- Campbell has enacted many changes in the last year regarding health benefits of the company's portfolio to adapt to consumer trends, but whether those moves have paid off in terms of higher sales remains to be seen.
- However, despite those efforts, "Analysts expect Campbell on Thursday to report that total sales fell 2% to $8.1 billion in fiscal 2015, according to Thomson Reuters," The Wall Street Journal reported.
- Campbell has made some varieties of its classic products organic, reduced artificial ingredients, and vowed to remove high-fructose corn syrup from more of its products. It has also acquired more refrigerated brands , such as Bolthouse Farms juices and Garden Fresh Gourmet salsa, which are benefiting from consumer shifts toward healthier foods.
One of Campbell's largest problems is that many of its flagship products are processed brands, and even though the company is using healthier ingredients, that doesn't change the fact that consumers' purchasing decisions are trending toward fresher, non-processed foods. Campbell, however, has not given up on its traditional brands, saying that many of those brands are still staples in North American homes, according to The Wall Street Journal.
In response to lagging sales, Campbell, like other processed foods companies, has instituted cost-cutting policies that are helping Campbell maintain its profit margins. The company initially announced plans for $200 million in savings over three years back in February, but last month, Campbell revealed a revised that target to $250 million, including $75 million in fiscal 2015.
However, in that same July announcement, the company "lowered expectations for long-term sales growth to between 1% and 3%, excluding acquisitions and divestitures, from its previous target of 3% to 4%," The Wall Street Journal reported.