Campbell Soup expands portfolio of organics
Campbell Soup Company is looking to drive growth with its acquisition of Pacific Foods of Oregon.
Pacific Foods is a leading producer of organic broth and soup and also produces shelf-stable plant-based beverages and other meals and sides.
Organic food is an $11 billion category in the U.S., which grew at a compound annual growth rate of 15.7 percent over the past four years. Pacific Foods offerings will join Campbell's portfolio of organic foods.
“Pacific Foods is an excellent strategic fit with Campbell’s health and well-being portfolio with its strong position in the faster-growing natural and organic category," said Denise Morrison, Campbell’s President and Chief Executive Officer. "We are thrilled to add such a powerful and respected organic brand to our company and intend to leverage our expertise and resources to build on Pacific’s track record of sales growth.”
Pacific Foods will be part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the U.S. and Canada. Led by Mark Alexander, President, the Americas division includes many leading brands such as Campbell’s, V8, Swanson, Prego, Pace and Plum Organics.
Campbell named Joe Folds as Vice President and General Manager, Pacific Foods. Folds has extensive, global experience leading businesses and brands for Campbell since joining the company in 1997. He was most recently Vice President, Strategy, Business Development and Global Brands, Global Biscuits and Snacks.
Campbell plans to invest in the business to drive growth. Campbell expects to expand distribution; boost marketing support for brand building; and invest in R&D and the supply chain to deliver operations and customer service excellence. Campbell will immediately begin to integrate Pacific Food’s key functions.
Campbell expects that Pacific Foods will contribute approximately $100 million in net sales in fiscal 2018.
Campbell’s overall portfolio includes Pepperidge Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal Dansk, Kjeldsens, Garden Fresh Gourmet and Pacific Foods.