CAMDEN, NJ. — Executives at the Campbell’s Co. noted weak performance in the company’s Snacks business unit has them set to make changes. No. 1 on the list of things to do is growing Goldfish, said Todd Cunfer, chief financial officer.
“We’ve stabilized the (Goldfish) business, but it’s still kind of down 1%, 2%,” Cunfer said during a June 8 conference call to discuss third-quarter earnings. “We’ve got to get that to growth. That’s the biggest and most profitable piece of the Snacks portfolio.”
Mick Beekhuizen, president and chief executive officer of Campbell’s Co., said focusing on the core of the Snacks portfolio and core of the brand are vital to getting back to growth. In the case of Goldfish, that means a focus on households with children.
“That is proven to be a fruitful strategy,” Beekhuizen said. “You’ve seen that over the past two quarters, that core part of the Goldfish brand has stabilized and we are going to continue to put incremental fuel behind that.”
He said the company has strong plans for the summer and back-to-school period, with stepped-up merchandising including feature and display support, and stronger omnichannel execution that improves how Goldfish shows up for families both in-store and online.
“A great example of innovation that is tailored to households with kids is our recent collaboration with Pokemon to celebrate its 30th anniversary,” Beekhuizen said. “Additionally, we will be launching a new advertising campaign highlighting the brand’s playful legacy as ‘the snack that smiles back.’”
He added that Goldfish multipacks are growing, with sales up 6% over the past 13 weeks.
An example of innovation that is tailored to households with children is Goldfish’s recent collaboration with Pokemon.
Elsewhere in Campbell’s portfolio, “measurable progress” was made during the third quarter in the company’s Pepperidge Farm business, where the focus in fresh bakery remains on “improved execution and service,” Beekhuizen said. He said the company improved on-shelf availability and customer fill rates from the low levels experienced earlier this year.
“While consumption was pressured during the quarter, down 7.5% relative to a category that was down modestly, we view our performance as largely the result of decisions we made to stabilize our network,” he said. “Now, with operational metrics in a stronger place, we are beginning to reintroduce promotions in a disciplined way. With increased focus on our top selling products and a pipeline of further operational improvements set to be rolled out in the coming quarters, we expect to make progress towards delivering more consistent performance in line with the category.
“In cookies, we declined 2.6% but essentially held share during Q3 as we began to lap the initial launch and heightened levels of display activity for white chocolate Milano last year. Chessmen grew once again, benefiting from solid innovation and merchandising support. These successes demonstrate the durability of premium indulgence and the consumer’s appetite for delicious snacks.”
Net income at the Campbell’s Co.’s in the third quarter ended May 3 was $124 million, equal to 42¢ per share on the common stock, and an improvement over the same period of the previous year when the company earned $66 million, or 22¢ per share. Quarterly sales fell to $2.4 billion from $2.5 billion the year prior.
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Innovations at the show included new formats and formulations.
Formulations are driving innovation in dairy and milk alternatives.
