Campbell Soup, the American Soup Maker: Will the Restructuring Pay-off?


Code : COS0108

Year :
2010 - 2013

Industry : Processed Food

Region : United States

Teaching Note: Available

Structured Assignment : Not Available

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Abstract: Campbell Soup Company (Campbell) had become the world’s largest producer of soup with a 60% market share in the $4 billion soup market by 2010. In the same year, it occupied tenth place in the Fortune 500 listing of global food processing companies. However, it suffered inconsistent growth during 2006-2010. It was faced with legal notices from health activists and found itself losing its identity among the younger generation. Denise Morrison (Morrison), who took over as CEO in August 2011, undertook a nine-month review of the situation, and came up with some measures for the revitalization of the company to increase its share in the US and the global ready to eat food market. The restructuring initiatives were aimed at expanding into international markets and new food categories, while strengthening the company’s position in existing markets and its core offerings.

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Pedagogical Objectives:
This case is designed to enable students:

  • Understand the food processing industry in the US.
  • Discuss the problems facing the Campbell Soup Company.
  • Evaluate and discuss weather restructuring strategy would yield results.
  • Debate the alternate strategies that could be adopted to ensure steady growth for the company.

    Keywords :Food Processing Industry, Campbell Soup Company, Restructuring Strategy , Denise Morrison, Declining sales, Financial Crisis and Processed , Food Industry, Salt and Sodium Levels in Soups, Wellness Foods, Brand Identity, Advertising Controversies

    Contents :
    » US Food Industry Scenario
    » Campbell Soup Company
    » Sales Slump
    » Salt Crisis
    » Identity Crisis
    » Strategies of the New CEO

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