopment exgeses oy " m ne exeses (come 1 2” 2 Resting cages a” 1m 8 Tot eos a enerses 7001 7028 7001 arias eee intrest ara es 90 0s sa rirest ease 115 8 m2 rere rcome ‘ a 3 ngs efor es oo os ae Tex on ceings 26 2 mm ene tom canting easton 563 6 m4 xn rm ascot operons = = a Net ennings 53 6 15 es et orig ss) etree ronan eres - - ov Net uring tibet Campbel Soup Company Sos 8 eS tse Per Share — Base ings coniving patton atte CampbetSou Compary $$ 213 $250