Dive Brief:
- Campbell Soup warned investors that sales growth would likely fall below its targets, as the company continues to struggle with declining consumer interest in canned soups.
- Chief Executive Officer Denise Morrison said his company, which also owns brands such as V8, Bolthouse Farms, and Pepperidge Farms, will debut 200 new products over the next 12 months in an effort to generate $10 billion in annual revenue.
- Among the more interesting new products: The company's first organic, ready-to-eat Campbell's brand soups -- packaged in cartons, not cans.
Dive Insight:
Not many companies face as many challenges as Campbell does. It's flagship products are out-of-fashion and it's already cut as much in costs as it likely can afford to do. In a situation like that, there are really only two options.
One option would be to turn to the bankers and either sell the company, dump some units, or acquire something.
The second option, which Campbell is pursuing, is to revamp the business itself -- moving into new lines and walking away from what doesn't work anymore. The first test of that strategy is on Wall Street, which seemed slightly pleased with the news. Shares rose less than a half a percentage point after its announcement.