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Campbell Soup’s 14 per cent income fall sparks marketing overhaul

Campbell Soup Co has recorded a second quarter net income fall of 14 per cent.

The company did spend more on marketing its soup business, and the decline in profits was still better than what analysts had expected.

Campbell’s net income for the three months until January fell by $205 million, equating to 64 cents per share, compared with $239 million (72 cents per share) the previous year.

The New Jersey-based company has suffered declining soup sales for the past several years, with shoppers switching to other brands or not buying soup at all, and cutbacks in discounting impacting sales volume.

It is currently working on overhauling its marketing and introducing new lines of premium quality, more expensive soups, snacks and beverages.

"We are executing a strategic turnaround in an environment of weak volume and high inflation across the food industry," said chief executive Denise Morrison in a statement.

"Our first half has been impacted by headwinds in our beverages and Australian businesses, but we continue to make progress against our key growth strategies."

"We expect improved sales in the second half, as we continue to shift our emphasis to brand building efforts that will drive consumer usage," Morrison said.

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