Campbell (Photo : Reuters/Gary Cameron)
Despite having spent billions on acquisitions and introductions of new products in the market for health-conscious individuals, Campbell is still struggling with their sales. For the last quarter, the giant food company has reportedly dropped two percent in net sales, according to Fortune.
As Millennials are shunning away processed products from big companies in exchange for more healthier and tastier food options, Campbell faces a challenge in keeping up with the mainstream. But they are not alone. Other well-established food and beverage brands like PepsiCo and McDonald's are also having problems in terms of sales growth in established markets, such as the United States.
In an earlier report by Star Tribune, Millennials do not seem to have loyalty to established brands any longer, and are now more conscious about health products, putting importance on good food and nutrition.
With pressure pushing on Campbell, Denise Morrison, the company's chief executive, spoke to analysts that the increasing skepticism of food makers has difinitely dented well-established brands.
"This is a difficult time across the food industry," stated Morrison. Even though Campbell has performed so many efforts for several years to change and improve its portfolio, "it has not been enough."
By reshaping the portfolio, Morrison meant taking the necessary steps to address the challenges. The company has acquired brands like Bolthouse Farms and Plum PBC, hoping to achieve better growth.
They have also disclosed a plan to introduce new products in the market this year, which will include veggie snacks, organic soups, and protein shakes.
In addition, they plan to debut much lesser "new products" and put more emphasis on their successes to reduce complexity in their supply chain.
"What we've realized is if we can cluster our innovation into fewer, bigger platforms that have scale in the marketplace," Morrison said. She also added that this is a much better program that they are prepared to run.
With the new products and acquisitions, Campbell is pushing to obtain 13 to 15 percent on sales overtime.
