Correction: An earlier version of this story should have referenced overall organic food growth at nearly 12% over the past three years.
- Campbell Soup Co. is revamping its marketing and ingredients strategies to meet consumer demands for healthier foods and more transparency from food companies as well as to combat slowing sales of its processed foods portfolio.
- Campbell will boost the digital spending portion of its advertising budget from about 20% to 40% in 2016 and cut back TV spending to 50%. Campbell is following the trend of other major food companies refocusing on digital advertising, but its allocation of spending will be at the higher end as compared to other food and beverage companies.
- Campbell has also set a goal to simplify its recipes and remove artificial ingredients by the end of 2018, including removing high fructose corn syrup from Pepperidge Farm fresh breads by 2017. Campbell is also expanding its organic portfolio. Organic food sales overall have grown by nearly 12% in the past three years.
In addition to new ways to reach customers both in terms of products and advertising, another core focus for Campbell will be ensuring transparency of the company while making these changes. The company will offer consumers an inside look as to how Campbell products are made via its website, www.whatsinmyfood.com.
"We believe this candid discussion with consumers will lead to a new dialogue, and new relationships between Campbell and consumers," said Campbell CEO Denise Morrison. She also said, "We are moving away from brand marketing to brand experience, where we earn consumer's trust instead of buying it."
These announcements come along with Campbell's adjusted outlook for the fiscal year.