- Campbell CEO Denise Morrison announced a management shake-up for the Campbell Fresh division after a disappointing earnings report last week.
- The company removed Scott LaPorta, the president and general manager of Bolthouse Farms, the division's largest brand.
- "Additionally, we’ve created a new structure to foster more agility and collaboration across the division," Morrison said in a statement.
The Campbell Fresh segment is critical to the company's growth plans. In its latest earnings report, Campbell's overall revenue fell 0.35% to $1.69 billion for the quarter, while full-year as reported and organic sales decreased 1%. That report reflects the performance of competitors, though Campbell's revenue decline wasn't as severe as others, such as General Mills or Kraft Heinz.
The fresh segment's sales dipped 5% in the quarter, which Morrison called an "unacceptable" performance. That included a recall of Bolthouse Farms beverages in June. New management could revitalize the category, but Campbell may be struggling with a common issue processed food manufacturers will face as they attempt to diversify their portfolios with more fresh food.
Consumers demand more fresh products, but they may not trust legacy brands in the same way they would startups. This doesn't mean major manufacturers can't embrace the fresh trend, but their strategy and execution will have to differ to overcome common perceptions of processed food companies.