Campbell's Prudent Pursuit of Efficiencies Should Allow for Continued Brand Spending

Over the past 10 years, Campbell's has orchestrated significant changes. For one, the portfolio mix has shifted significantly: Its core soup lineup now accounts for just over 25% of total sales (down from more than 40% in fiscal 2017), while snacks account for just over 40% (up from 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 1% average annual organic sales growth over the past five years alongside low-teens average adjusted operating margins.