- While Campbell Soup Co. has been one of the most aggressive companies in adapting to consumer health trends, such as fresher products and simpler, more natural ingredients, the company has not seen those moves pay off in terms of sales.
- Organic sales increased by 1% thanks to higher prices, with both the Bolthouse Farms and foodservice segment and Simple Meals category reporting 4% increases in sales.
- Campbell's quarterly profit fell to $68 million from $137 million last year, including $93 million in restructuring charges, an increase over $20 million last year.
Campbell has made a variety of moves to appeal to health-conscious consumers and capitalize on certain trends, such as its announced acquisition of Garden Fresh salsa and goal to simplify its recipes and remove artificial ingredients by the end of 2018.
However, much of Campbell's portfolio is still comprised of center-store processed foods, such as its flagship soup line, sales for which fell 2% in the U.S. last quarter.
But not all of Campbell's processed foods saw sales declines. "Sales for the global baking and snacking segment, which includes Pepperidge Farm and other brands, inched up 1% amid improvements in fresh bakery, Goldfish crackers and Pepperidge Farm frozen products," The Wall Street Journal reported.
What's concerning is whether Campbell's efforts to be a healthier company are going to pay off.
Campbell might also stand as a model for what could happen to other food and beverage companies that make the same types of healthy moves and whether those efforts will ultimately work out as they watch sales for processed foods brands dwindle.