Campbell Soup Co. to drop ‘soup’ from its name to better reflect diversified portfolio, outlines new mission and financial strategy that leans on snacks

“It is time for our next chapter: A chapter where our strength and team, transformed portfolio and rebuilt capabilities are positioned to win and win consistently. What better way to mark this next chapter than with a subtle but meaningful change in the name of our company” from The Campbell Soup Co. to The Campbell’s Co., Clouse told those gathered at the company’s investor day Sept. 10.

“We will always love soup and we will never take our eye off this critical business, but today, we are so much more than soup. So, at this year’s annual meeting of stockholders, we will be asking our shareholders to approve changing the name of the company to The Campbell’s Company,” he said.

He explained the proposed name change “sends a strong signal for the next chapter of the company’s future” that will grow thanks to a diverse portfolio, including 16 leadership brands, which include Goldfish crackers, Kettle, Cape Code and Late July chips, Pepperidge Farm baked goods, Snyder’s of Hanover pretzels, Rao’s sauces and frozen meals and more.

“In the past, you have heard us refer to our eight ‘power brands’ in snacks. The reality is we also have a set of eight power brands in our meals and beverage division that are also leaders in their categories. … All of these 16 brands are competitively differentiated, and the majority hold No. 1 or No. 2 market share in their respective categories and segments,” making for a “compelling” overall food portfolio, Clouse said.

These brands accounted for 84% of net sales and 95% of segment operating earnings in fiscal year 2024, according to the company. Within soup, the company reported a decrease in ready-to-serve and condensed offerings in its fourth quarter. This partially offset an increase in broth that buoyed total US soup sales, which increased 2% in the period.

As the company expands its focus across a more diverse portfolio, Clouse was quick to emphasize the business’ ongoing commitment to soup, which assumes a smaller portion of the company’s recently diversified portfolio.

“We remain confident that soup can and will continue to be a positive contributor to our growth story. However, given the strength and mix of our portfolio today, our long-term algorithm simply requires soup to remain stable,” he explained. “I hope … you will agree that the strength of our brands, like Chunky, Swanson, Pacific and Rao’s, along with our namesake Campbell’s, can be a meaningful catalyst for upside to our plans.”

Higher expectations reflected in growth expectations​

Optimistic about the company’s diverse portfolio, leadership set new growth targets for organic net sales between 2% and 3%, adjusted earnings growth of 7% to 9%, and adjusted earnings before interest and taxes growth of 4% to 6%.

This is up from the long-term growth set by the company in 2021, when it projected organic sales of 2%, adjusted earnings of 6% to 8% and adjusted Ebit of 4% to 6%.

Looking forward, the company will lean on snacks for most of its growth and expects its Goldfish brand to lead the company by 2027.

The company’s soup business could see a lift if use of GLP-1 weight loss drugs continues to grow as they often are easier to digest and nutrient dense. Likewise, the business could grow as the population ages as older consumers gravitate more towards soup, Clouse said.

New ‘simple, aspirational and measurable’ mission​

To accompany the company’s intended new name, the business also will adopt a new mission: Set the standard.

Clouse described the mission as “simple, aspirational and measurable,” as well as a “a notable shift from turnaround or simply marginal improvement.”

He explained: “It requires us to measure ourselves against not small, incremental improvements year to year, but rather against those companies that are best in class in our industry, striving to reach those standards and set the standard ourselves for execution, performance and consistency.”

The new mission is built on five pillars: top team, best portfolio, winning execution, top tier performance and lasting impact.