Campbell to go more organic by eating Pacific Foods


Friday, 14 July, 2017


In the US, the Campbell Soup Company is acquiring organic broth and soup company Pacific Foods for US$700 million in cash.

Pacific Foods has strong health and wellbeing and organic credentials, particularly with younger consumers. This acquisition will assist Campbell to meet consumers’ changing tastes and preferences, with more access to natural and organic customers and channels.

With a compound annual growth rate of 15.3% over the past four years, organic food is a more than $11 billion category in the US.

Campbell plans to bring its expertise and scale to Pacific Foods and invest in the business to drive full-force growth. Campbell expects to expand distribution, boost marketing support for brand building to engage consumers and shoppers, and invest in R&D and the supply chain to deliver operations and customer service excellence.

Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the US, Canada and Latin America.

Pacific Foods has around 540 employees and operates a certified organic plant. The company will maintain its farm-to-table approach, with CEO and co-founder Chuck Eggert staying on as a supplier of key ingredients through his family farms.

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