News

Campbell Soup Company to acquire Pacific Foods for $700 million

13 Jul 2017

Campbell Soup Company is to acquire Pacific Foods of Oregon for $700 million in cash. Founded in 1987, Pacific Foods is a producer of organic broth and soup, and also produces shelf-stable plant-based beverages and other meals and sides.

Campbell Soup Company to acquire Pacific Foods for $700 million

Campbell Soup Company is to acquire Pacific Foods of Oregon for $700 million in cash. Founded in 1987, Pacific Foods is a producer of organic broth and soup, and also produces shelf-stable plant-based beverages and other meals and sides. The company generated approximately $218 million in trailing twelve month net sales as of May 31, 2017.

According to Campbell, Pacific Foods is a natural foods industry pioneer that has strong health and well-being and organic credentials, particularly with younger consumers. Its products and approach are very closely aligned with Campbell’s real food philosophy, it says, and will help accelerate Campbell’s efforts to deliver real food and beverages that meet consumers’ changing tastes and preferences. The acquisition will also further Campbell’s efforts to drive innovation in health and well-being o reinvent the center store, while giving the company more access to natural and organic customers and channels, the company said.

Campbell notes that prganic food is a more than $11 billion category in the U.S., which grew at a compound annual growth rate of 15.3 percent over the past four years.2

“This acquisition is consistent with our Purpose, ‘Real food that matters for life’s moments.’,” said Denise Morrison, Campbell’s President and Chief Executive Officer. “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.”

Campbell says it plans to bring its expertise and scale to Pacific Foods and invest in the business to drive full force growth. Campbell expects to expand distribution; boost marketing support for brand building to engage consumers and shoppers; and invest in R&D and the supply chain to deliver operations and customer service excellence.

Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the U.S., Canada and Latin America.

Founded in 1987 in Tualatin, Ore., Pacific Foods has approximately 540 employees and operates a certified organic plant where it produces its namesake products. Campbell plans to continue to operate Pacific Foods out of Tualatin. The company will maintain its farm-to-table approach with CEO and co-founder Chuck Eggert staying on as a supplier of key ingredients through his family farms.

This is Campbell’s fifth acquisition in five years as the company continues to reshape its portfolio for growth. The company acquired Bolthouse Farms in 2012, organic baby-food company Plum and biscuit company Kelsen in 2013, and fresh salsa and hummus maker Garden Fresh Gourmet in 2015. This acquisition is the latest in a series of moves Campbell has made to diversify its portfolio in response to increased consumer interest in health and well-being.