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How Is Campbell's Capitalizing on Shifting Consumer Preferences?
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Key Takeaways
Campbell's launched its first gluten-free chicken noodle soup with Banza after 150 years.
CPB said cooking-oriented soups remain a steady growth driver in Meals & Beverages.
The company plans to spend more on insights, brand support and product innovation.
The Campbell's Company (CPB - Free Report) is leaning further into evolving consumer preferences, using innovation and partnerships to expand the appeal of its iconic brands. The company’s latest move brings a fresh twist to one of its best-known products while tapping into rising demand for healthier and specialty food options.
Campbell’s and Banza have introduced Campbell’s Condensed Gluten Free Banza Chickpea Pasta and Chicken Soup, marking the first time in the brand’s roughly 150-year history that its flagship chicken noodle soup is available in a gluten-free format. The product combines Campbell’s traditional recipe with Banza’s chickpea-based pasta, which was specially developed to maintain its texture in broth. The soup is made with No Antibiotics Ever chicken sourced from USDA-approved U.S. suppliers.
The launch targets a growing market opportunity, with nearly 30% of U.S. consumers actively seeking gluten-free options. Through the partnership, Campbell’s aims to deliver the familiar taste of its iconic chicken noodle soup while extending the brand to consumers with specific dietary preferences.
The move also reflects Campbell’s ongoing efforts to reinforce its Meals & Beverages business. Management recently noted that cooking-oriented soup products have remained a steady growth driver, underscoring the resilience of the category and the importance of continued product innovation.
Strategically, the launch fits with Campbell’s efforts to strengthen its innovation pipeline and capitalize on durable at-home cooking trends. Management has indicated that Campbell’s plans to increase investments in consumer insights, brand support and product innovation to drive growth across its Meals & Beverages portfolio. The company also sees opportunities to introduce products that deliver new occasions and added health benefits, making innovations such as the gluten-free chicken noodle soup a natural extension of its strategy to keep the soup category relevant and broaden the consumer appeal.
Campbell's Zacks Rank & Share Price Performance
Shares of this Zacks Rank #4 (Sell) company have fallen 24.1% over the past six months, underperforming the industry’s decline of 15.2%. The stock also underperformed the broader Consumer Staples sector and the S&P 500, which rose 4.9% and 12.9%, respectively, over the same period.
CPB Stock's Past 6 Month Performance
Image Source: Zacks Investment Research
Is Campbell's a Value Play Stock?
Campbell's currently trades at a forward 12-month P/E ratio of 10.42, which is lower than the industry average of 14.14 and below the sector average of 16.91. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
CPB P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 8.3% and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank of 2 (Buy). TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.8% and 1.9%, respectively, from the year-ago reported numbers.
View the Zacks #1 Rank List
Image: Bigstock
How Is Campbell's Capitalizing on Shifting Consumer Preferences?
Key Takeaways
The Campbell's Company (CPB - Free Report) is leaning further into evolving consumer preferences, using innovation and partnerships to expand the appeal of its iconic brands. The company’s latest move brings a fresh twist to one of its best-known products while tapping into rising demand for healthier and specialty food options.
Campbell’s and Banza have introduced Campbell’s Condensed Gluten Free Banza Chickpea Pasta and Chicken Soup, marking the first time in the brand’s roughly 150-year history that its flagship chicken noodle soup is available in a gluten-free format. The product combines Campbell’s traditional recipe with Banza’s chickpea-based pasta, which was specially developed to maintain its texture in broth. The soup is made with No Antibiotics Ever chicken sourced from USDA-approved U.S. suppliers.
The launch targets a growing market opportunity, with nearly 30% of U.S. consumers actively seeking gluten-free options. Through the partnership, Campbell’s aims to deliver the familiar taste of its iconic chicken noodle soup while extending the brand to consumers with specific dietary preferences.
The move also reflects Campbell’s ongoing efforts to reinforce its Meals & Beverages business. Management recently noted that cooking-oriented soup products have remained a steady growth driver, underscoring the resilience of the category and the importance of continued product innovation.
Strategically, the launch fits with Campbell’s efforts to strengthen its innovation pipeline and capitalize on durable at-home cooking trends. Management has indicated that Campbell’s plans to increase investments in consumer insights, brand support and product innovation to drive growth across its Meals & Beverages portfolio. The company also sees opportunities to introduce products that deliver new occasions and added health benefits, making innovations such as the gluten-free chicken noodle soup a natural extension of its strategy to keep the soup category relevant and broaden the consumer appeal.
Campbell's Zacks Rank & Share Price Performance
Shares of this Zacks Rank #4 (Sell) company have fallen 24.1% over the past six months, underperforming the industry’s decline of 15.2%. The stock also underperformed the broader Consumer Staples sector and the S&P 500, which rose 4.9% and 12.9%, respectively, over the same period.
CPB Stock's Past 6 Month Performance
Image Source: Zacks Investment Research
Is Campbell's a Value Play Stock?
Campbell's currently trades at a forward 12-month P/E ratio of 10.42, which is lower than the industry average of 14.14 and below the sector average of 16.91. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
CPB P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 8.3% and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank of 2 (Buy). TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.8% and 1.9%, respectively, from the year-ago reported numbers.