Campbell Soup Co. announced that it plans to focus on its core snacks and soup business in North America and sell its international business in order to pay down debt. Selling its international and fresh refrigerated-foods units leaves open the possibility of putting the whole company up for sale. The company said Thursday that it’s working urgently to complete all the moves by next July.
In May, amidst a mix of changing food trends and potentially costly tariffs on aluminum and steel, Campbell Soup Co. announced plans for reorganization along with the retirement of then CEO Denise Morrison.
The 149-year-old company, which revolutionized the home-cooking industry with easy-to-prepare soups and low-cost production techniques, has long been struggling with declining soup and juice sales in a market crowded with competitors. At the same time, many families are seeking foods that are healthier and less processed. The company has also struggled to attract younger generations to its soups and Pepperidge Farm cookies.
At the same time, Campbell’s foray into fresh foods has lost momentum while its debt and costs have only increased. Campbell said it would use the proceeds of the unit sales to reduce its debt and increase its cost savings target by $150 million to $945 million by the end of fiscal 2022.
By: Maytinee Kramer
