Corporate Profiles - 2024 - 54

COMPANY overview
Campbell Soup Co.
Company grows through Sovos Brands
acquisition, is reforming its supply chain
T
he Campbell Soup Co. completed the acquisition
of Sovos Brands, including the Rao's
brand, in 2024. Other moves involved divestures,
focusing on brand scale and breadth, reforming
the supply chain, and innovation.
Campbell Soup Co., Camden, NJ, closed the acquisition
of Sovos, Louisville, Ky., for about $2.7
billion in March.
" This important milestone in Campbell's history
adds several market-leading and scaled premium
brands to our company, " said Mark A. Clouse, president
and chief executive officer of Campbell Soup.
" It accelerates Campbell's successful strategy and
provides a substantial runway for sustained profitable
growth. An enhanced Meals & Beverages
division paired with our differentiated Snacks division
creates an advantaged portfolio that makes
voted on at the company's annual meeting in November.
Clouse said the change better reflects " the
full breadth of the company's portfolio. "
Campbell Soup Co. in the fiscal year ended July
28 had net earnings of $567 million, down 34%
from $858 million in the previous fiscal year. Within
the Snacks business, fiscal-year sales slipped 2%
to $4.38 billion. Campbell Soup planned to invest
in promotions in the current year's first quarter to
boost sales of brands such as Snyder's of Hanover
and Snack Factory, Clouse said. Sales within the
Meals & Beverages unit, boosted by Sovos Brands,
rose 7% to $5.26 billion.
Campbell Soup in fiscal 2025 expects sales to
increase 9% to 11%. Long term the Sovos Brands
portfolio is expected to contribute sales growth in a
range of mid-single-digit percentages.
Following the Sovos' acquisition, Campbell Soup
sold Pop Secret to Our Home in August. Pop Secret
had sales of approximately $120 million in fiscal
2024, according to Campbell Soup.
Investing approximately $230 million over the
next three years will enable Campbell Soup to
transform its supply chain. Plans include upgrading
manufacturing sites,
Campbell Soup Co.
net earnings
(fiscal years ended in July)
in millions
2024
2023
2022
$567
$858
$757
Source: Campbell Soup Co.
Campbell Soup Co.
net sales
(fiscal years ended in July)
in millions
2024
leveraging its network
Chief executive officer -
Mark A. Clouse
Campbell one of the most dependable and growthoriented
large capitalization value names in food. "
The deal created Campbell's business unit called
Distinctive Brands within its Meals & Beverages division.
The unit features Sovos brands' Pacific Foods,
Rao's, Michael Angelo's and noosa. Risa Cretella,
previously chief sales officer at Sovos Brands and
now senior vice president and general manager for
Campbell Soup, will lead Distinctive Brands.
The changing face of Campbell's portfolio also
has prompted a potential name change. The company
said its management team has proposed a
name change to The Campbell's Co., which will be
54 \ October 2024
of co-manufacturing partners, closing inefficient
plants and shifting production to more modern and
effective facilities. Campell will close its Tualatin,
Ore., facility, which makes Pacific's organic soup,
broth and plant-based beverages, in phases by July
2026. Production of Kettle potato chips at the Jeffersonville,
Ind., facility is transferring to plants in
Charlotte, NC, and Hanover, Pa. The Jeffersonville
plant now will manufacture Late July tortilla chips
and continue producing regional snack brands.
Campbell Soup's aseptic soup production will
see a $150 million investment in Maxton, NC. Investing
$8 million will expand capacity for tortilla
chip production in Franklin, Wis. Soup production
is halting at Campbell Soup's Paris, Texas, plant,
which will be converted into a sauce production facility.
Soup production will be shifted to other sites
in the company's network.
Additionally, the company is updating its directstore
delivery program to bring its Snacks business
closer to a " single snacks network, " Clouse said. CP
2023
2022
$9,636
$9,357
$8,562
Source: Campbell Soup Co.
Campbell Soup Co.
share price
Source: New York Stock Exchange
$33
$38
$43
$48
$53
Sept. Nov.
2023
CAMPBELL SOUP CO.
Jan.
2024
Sept. 4, 2024 = $51.64
HIGH =
Sept. 4, 2024 = $51.64
LOW =
Oct. 12, 2023 = $37.13
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July
Sept.
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Corporate Profiles - 2024

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