Campbell Soup Co’s Q2 “validates” company’s snack strategy with strong share, sales gains

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With inflationary pressures still packing a punch to consumers’ wallets, shoppers have sought out value but maintained their snack purchase habits – which has boosted Campell’s bottom line.

Net sales advanced 12% on an adjusted basis to $2.49 billion in the quarter ending Jan. 29., largely on the strength of the Camden, NJ-based firm’s snack category.

CEO Mark Clouse cited snacks as the “star” of Campbell’s portfolio, with segment sales rising 15% in Q2 to $1.08 billion.

“This performance in snacks marks a significant step in our journey, as we continue to emerge, as a truly differentiated and best-in-class snacks portfolio,” the exec said during a March 8 earnings call with analysts.

Further, the second quarter represents “a pivotal moment in the validation of the strategy on snacking for us as a company.”

The firm highlighted its power brands of Goldfish crackers and Pepperidge Farm cookies as standouts, noting that their higher product prices and volume contributed to the increased sales growth.

Approaching $1 billion in annual sales, Goldfish had success in the quarter with its limited time offer strategy, “with consumers twice as likely to purchase LTOs alongside other Goldfish items,” Campbell’s said.

Clouse explained that margins improved for snacks at a time when the firm increased its marketing and selling spend by 19%.

Meanwhile, every snack brand saw dollar, volume and unit growth in the quarter, “showing the power of our portfolio and the relevance of consumer snacking behavior even in this current economic environment,” he said.

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