Campbell Soup Tempers Outlook Due to Private Label Competition

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

September 8, 2010

Camden, N.J., -based Campbell Soup Co. said it expects earnings to slow over the next 12 months due to lower priced private label soup competition and companies that make other simple meals such as frozen food entrees.

Although the company has implemented new promotional spending and introduced new products, little headway has been made.

"There is a palpable change in consumer buying behavior that is unlike anything we have experienced certainly for a few decades," said Campbell CEO Doug Conant. "Mom is not sending the teenagers out to go pick up the groceries now. She's looking at where the best deal is, and sort of surgically buying."

Fourth-quarter profit increased 64 percent to $113 million, while revenue fell less than 1 percent, to $1.52 billion, the company said in a statement.

Meanwhile, soup sales declined 5 percent in the United States in the last quarter after rising 2 percent in the previous period; ready-to-serve and condensed soups each declined 7 percent. Beverage sales, a bright spot, rose 12 percent.

Campbell said last quarter’s marketing and selling expenses increased 6 percent, to $221 million, driven in part by increased advertising.

Read These Related Articles:

• Store Brands Decisions Launches to Serve the Information Needs of the Store Brands Market
• Meijer Launches Specialty Store Brand Foods
• Store Brands Gain Share in Significant Categories
• TreeHouse Agrees to Acquire Sturm Foods
• Debunking the Hispanic Store Brands Myth

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases