Stock Up on Campbell’s Soup: The Company is Shifting Its Focus Away from Cans
Campbell’s Soup Co. has announced that it’s making major changes to its brand to include a move away from its signature products: canned soups, a category that has been lagging in sales for years.
Campbell’s, which also owns popular brands including Pepperidge Farm, V8, Prego and Bolthouse Farms, will be creating new product divisions rather than sorting by brands.
According to Reuters, Campbell’s said the reorganization “would shift its ‘center of gravity’, a reference to its troubled soup business that has managed to boost sales only twice in the past five quarters.”
The company will be moving from five to three divisions: America’s simple meals and beverages, global biscuits and snacks and fresh foods such as baby carrots.
Among the new product focus are soup pods that can be made using a Keurig coffee machine.
Canned soups, while iconic as they may be for Campbell’s, have become a less desirable food in recent years as many Americans are focusing on adding fresher foods to their diets. Additionally, the presence of bisphenol-A (BPA) and similar chemicals common in canned foods have been a big cause for concern, even though Campbell’s says it has taken steps to remove the chemical.
Reuters also notes that a rise in competing brands, some of which are organic and therefore perceived as healthier, have taken away market share from Campbell’s canned soup category.
The move is the latest step for Campbell’s which has been struggling over the last five years to turn its sales around, prompting the purchase of Bolthouse Farms, which produces fresh juices and produce items.
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