Campbell’s Soup Company, a 155-year-old company, has announced its plans to drop “soup” from its corporate name and rebrand as The Campbell’s Company. This decision comes as more consumers are turning towards snacks and moving away from ready-to-serve soups. In order to cater to this changing consumer behavior, Campbell has acquired several snack brands in addition to its soup line, such as Goldfish, Snyder’s of Hanover, Cape Cod, Pepperidge Farm, and others. They also recently purchased Sovos Brands, known for popular Italian food brands like Rao’s sauces.
The CEO of Campbell, Mark Clouse, stated that this name change is a subtle yet important move that aims to retain the company’s iconic name recognition while better reflecting the full range of its portfolio. The change is subject to shareholder approval at the annual meeting in November. While soup still remains an important part of Campbell’s business, it has become a smaller portion of its overall sales. In the past year, snack sales for Campbell’s have seen a 13% growth, while soup sales have only grown by 3%.
Legacy food companies like Campbell are pivoting towards the snack market, which is valued at more than $200 billion according to market research firm Circana. With nearly half of Americans reporting that they eat at least three snacks a day, the snack market is a lucrative and growing industry. This shift is evident in the recent acquisition of Kellogg by Mars, known for brands like M&M’s, which purchased Kellanova, the owner of Cheez-Its and Pringles, in a deal worth almost $29 billion. Kellanova emphasized the importance of the snacking category, stating that it is a large, attractive, and durable market.
The decision to rebrand and focus more on snacks is a strategic move by Campbell to cater to the changing preferences of consumers and capitalize on the growing snack market. By acquiring popular snack brands and expanding their portfolio beyond soups, Campbell aims to ensure continued growth and success in the evolving food industry. This transformation reflects the broader trend among legacy food companies towards diversifying their product offerings to meet consumer demand for convenient and on-the-go snack options. As snacking continues to grow in importance for consumers, companies like Campbell are adapting to stay competitive and relevant in the market.
