Campbell’s Ditching The Soup… Will This Rebrand Make Investors Hungry or Sick?

Alright now, I feel like Campbell’s Soup is pulling a fast one on us. They’re dropping “soup” from their name. Yeah, you heard that right—no more “Campbell Soup Company.” They’re going with “The Campbell’s Company” now because soup just isn’t cutting it anymore. It's like your friend who insists on a nickname after they’ve watched one too many episodes of Suits. This move might seem like a small branding tweak, but for a 155-year-old company that’s flooded the world with billions of cans of tomato-y goodness, it's a big shift.

Let’s face it, soup sales have gone cold. Campbell’s hasn't been just a soup company for a while now. In 2015, Campbell's classic cans brought in $2.8 billion; by 2023, that number dipped slightly to $2.7 billion. Meanwhile, snacks (thanks to brands like Goldfish, Snyder’s of Hanover, and Kettle Chips) have become the company’s real winners, accounting for $4.6 billion in sales last year. 

Mark Clouse, the CEO since 2019, has been on a mission to shake things up, by acquiring snack companies and making Rao’s pasta sauces part of Campbell’s portfolio, he’s pulling out all the stops to prove Campbell’s can be a snacking monster too.

Now, rebrands can either go really well or turn into an absolute dumpster fire. Dunkin’ did it right when they dropped “Donuts” from their name in 2019. They leaned hard into their coffee game, and it paid off with coffee sales surging from 1.6 billion cups in 2019 to 4.4 billion in 2021. On the flip side, Tropicana’s 2009 rebrand was a disaster. They ditched their iconic orange-and-straw packaging for something boring, and people freaked out. Sales plummeted 20%, and they lost $30 million in two months. 

Along with the name change, Campbell’s is updating its product lineup to attract both new and old customers. It’s adding trendy flavors like Ghost Pepper Chicken Noodle and Nashville-Style Hot Chicken soups, clearly aimed at younger, bolder taste buds. Meanwhile, it's refreshing its Healthy Request line for older, health-conscious consumers. This move fits with the rebranding strategy, showing that Campbell’s is leaning into modern tastes without abandoning its more traditional (but profitable) base.

Additionally, Campbell's recent $2.7 billion acquisition of Sovos Brands, makers of Rao’s sauces, plays a big part in its transformation. In Q3 of 2024, Campbell's net sales jumped 6%, thanks in part to the Sovos acquisition. The rebrand isn’t just cosmetic—it’s part of a broader plan to make Campbell’s a major player in both the snack and meal spaces.

In the end, it’s not just about dropping a word from the name. It’s about showing people that Campbell’s is way more than what’s in those red-and-white cans. If they can pull off a Dunkin’-style reinvention, this could be a smart move. But if it flops? Well, let’s hope they don’t Tropicana themselves into a branding nightmare. 

Campbell’s shares are up almost 16% YTD.

Stocks.news holds a position in Campbell’s.