Campbell Soup Poised to Make a Comeback
In a world where sparkling seltzer’s and low-calorie snacks are becoming increasingly popular, food companies known for their delicious, yet relatively unhealthy snacks and beverages must modify their game plans in order to prevent failure.
An example of a company that has fallen victim to these changes in consumer preferences is the Kraft-Heinz company, which has put forth very lousy performances heading into 2020 and must soon redirect its course of action. Campbell Soup Co. (CPB) must take note of these struggles that Kraft-Heinz faces, and improve on and innovate their products in order to survive in today’s market.
Recently, Campbell has been making moves in order to cut back on debt and walk away from unsuccessful products. On July 12th of 2019, Campbell signed an agreement to sell Kelsen Group, a producer of baked snacks out of Denmark. This was a move that CEO Mark Clouse describes as one that “supports our strategy to focus on North America where we have iconic brands”, according to the Wall Street Journal.
The company has also focused on improving in areas where they feel they can profit, specifically brands that still hold significant value with younger consumers. This resulted in the acquisition of Snyder’s Lance, Inc., a company that along with Pepperidge Farms has allowed for a sturdy sale of popular snacks such as Goldfish and Pretzels, positively affecting the company’s sales.
However, Campbell’s still faces a large problem. In 2018, Campbell’s Soup Co. saw a slump in the performance of their soup brands, due to both consumer distaste for processed foods and stiff competition from private labels. This is a huge problem for the company as soup is the very thing that the company is known for.
What many pundits feel the company needs to do, and has become CEO Mark Clouse’s main focus, is to revamp their soup products. Campbell’s can do this by catering to a more health conscious crowd, and therefore must focus on fresh ingredients and fewer processed ingredients.
The company has also started investing heavily in social media. An area, Campbell’s ignored for too long.
Innovation should also be a main focus in order for the soup company to take back it’s throne as the king of soups. New flavors, impressive ingredient labels, and intelligent marketing are a few areas in which Campbell’s is placing its focus.
Campbell Soup Co. will have to invest a lot of time and money in order to improve its soup products, however, the investment will provide a solid foundation for the company to work from and allow them to avoid the fate that Kraft-Heinz has faced.
Written by Matt Durborow & Edited by Alexander Fleiss