The Campbell’s Company has reported that consumers are cooking meals at home at the highest level since early 2020, when the COVID-19 pandemic forced many to avoid dining out. This shift in consumer behavior is driven by a desire to stretch tighter food budgets, leading to increased sales of Campbell’s condensed cooking soups, broths, and Italian sauces.
While the meals and beverages segment of Campbell’s has seen a 15% surge in sales, the snacks division, particularly chips and crackers, has faced pressure due to inflationary factors. As consumers prioritize home-cooked meals over snacking, sales in the snacks category have declined.
The company’s acquisition of Sovos Brands, owner of Rao’s, in 2024 has contributed to the strong performance of Campbell’s soup businesses. Additionally, Campbell’s CEO Mick Beekhuizen noted that the company’s wet offerings have benefited from younger individuals cooking more at home.
Despite the challenges in the snacks segment, Campbell’s remains confident in the strength of its snacks portfolio and is taking steps to regain momentum. The company is closely monitoring the impact of tariffs on its business, with potential trade headwinds expected to affect fiscal-year earnings.
In response to potential tariff impacts, Campbell’s is actively working to mitigate risks through inventory management, alternative sourcing, and pricing adjustments where necessary. The company remains committed to providing value, quality, and convenience to consumers across its product range.
