Published on : Jul 23, 2015
Campbell Soup Company announced that it would discontinue the use and addition of monosodium glutamate (MSG) to its line of condensed soups for children. The company will launch new organic products for kids such as purees listed under the production of Plum line. It has plans to increase the organic offerings in the effort to the changing consumer tastes across the globe.
The company said on Wednesday that the first line of soup products will be launched under the new policy. The first batch will hit the U.S. super marts in August. Campbell also aims to launch Pepperridge Farm Goldfish crackers composed of organic wheat.
Campbell is taking the efforts of reinventing its strategies and products for a better and wider growth trajectory, added Chief executive, Denise Morrison in an interview. The company’s efforts are entirely reshaping the portfolio of its products.
By 2018, Campbell is planning to remove the artificial colors and flavors from all of its North American products. The food line of the company has plans to change its preference and move away from high fructose corn syrup in few of the food products. The most prominent one is moving away from Pepperridge Farm fresh breads by the end of the forecast period 2017.
Many new products are supposed to launch in 2016 and none will certainly contain corn syrup.
Campbell is struggling hard to grow in the market as the U.S. consumers are shifting their preferences from the processed items found in the supermarkets or grocery stores. They are now opting for fresher products on the perimeter.
On Wednesday, Campbell reduced its organic sales growth forecast to about 1-3% from 3-4% in order to reflect the sluggish growth environment in the overall packaged food industry. Campbell’s organic sales have not increased for about two quarters now.
Campbell now aims to increase its sales of snacks and biscuits in emerging markets such as China and Indonesia.
The company is also curbing down on its job cuts and implementing zero-based budget which only needs managers.
Campbell is expected to save $75mn in 2015 and raise its earnings up to $2.43-$2.46 from a value of $2.32-$2.38.