Price Hikes Again Prop Up Campbell Soup

Dec. 9, 2022

Higher product prices offset a slight drop in volume.

In what is becoming a familiar pattern, higher product prices carried Campbell Soup Co. to a successful first fiscal quarter despite a slight decline in volume sales.

Campbell’s net sales for the quarter ending Oct. 30 were $2.58 billion, a 15% increase over the same period last year. Adjusted earnings were $449 million, also a 15% increase.

As it has previously, Campbell’s success was due in large part to increasing the prices of its products, although managers also credited "brand strength and continued supply recovery." Overall product volume was down 1% for meals and beverages and 2% for snacks in the quarter. It also benefited from $10 million in savings in the quarter from a “multi-year cost savings program,” according to a company release.

Sales increased by 15% for both segments. Operating earnings for meals and beverages were $331 million, an 18% year-over-year increase, and $153 million for snacks, up 20%.

“Our strong first-quarter results reflect our continued success in driving the relevance of our brands and improving our execution across our supply chain,” CEO Mark Clouse said in a statement.

About the Author

Pan Demetrakakes | Senior Editor

Pan has written about the food and beverage industry for more than 25 years. His areas of coverage have included formulations, processing, packaging, marketing and retailing. Pan worked for Food Processing Magazine for six years in the 1990s, where he was operations editor (his current role), touring dozens of food plants of every description. He has also worked for Packaging and Food & Beverage Packaging magazines, the latter as chief editor, during which he won three ASBPE awards. He is a graduate of Stanford University with a BA in communications.