• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil

2

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

3

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

1

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil

2

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

3

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
RetailCampbell's

Campbell Soup Shares Drop On Wilted Fresh Food Sales

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
February 17, 2017, 10:15 AM ET
Add Fortune on Google for similar content.

Campbell Soup CEO Denise Morrison’s bet on healthy foods is continuing to drag down the soup maker.

On Friday, the Big Food maker posted disappointing fiscal second-quarter quarterly sales, as results were again hurt by the company’s Campbell Fresh division. Sales for that business tumbled 8% to $260 million due to lower sales of carrots, Bolthouse Farms refrigerated beverages, and Garden Fresh Gourmet. Campbell Soup had previously warned that the business was facing challenges but had hoped sales for the current fiscal year would return to growth. Morrison said Campbell now expects sales for the fresher foods unit will decline for the year.

“Let’s be real, I’m not satisfied with our overall sales performance in the quarter,” Morrison told analysts during a conference call. “Our performance over the last year in fresh has been disappointing.”

Total sales slipped 1% to $2.17 billion, worse than Wall Street’s projection of $2.22 billion. Wall Street investors sent shares about 6% lower on Friday.

Campbell’s Fresh division was built by Morrison as a way to compete in the consumer-driven trend to eat more healthier and fresh foods. Morrison claims that 80% of consumers say they are trying to eat healthier, so she and others believe it is important to get more products on the perimeter of the grocery store where fresher foods are stocked. Campbell and many other Big Food makers traditionally have stocked foods in the center of the store, where the company’s soups, Goldfish and Prego brands are found.

The company bulked up on fresh foods via acquisitions, including the company’s $1.55 billion takeover for healthy juice maker Bolthouse Farms in 2012 and the $231 million deal for Garden Fresh Gourmet in 2015. The soup maker bought those brands to boost sales, but both are posting sales declines.

Bolthouse Farms has been stung by some capacity constraints. Garden Fresh Gourmet, meanwhile, was a Midwestern brand and Campbell had acquired it with the hope it could expand the brand nationally. But Morrison explained that Campbell didn’t differentiate recipes to meet the taste profiles that consumers wanted in other regions of the country. As a result, Garden Fresh failed to be an attractive brand to those newer customers. She promised that new recipes and new packaging for the Garden Fresh brand would be better received.

The problems Campbell has reported with some of the newer brands it has acquired points to the challenges that Big Food manufacturers face when they acquire smaller, fast-growing startup brands with the hope that a big boost in distribution and marketing can result in stellar growth. It isn’t always that simple: Sometimes there are issues with the packaging, the recipes, or even issues with management and culture when Big Food tries to incorporate a startup founder and their team into the fold.

Campbell is trying to address this by reshuffling the management team of Campbell Fresh to be a mix of legacy Bolthouse Farms employees and some in-house talent from Campbell. The division is now being led by Campbell insider Ed Carolan, who took the helm last year.

Campbell’s carrot business has also been problematic. There were quality issues last year and more recently, Campbell’s carrot harvesting in California has been hurt by poor weather conditions in California. “Fresh food is more perishable and therefore more fragile,” Morrison said. “There is no roof over the carrot fields. The business has been much more volatile than expected.” She added that more work needed to be done to correct how Campbell sources carrots.

Despite all the woes, Morrison told investors Campbell would remain committed to the category and also future potential acquisitions within that space.

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

The Best Rowing Machines (2026): Trainer Tested and Approved
HealthDietary Supplements
The Best Rowing Machines (2026): Trainer Tested and Approved
By Christina SnyderJuly 8, 2026
6 hours ago
‘Even shaving one minute off an EMT trip for severe cases can generate huge economic benefits.’ Well, New York’s congestion pricing did just that
North AmericaNew York City
‘Even shaving one minute off an EMT trip for severe cases can generate huge economic benefits.’ Well, New York’s congestion pricing did just that
By Catherina GioinoJuly 8, 2026
7 hours ago
Jonathan Bensamoun (right) sits on a stool next to his German Shepherd
InnovationPet Tech
Exclusive: Fi is bringing Starlink satellite technology to dog collars
By Lily Mae LazarusJuly 8, 2026
8 hours ago
Fleek cofounders Sanket Agarwal and Abhi Arora pictured reclining on a pile of vintage clothing.
Startups & VentureVenture Capital
Exclusive: Fleek, an online marketplace connecting vintage clothing wholesalers and retailers, raises $25 million in new funding
By Jeremy KahnJuly 8, 2026
18 hours ago
Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
AsiaChina
Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
By The Associated Press and Chan Ho-HimJuly 7, 2026
1 day ago
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
North AmericaNew York
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
By The Associated PressJuly 7, 2026
1 day ago

Most Popular

Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
Newsletters
Iran strikes 85 U.S. military sites in the Gulf, sparking a global selloff in stocks and a spike in the price of oil
By Jim EdwardsJuly 8, 2026
15 hours ago
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
2 days ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
3 days ago
Presidents aren't supposed to pick winners, former White House ethics lawyer says. Trump keeps choosing Dell
Politics
Presidents aren't supposed to pick winners, former White House ethics lawyer says. Trump keeps choosing Dell
By Mia OsmonbekovJuly 7, 2026
1 day ago
Current price of oil as of July 7, 2026
Personal Finance
Current price of oil as of July 7, 2026
By Joseph HostetlerJuly 7, 2026
1 day ago
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
Success
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
By Orianna Rosa RoyleJuly 3, 2026
6 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.