Dive Brief:

• The world's largest soup maker said net income plummeted 30 percent as demand for its products fell and costs rose.
• Sales fell 2% in the first quarter, while U.S. soup sales dropped 6%.
• The numbers were well short of analysts expectations. Campbell's also lowered its forecasts for the rest of the fiscal year. Share prices tumbled 7% in pre-market trading as a result.

Dive Insight:

Ouch! Campbell's earnings report is painful to read. There seems to be very little good news and loads of bad news. But we're not worried too much. Here's why: our sense is that Campbell needs to find a way to adjust to new tastes in both food and packaging. Soup in the U.S. tends to be too much of a bland, side-dish sort of affair. And nothing says old-fashioned like a can. But Campbell's is making changes in how it makes and packages food. And we expect things will look better for Campbell in the not-too-distant future.