Campbell Soup CEO Mark Clouse mentioned the possibility of splitting the company’s snacks business from its meals and beverages unit in the future, but emphasized that any potential restructuring is not imminent. Speaking at the company’s investor day in New York City, Clouse stated, “I’ve always been consistent in prioritizing value creation for our shareholders. If there comes a time where we see an opportunity or merit in discussing a split, we will certainly explore it. However, it is not something that will happen today.”
While Campbell Soup is best known for its iconic soups, the company has been diversifying its portfolio by focusing on brands like Goldfish and Pepperidge Farm, in addition to acquiring snacks maker Snyder’s-Lance and Rao’s sauce maker Sovos Brands. Clouse expressed confidence in the uniqueness and breadth of the company’s 155-year-old brands and looks forward to seeing the potential of the portfolio unfold.
The success of recent high-profile spinoffs in the food industry has caught the attention of executives. Companies like Mondelēz International, known for Oreo and Ritz, and Kellogg’s, which recently divided its operations, have seen positive outcomes from their spinoff strategies.
Analysts believe that a potential separation at Campbell Soup could unlock a higher valuation for its snacking brands, which accounted for nearly half of the company’s net sales in the 2024 fiscal year. With an increased organic sales growth outlook and a focus on leadership brands like Goldfish, Campbell Soup is positioning itself for future growth.
As part of its strategic evolution, Campbell Soup recently announced plans to rebrand by dropping “soup” from its name. Shareholders will vote on the proposed name change to The Campbell’s Company at the upcoming annual meeting in November.