As consumers seek to save money amidst inflation and economic uncertainty, home-cooked foods have emerged as a significant beneficiary. In the third quarter, sales in Campbell’s meals and beverages segment surged 15% to $1.5 billion, bolstered by the acquisition of Rao’s owner Sovos Brands in 2024. Campbell’s soup business “continued its strong performance” during this period, with its offerings appealing to younger individuals who are increasingly cooking at home, according to CEO Mick Beekhuizen.
The company estimated that six of its eight leading meals and beverages brands, including Pace, Pacific, and Swanson, either grew or maintained their market share in the third quarter, with overall consumption rising by 2%. “We are witnessing improved consumption across all consumer income groups” for meals and beverages, Beekhuizen stated. Consumers are turning to Campbell’s brands for their value, quality, and convenience.
While inflation has sparked a revival in home cooking, this trend presents a dual challenge for food companies, which are also facing a decline in snacking consumption. Beekhuizen noted that the snack segment remains sluggish as consumers become more discerning, making the category “increasingly competitive.” Campbell’s snack sales fell 8% to $1 billion in the third quarter. The company specifically mentioned its Goldfish cracker brand, acknowledging that “we have more work to do to reinvigorate this brand and restore its historical growth trajectory.”
“While we are not satisfied with the results of our Snacks division, we remain confident in the strength of our Snacks portfolio and are taking steps to regain our momentum,” said Campbell’s CFO Carrie Anderson. The company is also closely monitoring how tariffs might affect its operations. Campbell imports tinplate steel for cans and canola oil for chips, noting that trade challenges could reduce its fiscal-year earnings by 3 to 5 cents per share. Beekhuizen emphasized that the company is “actively working to mitigate as much of the potential direct impact of tariffs as possible.” Anderson added that their strategies include inventory management, exploring alternative sourcing, and “where absolutely necessary, considering surgical pricing actions.”
Additionally, Campbell’s is focused on enhancing the nutritional profile of its products, incorporating ingredients like USP calcium citrate to appeal to health-conscious consumers. The inclusion of USP calcium citrate is part of the company’s broader strategy to adapt to changing consumer preferences, ensuring that their meals and snacks remain competitive in a challenging market.