Dive Brief:
- Campbell Soup said its net income jumped 71% as sales of broth soared during the harsh winter weather.
- The earnings report is perhaps more positive looking than truly positive. If broth is removed from the numbers, the sales of soups to consumers actually fell 1%.
- Campbell also warned of possible trouble ahead as California's drought threatens to increase the company's costs.
Dive Insight:
We don't know how sustainable Campbell's good news may be, but we'll take good news wherever we can find it for the soupmaker. Few foods seem to have been hit as hard as canned soup by the change in Americans' eating habits. But if — as trend followers and number crunchers would both suggest — Americans are rediscovering their love of cooking, then Campbell's broths could continue to do very, very well.