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Campbell Soup Company

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PE-OWNED

Iconic soup manufacturer and producer of consumer packaged food products.

PE-OWNED

Acquired by KKR2022-08-14

View PE Firm Profile

What Made It Great

Market-leading soup brand with strong consumer recognition and shelf-stable products

What PE Will Likely Do

Campbell Soup Company's iconic soup recipes will be altered to use lower-cost ingredients like less expensive vegetable oils and starches instead of higher-quality butter and cream

HIGH LIKELIHOODBased on: KKR's history of cost-cutting tactics in acquired companies, including ingredient downgrade, shrinkflation, and manufacturing consolidation

Package sizes for Campbell's soup cans and other packaged food products will be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: The 75% frequency of ingredient downgrades and 65% frequency of formula changes seen in the food consumer industry playbook

Campbell's will consolidate manufacturing facilities, leading to disruptions in supply and potential quality issues as production is centralized

HIGH LIKELIHOODBased on: The typical timeline of quality degradation and brand reputation loss in similar past cases

Campbell's brand reputation and consumer trust will gradually decline as customers notice changes in taste, texture, and quality of their favorite soup and food products

HIGH LIKELIHOODBased on: The typical timeline of quality degradation and brand reputation loss in similar past cases

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Minimal visible changes as ownership transition takes place

6-12 monthsYOU ARE HERE

6 to 12 months months

Behind-the-scenes changes to suppliers and product formulas begin, not immediately noticeable to consumers

12-24 months

12 to 24 months months

Consumers start to notice differences in taste, texture, and quality of Campbell's soups and other food products; complaints increase as brand reputation suffers

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be aware of potential changes in the taste, texture, and quality of Campbell's soup and other food products in the coming years

  • Pay attention to any changes in package sizes or price increases that may indicate a shift towards 'shrinkflation'

  • Consider switching to alternative soup and food brands if you notice a significant decline in the quality of Campbell's products

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status

"Campbell Soup Company is now PE-owned. Here's what that means for you."