Dive Brief:
- The biggest worry for iconic food companies today is how to be agile and fast enough to make decisions and try new things in an ever-changing environment of evolving consumer preferences and industry pressures to operate differently, said Campbell CEO Denise Morrison in an article for Fortune.
- "Campbell identified four seismic shifts that are accelerating: demographic changes in the American family; an increase awareness in health and wellness; the ever-evolving digital landscape and a global economic realignment with a shrinking middle class in developed markets and a burgeoning middle class in emerging markets. These shifts are having a profound impact on how consumers engage with food," said Morrison.
- Morrison said that being an iconic food company can be a curse if it maintains the status quo in this type of environment or a blessing if companies "leverage the change coupled with capability to seize new opportunities."
Dive Insight:
To Morrison, one of the most important moves by Campbell was to reiterate the company's purpose: "Real food that matters for life’s moments." Campbell has recently done so through a marketing campaign that highlights "real" family interactions with branded Campbell products, such as "Star Wars" soups and soups in K-Cups.
This campaign also demonstrates the company's increased focus on digital media and advertising, which can be a factor in evolving with the changing times and reaching consumers where they congegate.
Campbell has made strategic acquisitions, including Bolthouse Farms and Garden Fresh, as well as closed several plants as part of its cost-cutting strategy.
As more of these larger, iconic companies see their sales and market share slipping, they're looking to smaller companies and startups for inspiration and potential acquisitions, including Campbell.
"Evolving our culture to operate and think differently is no small task," said Morrison. "We are challenging our employees to be the best of both small and big companies — they should operate with the soul and spirit of a startup, while leveraging the scale, resources and capabilities of Campbell — with the goal of ultimately becoming the biggest small company."