The 155-year-old Campbell Soup Company, first to market canned soups, wants to drop the “Soup” a part of its name and use only the Campbell’s Company name. Shareholders will give you the option to vote on the proposed name change in November at Campbell’s annual meeting.
The request reflects Campbell’s broader strategy to expand beyond soups into higher-growth categories similar to snacks, which have shown promise. Sale of snacks increased by 13% for the company last 12 months, while soups increased by 3%. Almost 48% Campbell’s fiscal 12 months 2023 net sales got here from snack sales. Meanwhile, Campbell’s Goldfish brand achieved annual net sales of $1 billion in March, a feat achieved only by one of the company’s products: the iconic soup with a red and white label.
Campbell CEO Mark Clouse said o investor event on Tuesday that the “subtle but important” name change more accurately reflects the “full scope of the company’s portfolio.” Campbell took over the company earlier this 12 months Sovos brandsmaker of Rao’s sauces, Noosa yogurts and Michael Angelo frozen entrees for $2.7 billion.
The company also made other acquisitions, including: The deal was price $4.87 billion for the snack company Snyder’s-Lance in 2017.
Campbell’s Tomato Soup. Photo credit: Richard Levine/Corbis via Getty Images
Campbell’s leadership he said on Tuesday that they see stable soup sales, annual sales growth of three% to 4% for snacks and 1% to 2% for meals and beverages.
Although the company does not expect annual growth in soup sales, it continues to innovate and invest in this category. Campbell recently introduced latest spicy soup flavors, including Ghost Pepper Chicken Noodle soup, to appeal to younger customers. Older populations tend to buy more soups, so sales in this category may increase for groups similar to older millennials, the company says.
Campbell fourth quarter earnings for the three months ended July 18, 2024, show that total net sales increased from $2.068 billion to $2.293 billion from the previous quarter.
“Over the past five years, we have been on a transformational journey to redefine our company,” Clouse he stated.