The Campbell’s Company (NasdaqGS:CPB) FY 2025 Annual General Meeting November 18, 2025 09:00 AM ET Company ParticipantsMick Beekhuizen - President and CEOCharles Brawley - EVP, General Counsel and Corporate SecretaryKeith McLoughlin - Non-Executive Chairman of the BoardCailin Dendas - Senior CoordinatorMatthew Prescott - RepresentativeOperatorHello and welcome to the annual meeting of shareholders of The Campbell's Company. Please note that today's meeting is being recorded. During the meeting, we will have ...

The Campbell’s Company (NasdaqGS:CPB) FY 2025 Annual General Meeting November 18, 2025 09:00 AM ET Company ParticipantsMick Beekhuizen - President and CEOCharles Brawley - EVP, General Counsel and Corporate SecretaryKeith McLoughlin - Non-Executive Chairman of the BoardCailin Dendas - Senior CoordinatorMatthew Prescott - RepresentativeOperatorHello and welcome to the annual meeting of shareholders of The Campbell's Company. Please note that today's meeting is being recorded. During the meeting, we will have ...

The Campbell’s Company (NasdaqGS:CPB) FY 2025 Annual General Meeting November 18, 2025 09:00 AM ET Speaker5Hello and welcome to the annual meeting of shareholders of The Campbell's Company. Please note that today's meeting is being recorded. During the meeting, we will have two question-and-answer sessions. The first will address questions related to the formal agenda items, and the second will address questions related to the operations of the company. Shareholders who signed in with their 15-digit control ...

Core Insights - The transition to regenerative agriculture in Europe is significantly underfunded, with only 2-6% of the required funding currently available [1] - Global agri-food systems need annual investments of $1.1 trillion over the next five years, but current investment flows account for barely 5% of that amount [2] - Major food companies are increasingly recognizing the need for collaborative financing structures to support the transition to sustainable practices [3][4] Investment and Financial Models - Food companies are shifting from a payment-for-services model to an investment model, focusing on leveraging financial resources to create more investment opportunities [4] - The financial services industry is encouraged to invest in food systems transformation, but unlocking large-scale action has proven challenging [12] - New financing models are emerging, including de-risking strategies that lower risk exposure for capital providers and enhance the business case for farmers [29][30] Corporate Initiatives and Commitments - Companies like PepsiCo and Cargill are setting ambitious targets for regenerative farming, with PepsiCo increasing its target from seven million acres to ten million [5] - Nestlé has invested SFr1.2 billion ($1.48 billion) since 2020 into regenerative approaches, initiating hundreds of pilot projects [16] - McDonald's has announced a $200 million initiative to promote regenerative grazing practices across four million acres in the US [33] Challenges and Market Dynamics - Farmers face significant financial shortfalls when transitioning to regenerative practices, with potential payback periods still leaving them with a shortfall of €1,400 to €4,100 ($1,608 to $4,708) per hectare [7] - The current agricultural system is described as "badly broken," necessitating urgent changes to avoid long-term systemic failures [6][9] - There is a growing recognition among food companies of the need for long-term contracts and collaborative approaches to ensure shared environmental responsibility [23] Regulatory and Policy Environment - Governments are slowly introducing subsidies for sustainable practices, but critics argue these measures are insufficient [20] - The European Commission has projected significant agricultural losses due to climate change, highlighting the urgency for a shift to regenerative practices [9] - Political resistance remains a barrier to accelerating regenerative production, with some industry groups still hesitant to embrace necessary changes [19]

Core Insights - PepsiCo, in collaboration with Griffith Foods and Milhão, has launched a direct farmer incentive pilot program aimed at promoting regenerative agriculture in Brazil's Cerrado region, which is crucial for global food security [1][2][3] Group 1: Program Details - The pilot program employs a hybrid "Payment for Practice and Payment for Outcomes" model, compensating farmers for adopting regenerative practices such as composting and reducing chemical fertilizer use [3][5] - The initiative will initially cover 7,000 acres, with plans to expand to 30,000 acres, representing PepsiCo's total corn sourcing volume in the region by year three, with a total investment of $1 million [3][5] - The program aims to address financial risks faced by farmers transitioning to sustainable practices, thereby improving soil health and reducing greenhouse gas emissions [3][4] Group 2: Strategic Importance - The Cerrado region is responsible for over 60% of Brazil's soybeans and significant corn production, making it a vital agricultural area facing threats from deforestation and climate stress [2][5] - This initiative is positioned as a potential blueprint for industry-wide transformation, encouraging collaboration among competitors to drive systemic change in agriculture [4][5] Group 3: Long-term Goals - PepsiCo aims to promote regenerative agriculture practices across 10 million acres by 2030, contributing to climate resilience and sustainable food systems [5][6]

Core Insights - PepsiCo, in collaboration with the Alliance of Bioversity International and CIAT, announced a significant update to the Climate Resilience Platform (CRP), aimed at helping agricultural stakeholders address climate change impacts [2][3] - The updated CRP 2.0 enhances capabilities and accessibility, promoting regenerative agriculture practices and building a more resilient agricultural supply chain [6][8] Development of the Climate Resilience Platform - Originally developed in 2023, the CRP translates climate research into actionable insights for agricultural stakeholders, enabling them to anticipate yield risks and implement targeted interventions [4] - The platform has been recognized for its transformative potential in food and agriculture, distinguishing itself from proprietary tools that may impose high consultancy fees [4] Funding and Collaboration - The September 2025 release of CRP 2.0 was co-funded by the Foundation for Food & Agriculture Research (FFAR), which contributed $1 million to enhance the platform's impact [6][8] - New organizations, including Olam Agri and Bonsucro, have joined the platform, contributing funding and data to support climate adaptation and agricultural innovation [10] Enhanced Features of CRP 2.0 - CRP 2.0 introduces quantification of climate risk exposure and opportunities in business terms, including investment requirements and projected yield improvements [9] - The platform has expanded to include two new crops and six new countries, enhancing its reach and fostering collaboration among organizations [9] Industry Impact and Future Goals - The collaboration aims to empower stakeholders across the food and agriculture system to make informed decisions and strengthen supply chains [7][11] - The initiative reflects ongoing efforts in climate resilience and regenerative agriculture, with a focus on creating long-term value for supply chains and securing livelihoods for farmers in vulnerable regions [11]

Core Insights - PepsiCo launched its first-ever Global Farmer Awards to honor outstanding farmers, farming families, and advisors from its global supply chain, emphasizing the importance of agriculture in its business model [1][3][4] - The Perry Family Farm from Alberta, Canada, was awarded Farmer of the Year, recognized for its leadership in regenerative agriculture and long-standing partnership with PepsiCo [2][5] - The awards align with PepsiCo's pep+ Positive Agriculture agenda, which aims to implement regenerative practices across 10 million acres by 2030, having already achieved over 3.5 million acres as of 2024 [6] Event Highlights - The awards ceremony took place at PepsiCo's headquarters in Purchase, NY, gathering nearly 60 farmers and advisors from 19 countries [1][3] - Finalists were recognized across six categories: Sustainability, Next-Gen Farming, Leadership & Advisory, Heritage & Growth, Quality, and Farmer of the Year, showcasing a diverse representation of farmers [4] - The event included a broader agenda with plenary sessions, a Taste & Tell Expo, and panels where farmers shared regenerative practices with PepsiCo executives [9][10] Strategic Initiatives - PepsiCo is investing in farmer training, technology, and collaborations to enhance soil health, biodiversity, and watershed improvements [6][7] - The Climate Resilience Platform was launched as a digital tool to provide farmers with insights on climate conditions and potential impacts on yields [7] - The STEP Up for Agriculture initiative, developed in collaboration with Unilever and other retailers, aims to strengthen farmer support organizations and promote regenerative practices [7]

Core Insights - JDE Peet's celebrates ten years of its Common Grounds farmer programmes and urges the coffee industry to adopt the Regenerative Agriculture Coffee Roadmap to secure the future of coffee amidst climate challenges [1][2] Group 1: Company Initiatives - The Common Grounds farmer programmes have reached nearly one million farmers over the past decade, enhancing their resilience against climate risks [2][3] - The programmes focus on regenerative agriculture, supporting farmer prosperity, and creating thriving coffee communities through a data-driven approach [3][7] - Since 2015, the programmes have implemented regenerative practices on 50% of the farms covered, contributing to 83.2% responsibly sourced green coffee globally [7] Group 2: Industry Impact - The Regenerative Coffee Roadmap aims to boost incomes for over three million smallholder farmers, increase coffee exports by 30%, and reduce greenhouse gas emissions by 3.5 million tons of CO₂e annually [6] - Approximately 12.5 million coffee farmers globally, many of whom are smallholders, often lack resources for development and resilience [7] - JDE Peet's sustainability strategy is built on three pillars: Responsible Sourcing, Minimising Footprint, and Connecting People [7]

Financial Data and Key Metrics Changes - Fiscal 2025 results did not meet expectations, with organic net sales and adjusted operating profit falling short, despite exceeding cost savings and free cash flow conversion goals [4][5][10] - Delivered savings totaling 5% of cost of goods, which is at the top of the industry, helping to offset input cost inflation [5][6] - Strong free cash conversion in fiscal 2025 allowed the company to return $2.5 billion to shareholders through dividends and share repurchases [6] Business Line Data and Key Metrics Changes - The North America yogurt business was divested, and White Bridge Pet Brands was added to the North America Pet segment, focusing on categories with stronger long-term growth opportunities [6][8] - The company has turned over 30% of its net sales base since fiscal 2018, contributing more than a point of growth to projected long-term category growth exposure [6][10] Market Data and Key Metrics Changes - In Q1 fiscal 2026, there was a low single-digit decline in organic net sales and a double-digit decline in adjusted operating profit and adjusted diluted earnings per share [10][11] - The company expects declines to continue in Q2 before improving in the second half and returning to growth in Q4 [11] Company Strategy and Development Direction - The Accelerate strategy remains the framework for driving long-term growth and returns for shareholders, focusing on restoring volume-driven organic sales growth in fiscal 2026 [4][8] - Three priorities for fiscal 2026 include returning the North America Retail segment to volume growth, accelerating growth in North America Pet, and driving efficiencies to reinvest in growth [8][9] - The Remarkable Experiences Framework will assess brands across five dimensions to identify strengths and opportunities for improvement [9] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a challenging macro-economic backdrop and value-seeking consumer behavior impacting top-line results [5][7] - The company is focused on balancing reinvestment for long-term growth with cost savings to fund that growth [8][11] - Confidence in the ability to deliver fiscal 2026 goals is emphasized, supported by strong brands and industry-leading capabilities [11] Other Important Information - The company reported preliminary voting results indicating that all management proposals were approved, while both shareholder proposals failed to gain majority support [24][25] Q&A Session Summary Question: Approach to supporting healthy diets and providing nutrient information - The company has a long history of providing access to important nutrition and has consistently evolved its portfolio to improve nutritional characteristics [28] Question: Thoughts on transformational M&A activity in the food industry - The company maintains an always-on M&A capability and will continue to look for opportunities to upgrade the growth profile through acquisitions and divestitures [30] Question: Global transformation initiative and expected savings - The global transformation initiative is designed to enhance processes and free up resources for reinvestment, with savings expected to be utilized for growth investments [31]

Core Insights - The program directly engages with farmers in Alabama, Georgia, and Florida to support agricultural practices that protect and improve natural resources while also reducing and removing greenhouse gases [1] Group 1 - The initiative focuses on sustainable agriculture practices [1] - The program aims to enhance natural resource management [1] - The effort includes reducing greenhouse gas emissions [1]