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Snacks are a star for Campbell Soup Company, led by Goldfish
The CPG aims to grow Goldfish to $1 billion in sales.
The Campbell Soup Company's portfolio goes beyond the iconic red and white cans. In fact, it includes a number of recognizable snack brands like Goldfish, Lance and Kettle. After a revamp over the last several years, these snacks provided a big boost for the CPG company in its most recent quarter, which ended January 29.
Across the snacks category, revenue was up 15%, in-market consumption was up 17%, and the company’s power brands were growing at 20%.
CEO Mark Clouse called the performance of the category “a significant step in our journey.”
“In Q2, we had the strongest share growth in both cookie cracker and salty snacks among all major branded players, even more impressive as we are among the very few who compete in both of these critical categories,” Clouse told analysts on an earnings call, adding that margin improved, as well. “Although benefiting from pricing, we also drove favorable volume mix.”
Goldfish is the “star of the snack business,” and is approaching $1 billion in annual sales, Clouse said. It posted 21% consumption growth in the quarter.
“This was the second consecutive quarter of Goldfish being the largest driver of growth for the entire cracker category,” Clouse said. “And our strategy to expand our consumer target has been even more successful than expected with growth versus prior year in both buy rates and repeat rates among households without children about equal to households with children.”
While Goldfish is recognizable, Campbell is also taking steps to keep the brand fresh. In each of the last six quarters, it rolled out a limited edition-only launch to add new flavors and colors. Consumers are eating it up, as they are twice as likely to buy limited-edition offerings as the standard products.
The company is also innovating on the product itself. Kettle recently rolled out air fried potato chips that takes the home cooking phenomenon and applies it to mass manufacturing through a patented process.
Over the last two years, Campbell Soup has worked to revamp the portfolio to drive growth across all of the brands.
“It really is a combination of great marketing support, the right innovation and then a supply chain that's stepping up to meet that growing and expanding demand,” Clouse said.
The team behind snacks is also set to make moves. With the company closing offices in Norwalk, Connecticut and Charlotte, North Carolina, the snacks leadership team is relocating to the company’s headquarters in Camden, New Jersey.
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Kellogg's takes inspiration from employees, Latin in snacks rebrand
Kellanova is now the parent of Pringles, Cheez-Its and Pop Tarts.
Kellogg Company's snacks business is now Kellanova. Here are a few finer points about how the forthcoming parent of Cheez-Its and and Pop-Tarts arrived at the new name.
Last year, Kellogg announced plans to split its business into multiple companies.
Now, one company will have North American cereals like Frosted Flakes, Froot Loops and Rice Krispies under the WK Kellogg Co banner.
Another will have snacks like Pringles, North American frozen foods such as Eggo and plant-based brands like MorningStar Farms.
This week, Kellogg announced that the snacks business has a new name: Kellanova.
Here are the strategies that Kellogg employed that led to this name:
- Ask the employees: Kellogg Company asked employees for input on the name, and received 4,000 suggestions from 1,000 employees.
- Listen to the results: 20% of the employees suggested a variation of the W.K. Kellogg name, while other employees suggested that the name include "nova."
- Go to the root: "Nova" comes from the Latin word for new. CEO Steve Cahillane said it "signals our ambition to continuously evolve as an innovative, next generation, global snacking powerhouse."
As The Wall Street Journal reports, this is just the latest new company name to take a Latin root in recent years, as Kellanova joins GE Vernova, Mondelez and Altria. It's also among a number of spinouts being completed by corporations, joining GSK spinoff Haleon, J&J's Kenvue and a forthcoming company that will spin out of 3M.
Even with a name that emphasizes moving forward, Kellanova is keeping one element that is familiar: The logo still has the iconic cursive K. It will even get the boldly simple stock ticker symbol "K" to go along with it.
Even the WK Kellogg Co is combining the past and future. The company is seeking to position itself as a "117-year-old startup," even as it draws on the name and signature of the Kellogg's founder. There's even a more subtle hint about an unwritten chapter: The "Co" doesn't have a period.
To get to the future, you need to bring along a bit of the past.