The 155-year-old Campbell Soup Company, the first to bring canned soups to market, wants to drop the “Soup” part of its name and go by just the Campbell company. Shareholders can vote on the proposed name change in November at Campbell's annual meeting.
The request reflects Campbell's broader strategy to expand beyond soups and into higher-growth categories such as snacks, which have been promised. Snack sale increased 13% for the company last year while soups grew by 3%. Almost 48% of Campbell's net sales came from small snacks in fiscal 2023. Meanwhile, Campbell's Goldfish brand achieved annual net sales of $1 billion in March, a feat accomplished by only one other product from the company: its iconic red-and-white-labeled soup.
Campbell CEO Mark Clouse said in one investor event on Tuesday that the “inconspicuous but significant” name change more accurately reflects “the full breadth of the company's portfolio.” Earlier this year, Campbell bought it Sovos brandsthe company behind Rao's sauces, Noosa's Yoghurt and Michael Angelo's frozen food brands, for $2.7 billion.
The company has also made other purchases, such as a $4.87 billion deal for the food company Snyder's-Lance in 2017.
Campbell's Tomato Soup. Photo Credit: Richard Levine/Corbis via Getty Images
Campbell's Drivers said on Tuesday that they see steady sales in soups, 3% to 4% annual growth in snacks and 1% to 2% in meals and beverages.
Although the company does not assume annual growth in soup, it continues to innovate and invest in this category. Campbell recently introduced new spicy soup flavors, including Ghost Pepper Chicken Noodle Soup, to appeal to younger shoppers. Older populations typically buy more soup, so sales in that category could be boosted by groups like older millennials, the company said.
Campbell's fourth quarter earnings for the three months ending July 18, 2024, show total net sales increased from the previous quarter, from $2.068 billion to $2.293 billion.
“For the past five years, we have been on a transformational journey to redefine our company,” Clouse DECLARING.