Supplier insights: the Campbell Soup Company’s playbook for future growth

Stewart Samuel
Program Director - Canada
@RetailAnalysis

Date : 04 September 2020

The Campbell Soup Company rounded off a strong full year performance with an excellent Q4 performance, underpinned by COVID-19 driven demand. We look at the steps the business is taking to drive stronger future growth.

1. Retaining new households

  • Having captured millions of new households, even if retention is modest, it will offer significant incremental growth
  • Retaining younger shoppers is a primary focus (almost 50% of new households are younger consumers) with NPD around better-for-you ranges, convenience platforms and children-specific ranges set to launch in the new financial year
  • Marketing spend upweighted as a key part of the strategy, reinforcing quality, value, comfort and versatility credentials

Source: IGD Research

2. Maximising cash flow and investment

  • Delivered incremental cash and profit growth which enabled it to reduce debt and improve efficiencies
  • This is also enabling investment in its brands, including marketing support to build awareness
  • It is adding more co-manufacturing and increasing capital investment to unlock further soup production
  • Future productivity gains to be driven by portfolio optimisation, re-thinking the supply chain and route to market and adapting to a hybrid work environment

3. Tapping into to sticky consumer behaviours

  • Resurgence of quick scratch cooking - marketing messages to reinforce versatility and usage ideas as consumers are showing greater confidence in their own cooking ability and being more creative, compared to at the start of the pandemic
  • Expanded snacking occasions - new products set to launch to capture the breakfast at home opportunity, while also adding manufacturing capacity in kids’ snacks
  • The shift to online - using digital platforms to reach younger consumers
  • Focus on value – including emphasising scratch cooking and balancing promotional activity versus supply chain challenges

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