This category covers all aspects of the processed and packaged food industry, including ready-to-eat meals, snacks, beverages, frozen foods, and other value-added products.
NEW YORK — Campbell Soup Co. has transformed its portfolio over the past few years in several ways: by focusing on brand scale and breadth, reforming the supply chain, innovating in product development and consistently delivering on what the company says.
Coming out of a “prolonged period of macroeconomic and environmental challenges,” the company is currently at an inflection point, said Mark Clouse, president and chief executive officer. He spoke June 13 during a “virtual fireside chat” to the Evercore ISI Consumer and Retail Conference in New York.
“… I can tell you with a high degree of confidence, I really feel terrific about where we are, and I feel really good about how I think we’re positioned against competition both from the brand as well as (the) self-help story on margin and earnings growth,” he said.
Campbell Soup’s third-quarter net earnings fell 17%, but net sales were up 6% over the year-ago period due to the company’s Sovos Brands acquisition. Although Meals and Beverages sales rose 15% in the quarter, sales in the Snack business slipped 2%.
The company has targeted the snacking sector over the past two years, which Clouse called “a little overly ambitious in our projections,” although he added that he has no concern about the “structural nature of the behavior of snacking” and what it means to consumers.
He said the company’s portfolio “is really well-positioned in what I would call the more elevated … added value experience spaces, which is really the primary driver of growth in snacking, where people are seeking either unique flavors, texture, more unique experience.”
One example is the recent debut of Pepperidge Farm Goldfish crackers with a spicy dill pickle flavor.
A consequence of the pivot toward snacks is the company’s soup business now represents less than 25% of the total portfolio, Clouse said. While he noted soup was “still an important business,” snack products in the form of “eight power brands” now comprise two-thirds of Campbell Soup’s total business.
Those brands include Goldfish, plus Late July chips and Pepperidge Farm cookies. Clouse indicated on a June 5 analyst call the latter two were a bright spot in what he expects to be short-term pressure on the category.
However, the company still continues to innovate in the soup category by recently introducing a line of spicy soups and broths under both its namesake label and the Swanson brand.
Meanwhile, Campbell Soup is making about $230 million in supply chain investments this year through 2027 to upgrade manufacturing facilities, close some less-efficient plants and move production to more modern ones.
Clouse told the Evercore ISI conference that while he wasn’t “anxious to go out and do more M&A,” he found the growth in authentic, ethnic snacking intriguing to watch.
“And the ability to bring more of that authenticity into the portfolio is yet another place of added value,” he said, adding, “But I feel very good about how our portfolio is positioned to match ultimately with where consumers are.”
Campbell Soup plans to hold an Analyst Day in September, its first in 2.5 years.
“So, we are looking forward to seeing everybody in September,” Clouse said. “I think it will be a great moment to take a little bit of stock on where we’ve been, and more importantly, talk about where we’re headed in the future.”
WASHINGTON — The Meat Institute recognized over 200 meat and poultry plants on April 17 at the 2024 Environmental, Labor and Safety+ Conference in New Orleans for their positive sustainability efforts.
Highlighting facilities that went beyond environmental compliance with an innovative plant upgrade or environmental program, the Meat Institute presented Environmental Achievement Awards. The winners represent establishments operated by JBS USA, Smithfield Foods and Tyson Foods. Smithfield was awarded first place across all Environmental Achievement Award categories, including Emissions Reduction, Energy Conservation, Packaging and/or Food Waste Reduction, Technological Innovation and Water Conservation.
“The Meat Institute congratulates each of these establishments and their leadership for ensuring their products contribute to a sustainable food system,” said Julie Anna Potts, president and chief executive officer of the Meat Institute. “Their hard work and innovation will ensure the meat and poultry industry continues to employ the highest standards and latest technology to produce wholesome, safe, nutritious products that consumers can be proud to put on their plates.”
Nearly 200 plants were also recognized at the conference for improving and achieving high levels of worker safety performance. A comprehensive list of Worker Safety Award Winners can be found on the Meat Institute website.
“The Meat Institute is honoring these establishments and their leadership for continuing to prioritize the health and safety of the hard workers who help feed America,” Potts said. “These awards recognize the commitments made by companies to continuously improve their workplace safety practices and reduce workplace injuries.”
Under the Health & Wellness awards categories, four companies were honored by the Meat Institute. The following companies were awarded:
Community Wellness – Tyson Foods was recognized for its contribution to community building and reducing the protein gap.
Corporate Wellness – Fresh Mark was recognized for its contribution to Healthy Lifestyle Programs and internal commitments.
Innovation – Marcus Technologies was recognized for its contribution to advancing Nutrition Science through nutrition research and education.
Nutrition Science – SugarCreek Packing was recognized for innovating and advancing the industry’s health and wellness priorities.
“Whether member companies are expanding childcare options, improving healthcare services or donating meat and poultry products, we are grateful for the leadership shown by these award winners,” Potts said.
Five companies were awarded the Meat Institute’s highest honor for Diversity, Equity and Inclusion (DEI), including American Foods Group, Bob Evans, Catelli Brothers, Fresh-Lock by Presto Products and Tyson Foods.
“It is clear that these companies have spent thoughtful time and energy on fostering an atmosphere of inclusivity and belonging for their employees,” Potts said.
All companies recognized at the Environmental, Labor and Safety+ Conference were eligible for awards because of their participation in The Protein PACT in 2023.
VEVEY, SWITZERLAND — Nestle SA reined in its full-year sales guidance, as chief executive officer Ulf Mark Schneider cited a tough consumer environment in reporting improved but mixed results for its fiscal 2024 first half.
Net earnings in the first half came in flat at 5.6 billion Swiss francs ($4.98 billion), though a gain in net profit margin lifted earnings per share by 1.8% to 2.16 Swiss francs ($1.92) on a reported basis. In constant currency, underlying EPS rose 3.3% to 2.51 Swiss francs ($2.23), while reported underlying EPS was down 1% to 2.40 Swiss francs ($2.13).
Companywide organic growth for the first six months of the year edged up 2.1%, reflecting real internal growth (RIG) of 0.1% and a 2% uptick in pricing, according to Nestle. The global food and beverage giant said reported sales fell 2.7% to 45.05 billion Swiss francs ($40.05 billion) from 46.29 billion Swiss francs in the prior-year period, including negative impacts of 4.4% from foreign exchange and 0.4% from net divestitures. That compared with 1.4% organic growth and a 5.9% decrease in reported sales for the first quarter.
“As we enter the second half of the year, we remain confident of our RIG momentum, but the pricing environment has become more challenging,” Schneider said in remarks on first-half results. “The general context is that consumers are under pressure, driving higher price elasticity, particularly in the US market. Increasingly, this has contributed to pressure on pricing as consumers seek value. The swing factor lately is increasing competitive intensity to address this environment. Retailers are competing for their share of a tighter consumer budget. Food and beverage companies, in turn, are responding with a whole new level of promotional intensity across categories. We have seen pricing coming down faster and are now reflecting it in our outlook.”
Nestle trimmed its full-year 2024 growth forecast for organic sales to “at least 3%” from the previous projection of “around 4%.” Likewise, the company now expects mid-single-digit growth in underlying EPS in constant currency, down from the earlier estimate of a 6% to 10% increase. The prior outlook of a moderate gain in underlying trading operating profit margin was reaffirmed.
“Given how the environment has unfolded, we consider it prudent to amend our guidance for the full year,” Schneider said.
For Nestle’s North American business, underlying trading operating profit was flat at 2.7 billion Swiss francs ($2.4 billion) for the first half, with margin ticking up 20 basis points to 21.8%. Pricing was up 1.4%. Reported sales dipped 2.5% to 12.23 billion Swiss francs ($10.87 billion) from 12.55 billion Swiss francs a year earlier. Organically, growth was down 0.1%, with RIG for the half declining 1.5% but turning positive in the second quarter at 2.8%. Foreign exchange had a negative impact of 2.5%.
“We said North America would see a RIG improvement in the second quarter, and the zone delivered that,” said Anna Manz, chief financial officer at Nestle. “The RIG swing from negative 5.8% in the first quarter to positive 2.8% in the second was significant. The second quarter RIG benefited from larger-than-usual orders from some retailers ahead of key July promotional campaigns. This phasing impact means that the zone’s continued RIG improvement won’t be linear in the second half.”
In North America, Nestle said it generated market share gains in pet food and coffee for the first half but saw share shrinkage in frozen pizza and coffee creamers.
“Purina PetCare continues to be the largest growth contributor, gaining RIG momentum and market share despite ongoing category normalization post-COVID and the recent inflation spikes,” Manz explained. “In addition, Zone North America progressed on the turnaround of frozen food, which swung from negative growth in the first quarter to positive in the second. New product launches in this business included expanded offerings for DiGiorno’s Ultra-Thin Crust pizzas and Stouffer’s Classic Single Serve. These innovations are aimed at catching those consumers who are seeking more affordable price points.”
By product category, the North American business tallied sales growth of mid-single digits in pet care, water and flavored water and confectionery, the latter led by Toll House in the United States and Kit Kat in Canada, Nestle said. Sales were roughly flat in beverages but decreased in infant nutrition and frozen food, a category that Nestle said is experiencing soft consumer demand and stiff price competition.
“Overall, in zone North America, we are seeing improving market share trends, largely driven by high-growth channels that are not widely tracked by third-party providers,” Manz said.
Those channels include e-commerce, warehouse clubs and pet specialty stores, which had double-digit sales growth in the second quarter and represented 80% of the North American zone’s quarterly growth.
“It’s very important that we do not over-interpret this snapshot here of Q2 2024 and now see that as the movie unfolding going forward,” Schneider told analysts in a July 25 conference call, referring to Nestle’s companywide results. “This is a very particular moment in time, with some tricky year-over-year comparisons, since we had taken price in some categories and geographies in Q2 last year. Also, it’s a moment in time where we’re still seeing significant value-seeking behavior on the part of the consumer, their stress in particular at the low end of the income scale in North America but also in select other geographies.”
Nestle has been “particularly strong” in its promotional intensity, Schneider noted. “From past quarters, we were very much focused on getting the RIG flywheel moving again, and that’s very important for continuous and sustained success. But we’re in no mood here to buy RIG going forward. Clearly, your RIG needs to be earned through compelling product and brand propositions going forward.”
The line between foodservice and home cooking continues to blur thanks to social media making restaurant dishes viral sensations. These influencers make chef-inspired meals look easy to prepare in a home kitchen, but the reality is that for many home cooks, attempts to recreate them become disastrous, especially when trying to make traditional dishes from around the world. This is where culinary scientists enter the picture, as they try to simplify authenticity while creating craveability.
Assistance with culinary science
A recurring message at the 2024 RCA Conference hosted by the Research Chefs Association at the Marriott Boston Quincy on March 5-7 in Quincy, Mass., was there are no rules when it comes to food innovation using Culinology. This is the discipline of blending culinary arts with the science of food. Think frozen sushi and lasagna soup.
For Bob Evans Farms, New Albany, Ohio, breaking the rules comes in the form of the company’s new Wanderlish line of fully cooked refrigerated entrees. Described as a “tapestry of tastes,” Wanderlish comes in three varieties. The Middle Eastern-inspired Chicken Shawarma includes turmeric rice pilaf and cucumber yogurt sauce, while the South African-inspired Peri Peri Chicken has jollof rice and herbed yogurt sauce. The Black Garlic Chicken draws inspiration from Thailand and contains coconut rice and tamarind sauce.
“Thoughtful explorers are a valuable consumer to bring to the heat-and-eat category,” said Andy Glick, culinary scientist at Bob Evans Farms. “They are younger, have high incomes and are willing to pay for quality. We are reinvigorating the home meal replacement category with affordable, yet exciting meals to discover and explore.”
This supports the 2024 RCA Conference’s theme of “Revolutionizing food, reimagining innovation.” Andrew Hunter, a research and development chef based in Los Angeles explained to attendees that umami and kokumi is where the action is in food innovation.
Umami is the fifth basic taste. Bitter, salty, sour and sweet are the other four. Umami is said to add “craveability” to a dish. Kokumi, on the other hand, enhances that craveability.
“We now know that kokumi is not the sixth taste,” said Aaron Andrews, associate corporate chef, Ajinomoto Health & Nutrition, Chicago. “Kokumi does not have any flavor. It is a flavor modifier. It increases the intensity of the basic tastes, as well as certain flavors, namely pungent ones, such as garlic, onion and chili peppers.”
Chicken al Pastor is on the menu again at Chipotle Mexican Grill. It is the fastest item to ever come back to Chipotle. (Source: Chipotle Mexican Grill Inc.)
Adding craveability
Craveability is the essence of many of the growing number of worldly flavors being incorporated into meat- and poultry-containing products. The National Restaurant Association’s 2024 What’s Hot Culinary Forecast has “world soups and stews” as the number-one flavor trend going forward.
Think birria, a Mexican dish from the state of Jalisco. Birria features beef, chicken, goat, lamb or mutton, which is marinated in adobo, then cooked and served in broth.
Another example is tom kha. This is a soup made with a coconut milk-based curry and featuring duck or chicken and has its origins in Thailand.
Regional Asian foods are driving a lot of innovation. While upscale ramen remains a popular dish, it is getting competition from other noodle dishes such as laksa. It, too, is prepared with coconut milk and includes spices, thick rice noodles and toppings such as chicken or shrimp.
Second and third on NRA’s trends forecast is global chicken wings and international barbecue.
“This year’s trends are dominated by consumer craving for comfort and community with a healthy side of curiosity influenced by social media,” said Hudson Riehle, senior vice president of research at NRA. “Old favorites like barbecue are taking on new flavors and social sharing is influencing the spread of regional fares like Nashville hot. Even the chicken competition is going global on local menus.”
Back by popular demand, fast-casual concept Chipotle Mexican Grill has Chicken al Pastor once again on its menus. It’s described as “a craveable protein featuring bold flavors,” which is prepared fresh daily in small batches. Chicken al Pastor is made with fresh chicken hot off the grill, a rich marinade of seared morita peppers and ground achiote, balanced with a splash of pineapple for the right amount of heat, finished with fresh lime and hand-chopped cilantro.
“About one in five transactions included Chicken al Pastor when it was featured on our menu last year,” said Chris Brandt, chief brand officer at Chipotle. “Given the performance and the fans wanting its return so enthusiastically, we are thrilled to make this the fastest item to ever come back to Chipotle.”
What starts in foodservice usually finds its way into retail. Ready-meal chicken manufacturers may want to consider adding an al pastor option. Chipotle serves it as a bowl meal with rice, black beans, tomato salsa, roasted chili-corn salsa, cheese and guacamole.
“The rich flavor of our Chicken al Pastor shines in the fan favorite bowl,” said Nevielle Panthaky, vice president of culinary. “Each ingredient layers for the perfectly balanced bite with the right level of sweetness, acidity and heat.”
It’s all about the craveability, and Carl’s Jr. is on board with its two new menu items. The Spicy Breakfast Burger features a charbroiled all-beef patty, topped with jalapeno coins, crispy bacon, an egg, pepperjack cheese, hash rounds and ketchup on a seeded bun. The Spicy Western Bacon Cheeseburger features a charbroiled angus patty, topped with jalapeno coins, two strips of bacon, melted pepperjack cheese, crispy onion rings and tangy barbecue sauce on a seeded bun.
“The [new items] mark the first product launches in our Crave campaign, focused on satiating the craveable flavors that our guests desire,” said Anthony Nguyen, vice president of brand marketing at Carl’s Jr. “The campaign brings our big, bold, unique California-inspired flavors and audacious brand personality to life, and we’re excited to see more spins on classics like this going forward.”
A&W Canada now offers the Spicy Piri-Piri Buddy Burger as an LTO. Also known as peri peri, this seasoning is based on the piri piri pepper, with the word “piri” translating to hot. With its origins in Portugal, piri piri sauce contains the namesake peppers along with citrus peel, onion, pepper, salt, lemon juice, bay leaves, paprika, pimiento, basil, oregano and tarragon.
“Our take on a spicy piri piri sauce that is zesty, spicy and addictive is designed to satisfy more of our guests’ cravings for spice and to suit their dietary preferences,” said Karan Suri, director of menu development at A&W Canada.
Heat with sweet remains a popular way to add craveability to meat and poultry. Smashburger knows that and is rolling out the Mango Habanero Crispy Chicken Sandwich. The limited-time offering features a sweet and spicy tropical-inspired sauce.
Shelf-stable baby and toddler food brand Serenity Kids is inspired by international dishes that celebrate multiculturalism and expand the palates of little ones. (Source: Serenity Kids)
Bringing it to retail
Formulators are working hard to deliver authenticity in retail packaged foods. One approach is via premium frozen foods.
Consumers in the frozen aisle are searching increasingly for global flavors, according to the first “Future of Frozen Food 2024” report from Conagra Brands Inc., Chicago. Asian-inspired products have gained a particularly strong foothold among shoppers and spicy flavors also experienced a large expansion due to their frequent inclusion in global cuisines.
“This area of global cuisine makes a lot of sense, because cooking international foods can be super intimidating and challenging,” said Bob Nolan, senior vice president of demand science at Conagra. “You may not have the ingredients in your pantry at home, and you may not have the skill. So frozen foods are a way for you to experiment with those cuisines in a safe environment where you know the food’s going to taste great and you can experience it.”
This trend toward worldly, spicier flavors signifies a notable shift in consumer preferences, according to the culinary experts at Affinity Group, Charlotte, NC. They urge industry professionals to embrace the increasing demand for spicy flavors as an opportunity for innovation and collaboration in order to foster growth in the coming year.
“Spicy foods are super trendy right now,” said Bridget McCall, vice president of culinary and innovation at Affinity Group. “We’re seeing a growing interest in exploring the complexity of heat beyond just the intensity. It’s about understanding and appreciating the nuanced flavors that different spices bring to the table.”
She emphasized that this trend underscores a broader culinary narrative where adventurous eaters are eager to explore diverse, vibrant flavors from around the globe. Balancing the heat while enhancing and diversifying flavor profiles is key to successfully navigating this trend. Understanding how to pair the fruity notes of a habanero pepper with something as rich as dark chocolate can transform a dish into an unforgettable experience.
Incorporating spicy elements into prepared meat and poultry dishes requires finesse and a deep understanding of how different spices interact with other ingredients. This is where umami and kokumi come into play.
“It’s not about adding heat for the sake of heat,” said Rebecca Gruwell, corporate chef at Affinity Group. “It’s about creating a balanced dish where the spice enhances, rather than overwhelms, the overall flavor.”
While heat and spiciness are attributes most adults crave, historically these flavor sensations have been avoided by kids’ food formulators. Even that is changing.
Shelf-stable baby and toddler food brand Serenity Kids, Austin, Texas, is launching a new range of nutrient-rich meat and vegetable pouches inspired by international culinary dishes to celebrate multiculturalism and expand the palates of little ones.
The new World Explorers line includes six varieties: Free Range Chicken Coconut Curry, Free Range Chicken Mexican Stew, Free Range Chicken Tikka Masala, Grass Fed Beef Chimichurri, Grass Fed Beef Kebab and Wild Caught Salmon Teriyaki.
“Our new World Explorers collection allows little ones to go on a global journey of flavors in a fun, nutritious and convenient way,” said Serenity Carr, co-founder and chief executive officer of Serenity Kids. “Starting solids is an exciting time for babies to explore textures and flavors. The new World Explorers line honors beloved international recipes and allows little ones to enjoy a broad range of tastes to help expand their palates during this critical flavor window time. We also believe that now it’s more important than ever to celebrate America’s multicultural heritage.”
The “flavor window” is between four and 18 months old, according to Carr. It’s when babies are developing their flavor preferences for life. Early exposure to different flavors and textures can prevent picky eating and set them up for a lifetime of healthy eating. She also believes in the power of meat as a first food for little ones, as it has higher micronutrients essential for babies’ development, is easily digestible and contains the most bioavailable fat and protein.
Guy Fieri is helping babies’ parents explore worldly flavors with his new Flavortown Sauces line. He suggests lathering these condiments on brisket sandwiches, ribs, burgers, chicken, salmon or shrimp kebabs. Varieties include Top Secret Sauce, which is a creamy aioli with “dynamite sparks of chili powder, subtle mustard and garlic,” said Fieri. The Kickin’ Chipotle Sauce brings the heat with a combination of smoky chipotle, a side kick of chili and a roundhouse of spices that builds mouthwatering heat bite after bite.
It’s all about creating craveability using authentic flavors from around the world.
ST. LOUIS — Post Holdings Inc. announced leadership changes within the company, specifically in its refrigerated retail businesses, on June 3.
Current executive vice president and chief financial officer of refrigerated retail, Mike McCoy, will step into his new role as president and chief executive officer of Post refrigerated retail on Oct. 1.
McCoy joined Post in 2018 as executive vice president and chief administrative officer when Post acquired Bob Evans Farms. Before McCoy’s tenure with the company, he was in advisory positions with Ernst & Young and also Deloitte. He began working with Post as a client and later transitioned to vice president of internal audit in 2014 for Post.
McCoy will succeed Mark Delahanty, who will transition to an advisory role on Dec. 1 and retire on May 31, 2025.
Delahanty joined Post Holdings in 2016 after the company acquired MOM Brands, where he was senior vice president, general manager. After the acquisition, he was named chief operating officer of the newly created Post Consumer Brands from 2018 to 2019. Prior to joining the company, Delahanty was with Sealy and General Mills in various marketing positions.
“Mark’s leadership has significantly contributed to Post’s success through the years, first integrating our cereal businesses and then leading our refrigerated retail business,” said Robert Vitale, president and CEO of Post. “We wish Mark well in his upcoming retirement and are excited to transition leadership of the business to Mike. Mike has grown his career through a variety of critical business areas within Post and will bring valuable leadership experience and enthusiasm to refrigerated retail.”
Additionally, Adam Gonsiorowski, current vice president of finance of Bob Evans Farms, will assume the role of chief financial officer on Oct. 1. He will report to McCoy.
Gonsiorowski joined Post as director of financial reporting in January 2014.
