In the Face of Headwinds, Campbell's is Wisely Focused on Extracting Costs to Fuel Brand Spending

Over the past six-plus years, Campbell's has orchestrated significant changes. For one, the portfolio mix has shifted quite dramatically, such that its core soup lineup now accounts for just over 25% of total sales (down from more than 40% in fiscal 2017), while snacks make up just more than 40% (versus less than 30%). In addition, the firm has worked to drive efficiencies across its supply chain and manufacturing network to boost spending behind its brands and capabilities, thereby solidifying its competitive edge. The byproduct of these efforts has been a 1% average annual organic sales growth over the past five years against low-teens average adjusted operating margins.