Campbell’s Soup Faces Serious Challenges

Campbell’s Soup Faces Serious Challenges

 

Campbell’s Soup, a beloved staple in American kitchens for nearly two centuries, is now on the brink of potential closure. The company’s struggles are largely driven by changing consumer preferences, with more people opting for natural, unprocessed foods over Campbell’s traditional, processed offerings.

 

In an attempt to stay relevant, Campbell’s expanded its portfolio through a series of acquisitions, but this strategy has resulted in a heavy $9 billion debt burden.

 

CEO Mark Clouse Discusses Holiday Shopping Trends

CEO Mark Clouse Discusses Holiday Shopping Trends

 

Adding to the company’s difficulties is an ongoing internal power struggle. The Dorrance family, which owns 40% of Campbell’s shares, is in conflict with activist investor Daniel Loeb of Third Point, who holds about 7% of the stock. Loeb is pushing for radical changes, including rebranding the company and altering Campbell’s iconic red and white cans, which has led to legal disputes over alleged mismanagement.

 

Recently, Campbell’s agreed to appoint two directors nominated by Third Point, signaling possible changes as the company fights to survive.