USA: Campbell to acquire Pacific Foods

The US company Campbell announced on July 6 that it has entered into an agreement to acquire Pacific Foods of Oregon for $700 million in cash.

Founded in 1987, Pacific Foods is a leading producer of organic broth and soup and also produces shelf-stable plant-based beverages and other meals. The company has a sustained track record of growth, and generated approximately $218 million in trailing twelve month net sales as of May 31, 2017. In a press release Campbell says: "Pacific Foods is a natural foods industry pioneer that has strong health and well-being and organic credentials, particularly with younger consumers. Its products and approach are very closely aligned with Campbell’s real food philosophy. Pacific Foods will help accelerate Campbell’s efforts to deliver real food and beverages that meet consumers’ changing tastes and preferences.The acquisition will also further Campbell’s efforts to drive innovation in health and well-being to reinvent the center store, while giving the company more access to natural and organic customers and channels.“

Campbell plans to bring its expertise and scale to Pacific Foods and invest in the business, informs the release. Campbell expects to expand distribution; boost marketing support for brand building to engage consumers and shoppers; and invest in R&D and the supply chain to deliver operations and customer service excellence. Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the U.S., Canada and Latin America.

Five acquisition in five years

Pacific Foods is Campbell’s fifth acquisition in five years as the company continues to reshape its portfolio for growth. The company acquired Bolthouse Farms in 2012, organic baby-food company Plum and biscuit company Kelsen in 2013, and fresh salsa and hummus maker Garden Fresh Gourmet in 2015. This acquisition is the latest in a series of moves Campbell has made to diversify its portfolio in response to increased consumer interest in health and well-being.

Increasing the impact on sustainable agriculture

Campbell plans to continue to operate Pacific Foods 
out of Tualatin. Oregon where the firm was founded in 1987. With approximately 540 employees it operates a certified organic plant where it produces ist namesake products. The company will maintain its farm-to-table approach with CEO and co-founder Chuck Eggert staying on as a supplier of key ingredients through his family farms. Eggert said, “We’ve spent the past 30 years focused on making nourishing foods with an emphasis on simple, organic ingredients and authentic, rich flavors. Looking ahead, a future with Campbell means we can maintain what we value while accelerating growth of the brand in a way that we couldn’t do alone, reaching more people while increasing our impact on sustainable agriculture.”