Campbell Soup acquires Pacific Foods in an attempt to ride Foods with Integrity theme
The biggest transaction of 2017 by all accounts was Amazon coming in and sweeping up Whole Foods, and in one move forever transforming the natural / organic market space. But that was just but one move. Amidst a flurry of activity in the space in 2017, yet another acquisition of a company that falls within our “Foods with Integrity” investment theme was announced this week:
Campbell Soup Company, seeking to reverse a 12th straight quarterly sales drop, this week closed a $700 million purchase of Oregon-based Pacific Foods, a maker of organic broths and soups. This continues a growing trend of Big Food giants buying what are considered “authentic” brands to help stoke their own stale growth. Pacific Foods will be part of the Camden, New Jersey, company’s Americas Simple Meals and Beverages division, Campbell said late Tuesday. That’s its largest division, also housing brands such as Campbell’s own namesake label, V8 juice and Plum Organics baby food, also an acquired brand.
Capitalizing on the authenticity of brands like Pacific Foods is crucial for Big Food companies like Campbell at a time when consumers’ demands for what they perceive as fresher and healthier foods have often translated to distrust in major brands. It also has led to startups and other smaller brands eating into the market share of traditional consumer packaged goods (CPG) giants like Campbell.
Pacific Foods marks Campbell’s fifth acquisition in five years. Other acquisitions include Bolthouse Farms and Garden Fresh Gourmet.
Read Full Article: Campbell Soup Looks to ‘Get Real’ | eMarketer Retail
