Campbell is discarding the 'Soup' component from its moniker
Campbell, established for an impressive 155 years as the Soup Company, is contemplating dropping "soup" from its corporate name, rebranding as The Campbell's Company. Present-day consumers are gravitating towards snacks rather than ready-to-serve soups, and the corporation has expanded its portfolio by acquiring various food lines.
Campbell's all-encompassing assortment now includes snack powerhouses like Goldfish, Snyder’s of Hanover, Cape Cod, Pepperidge Farm, and others. Moreover, it recently acquired Sovos Brands, the brains behind popular Italian food brands such as Rao's sauces.
As stated by Campbell's CEO Mark Clouse on Tuesday, this strategic shift preserves the company's recognized iconic name, reputation, and accumulated equity while effectively mirroring its diverse range of products. This name transformation is contingent upon shareholder approval at the annual meeting scheduled in November.
Although soup continues to hold significance in Campbell's business, it now represents a smaller portion of their overall sales.
In the previous fiscal year, Campbell's snack sales soared by 13%, while its soup sales merely increased by 3%.
Established food corporations like Campbell are adapting to capture a substantial portion of the blooming snack market, conservatively estimated to be worth more than $200 billion by market research firm Circana.
According to Circana, nearly half of Americans indulge in at least three snacks daily.
In August, Mars, the creator of M&M’s, entered into an agreement to acquire Kellanova, a company that owns Cheez-Its and Pringles, in a deal worth almost $29 billion.
As Kellanova commented at the time, "Snacks represent a substantial, appealing, and lasting category that continues to gain prominence among consumers."
Campbell's decision to rebrand as The Campbell's Company is driven by the shift in consumer preferences towards snacks, as soup now represents a smaller portion of their overall sales. With the acquisition of snack powerhouses like Goldfish and Sovos Brands, business expansion into the attractive and growing snack market is a strategic priority for the company.
