Campbell Soup Co. is trying to reformulate and revitalize its core line of canned soups while demand is whipsawed by the pandemic.
Campbell reported a 21% decrease in soup sales for its recently concluded fourth quarter compared with last year, when sales were pumped up by increased at-home consumption due to the pandemic. The meals and beverages segment, which includes soups, was down 16% in net sales and 30% in earnings for the fourth quarter compared with last year.
For the full fiscal year, Campbell’s sales were $8.5 billion, a 2% drop from last year. Adjusted earnings were $1.4 billion, a 3% decrease.
Campbell was one of the biggest beneficiaries among major food companies of altered buying patterns during the pandemic, as consumers stocked up on canned soups and comfort foods like snacks. Campbell’s soup line has been making progress, with fourth-quarter sales up 16% from the same period in 2019, before the pandemic.
Campbell is trying to hang on to that momentum by revitalizing its soup portfolio with revamped packaging and new flavors like Chunky Spicy Chicken Noodle. In addition, the resurgence of COVID via the Delta variant of the coronavirus brings the potential for a return to pantry-stocking, CEO Mark Clouse told investors.
