One of America’s largest food brands, Campbell Soup Co. has purchased organic soup firm Pacific Foods for $700 million.
A future with Campbell means we can maintain what we value while accelerating growth of the brand…, reaching more people while increasing our impact on sustainable agriculture.
Pacific Foods is renowned for producing organic soup, broths, meals, shelf-stable plant-based beverages and side dishes. Campbell’s will keep the Pacific branding, according to Food Business News.
The acquisition, subject to regulatory approvals and customary closing conditions, signals the global consumer switch to healthier foods.
The latest official figures state that Americans spent $43.3 billion on organic food and beverage in 2015, and this figure is set to increase beyond the $50 billion mark in 2017. Analysts point out that organic products are becoming big business not just in America but worldwide.
Campbell Soup Co. posted a turnover of $7.96 billion in 2016, compared to the organic firm which generated $218 million in the last fiscal year. The former is hoping the latter will increase its footprint in the ever-growing organic foods and beverage sector.
According to data from Information Resources, organic foods have had an annual growth rate of 15.3% over the past four years.
Pacific Gives Campbell Soup a Position in Organic Market
“This acquisition is consistent with our purpose, ‘Real food that matters for life’s moments,’” Denise Morrison, president and CEO of Campbell Soup, said. “Pacific is an authentic brand with a loyal consumer following. The acquisition allows us to expand into faster-growing spaces such as organic and functional food.
“Moreover, Pacific Foods is an excellent fit with Campbell — strategically, culturally and philosophically. It advances our strategic imperatives around real food, transparency, sustainability and health and well-being. Culturally, Campbell and Pacific Foods share similar values and a commitment to a purpose-driven approach. Philosophically, both companies believe in making food that we are proud to serve at our own tables using simple, recognizable ingredients,” Morrison added.
The American soup giant says it plans on expanding its organic arm, increase distribution, pump more money into marketing and invest in research and development.
While, Pacific Foods also sees room to grow under the new deal. It already employs 540 workers and operates a certified organic manufacturing plant in Tualatin, Oregon, and expects the firm to expand under the take-over. Co-founder and CEO Chuck Eggert will remain in his position with the company.
“We’ve spent the past 30 years focused on making nourishing foods with an emphasis on simple, organic ingredients and authentic, rich flavors,” Chuck Eggert said. “Looking ahead, a future with Campbell means we can maintain what we value while accelerating growth of the brand in a way that we couldn’t do alone, reaching more people while increasing our impact on sustainable agriculture.”
Experts state the acquisition is an important one, because it’s one of the first main indicators that consumers are switching more toward health and wellness products in the United States.