Campbell Soup Company (NYSE:CPB)

CBP today announced that it has entered into an agreement to form a joint venture with Swire Pacific Ltd. to support the development of the company’s soup business in China. Called Campbell Swire, the new company will begin operations in early 2011. Campbell will have a 60-percent ownership stake in the joint venture, giving it a controlling interest. Profit and losses will be shared in proportions consistent with each party’s ownership.

“We’ve made great strides in understanding the market and refining our products to appeal to Chinese consumers. This partnership will help unlock the potential of the commercial soup market in China by pairing Campbell’s brands, recipes and consumer insights with Swire’s sales force, logistics capabilities and overall market knowledge.” .China is now the world’s second largest economy and has one of the highest rates of per capita soup consumption in the world. Approximately 355 billion servings of soup are consumed in China annually—nearly all of them homemade. Douglas R. Conant, Campbell’s President and CEO, said, “We continue to believe that developing a commercial soup market in China represents a tremendous business opportunity for our company. Realizing the benefit of such an opportunity requires a long-term commitment and the right strategic partner. Swire has been an effective distribution partner for Campbell since we launched our