- Campbell Soup Co. is now another center-of-store products manufacturer to implement a cost-cutting program due to lagging sales in that area of its portfolio. The decreased sales are mainly due to consumers' concerns about "effects of food on their health and well-being and mounting demands for transparency from food companies," said Campbell CEO Denise Morrison.
- The initiative includes a target of $200 million carried out over three years, which will include cutting excess management and pursuing a "zero-based budgeting" strategy, according to Campbell, which means all expenses are to be accounted for in each department.
- The announcement follows a recent shakeup at Campbell that resulted in three divisions, meant to simplify organization and operations. Campbell is also turning toward focusing on its fresh, perimeter food products.
Campbell isn't the only major food manufacturer to report new cost-cutting measures. Coca-Cola Co. responded to sagging soda sales by announcing in October it would cut about $3 billion in costs per year through 2019. In September, General Mills said it would cut about $100 million in operating costs after disappointing earnings, though the company didn't specify where those cuts might come from. That followed another announcement in an earlier quarter to cut around $40 million from its North American manufacturing and distribution operations due to decreasing sales. In short, Campbell isn't alone here.