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Campbell Soup to Sell Noosa Yogurt Business to Lakeview Farms
Dive Brief:
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Campbell Soup has announced the sale of its Noosa yogurt business to Lakeview Farms, a manufacturer known for fresh dips, desserts, and specialty products. The terms of the transaction have not been disclosed.
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Noosa reported net sales of $177 million in the last 12 months ending October 2024, according to Campbell. The deal is expected to be finalized in the first quarter of the upcoming year.
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Campbell acquired Noosa as part of its $2.7 billion Sovos Brands purchase in March. Following the acquisition, Campbell announced plans to explore strategic alternatives for the brand due to yogurt not being a core focus of its business.
Dive Insight:
Within the Sovos deal, Campbell Soup’s standout asset was the Rao’s pasta sauce brand, nearing $1 billion in annual sales. This fast-growing Italian brand complemented Campbell’s existing lineup of shelf-stable products like V8, Goldfish, Prego, and Pepperidge Farm.
While Campbell had no intentions of expanding into the yogurt market, the sale of Noosa was inevitable. However, Campbell emphasized that Noosa was performing well and would only be divested if the price was deemed fair.
Mick Beekhuizen, president of Campbell’s Meals & Beverages, stated, “Noosa is a well-run business with a great team. This sale allows us to focus on our portfolio of leading brands.”
The Sovos acquisition also introduced Michael Angelo’s frozen meals to Campbell’s lineup, emphasizing the company’s commitment to expanding its presence in the meals and premium offerings sector.
In recent years, Campbell has divested non-core brands to focus on growth and streamline its portfolio. Previous divestments include Pop Secret popcorn and Emerald nuts.
On the other hand, Lakeview Farms, the buyer of Noosa, has a strong presence in fresh foods with offerings like refrigerated desserts, dips, salsa, hummus, and specialty products. The acquisition of Noosa expands Lakeview’s portfolio into the lucrative $8 billion yogurt category.
The deal includes the Noosa manufacturing facility in Bellvue, Colorado, with approximately 240 employees transitioning to Lakeview Farms.