Campbell’s Soup, a beloved staple in American households for nearly two centuries, is facing an uncertain future as it battles declining sales and mounting challenges.
The iconic brand is struggling to keep up with shifting consumer trends, as more people opt for natural and unprocessed foods over Campbell’s traditional processed products. In an effort to stay relevant, the company expanded its offerings through acquisitions, but this strategy left it saddled with a staggering $9 billion in debt.
Adding to its troubles is a heated internal conflict. The Dorrance family, which owns 40% of Campbell’s shares, is clashing with activist investor Daniel Loeb of Third Point, who holds approximately 7% of the company’s stock. Loeb is pushing for bold reforms, including a rebranding effort that would alter the company’s iconic red and white cans—a proposal that has sparked legal battles and accusations of mismanagement.
In a recent move to ease tensions, Campbell’s agreed to add two directors nominated by Third Point to its board. While this could signal the start of significant changes, the company’s future remains uncertain as it strives to regain its footing in an evolving marketplace.
