Americans have shifted towards fresh foods, a move that is likely to affect Campbell’s tremendously. This week, the company claimed that their quarterly profit had dropped by thirty percent since the sales of United States V8 and soups had declined. The results were also hurt by the recently acquired Plum Organics Products. After the results were announced, Campbell Soup’s shares dropped by six percent to 39.28 dollars. Campbell, a Camden-based company has been attempting to redesign its image to become a shelf-stable canned food purveyor, as well as other packaged food products. The push has emerged when people are increasingly opting for fresh foods. They are thus moving towards the sphere of grocery stores that sell meats, produce, as well as dairy.
A move made by Campbell’s in an effort to connect with the young population is the introduction of soups packaged in new, bright plastic containers, as well as dinner sources packaged in black packages. There is still stiff competition faced by the company, especially from the ever-growing ready-made food sections in not only supermarkets, but also other food outlets. Chief Financial Officer, Craig Owens, did not give the specific percentage of the soups that come from its new products in a call with analysts. He said that the percentage was still significant or rather small. Generally, in the last quarter soup sales in the United States have dropped by six percent following the adjustment of inventories by retailers. The sales of beverages have also dropped by eight percent. The sales for global sales of snack division and baking division rose by six percent. Campbell asserted that it has plans of launching cheese and Goldfish branded macaroni in this quarter.
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