Soup brand gets deep pockets
Steve’s breakdown: Pacific Foods of Oregon was just slurped up by Campbell’s. And considering how poorly Campbell’s has been doing with their other healthy lines, they are going to put a bowl full of cash behind Pacific Foods.
CAMDEN, NJ: Campbell Soup Co (CPB.N) said on Thursday it would buy Pacific Foods, which makes organic soups and broths, for $700 million in cash to boost its health food options amid changing consumer tastes.
The world’s largest soupmaker has been reporting weak sales as demand for packaged foods in the United States has taken a hit as consumers increasingly prefer healthier foods, pushing companies to invest in organic and fresh-food businesses.
Campbell, which also sells Pepperidge Farm snacks and Prego pasta sauce, created its own fresh-food unit in 2015 to sell carrots, carrot ingredients, refrigerated beverages and salad dressings, but the business has been struggling.