The Campbell Soup Company, a 155-year-old company, has announced that it plans to drop “soup” from its corporate name and rebrand as The Campbell’s Company. This decision is being made as more consumers are reaching for snacks over ready-to-serve soups. In addition to its lineup of soups, Campbell now owns snack brands like Goldfish, Snyder’s of Hanover, Cape Cod, Pepperidge Farm, and others. They also recently acquired Sovos Brands, maker of popular Italian food brands like Rao’s sauces. CEO Mark Clouse stated that this name change retains the company’s iconic name recognition while reflecting the full breadth of the company’s portfolio.
While soup has been an important part of Campbell’s business, it now represents a smaller portion of its sales. Last year, Campbell’s snack sales grew by 13%, while soup sales grew by only 3%. The snack market is currently valued at over $200 billion by market research firm Circana, with nearly half of Americans stating that they eat at least three snacks a day. Legacy food companies like Campbell are pivoting to gain a larger share of this growing market, with Mars, the maker of M&M’s, also making a significant move by agreeing to acquire Kellanova, the owner of Cheez-Its and Pringles, in a deal worth almost $29 billion.
The decision to rebrand as The Campbell’s Company is seen as a way for the company to better reflect its diverse portfolio of offerings beyond just soup. This new name allows Campbell to maintain its name recognition and reputation while acknowledging the changing preferences of consumers. The name change will need to be approved by shareholders at the company’s annual meeting in November. Campbell’s move to expand its snack offerings is in line with broader industry trends, as more companies are recognizing the growth opportunities within the snacking category and are seeking to capitalize on this trend.
With the snack market continuing to grow in importance with consumers, companies like Campbell are looking to diversify their product offerings to meet changing consumer preferences. The acquisition of Sovos Brands and other snack brands by Campbell positions them well in this competitive market. By focusing on snacks, Campbell is adapting to the shift in consumer behavior and is aligning its business strategy with the evolving food trends. The success of Campbell’s snack sales compared to its soup sales demonstrates the changing landscape of the food industry, where snacks are becoming an increasingly important category for food companies to focus on.
Overall, the rebranding of Campbell as The Campbell’s Company reflects the company’s commitment to embracing new consumer trends and expanding its product offerings beyond traditional soup products. By recognizing the growth potential of the snack market and making strategic acquisitions such as Sovos Brands, Campbell is positioning itself for future success in a rapidly changing industry. The decision to pivot towards snacks aligns with broader industry trends and reflects the company’s innovative approach to meeting consumer demands in a competitive marketplace.
