Campbell Soup completes $6bn Snyder's-Lance deal and creates new snack division
Campbell Soup Co. has completed its $6bn acquisition of Snyder’s-Lance Inc. in a move that will shift the US company’s focus away from the long-struggling business to the fast-growing $89bn snacking category.
Under the deal, Snyder’s-Lance’s array of popular snack brands such as Pop Secret, Kettle, Cape Cod and Emerald will now be under the Campbell Soup Co. umbrella, in what has been the company’s largest-ever acquisition in its 149-year history.
The US-based firm has also created a new snacks division which will combine the operations and brands of its newly acquired snacks company and Pepperidge Farm.
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Campbell's former president of US Biscuits and Snacks, Carlos Abrams-Rivera, will head up the firm’s newly created division Campbell Snacks.
Better known for its canned soups and processed food, Campbell estimates that the new division will generate around $10bn in net sales annually.
“We carefully selected leaders from Campbell and Snyder’s-Lance to form the Campbell Snacks leadership team based on their expertise and understanding of how to leverage both businesses to support overall growth and profitability across the enterprise,” said Abrams-Rivera.
“The Campbell Snacks team will focus on optimising the value of our US snacks business to deepen our partnership with customers through the power of the combined portfolio.”
The deal marks Campbell Soup’s push towards other markets amid declining soup sales. In the firm’s last quarter, soup sales dropped by 7%.
“We’re no longer just a canned soup company,” added Campbell CEO and President Denise Morrison, in a recent meeting of consumer analysts. “Snacking is a big deal."
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