The Campbell’s Co. is not immune to the slowdown in snacking fueled by cost- and health-conscious consumers that has hit most major players, but it is generating “green shoots” with premium products, targeted innovation and limited-time offerings that deliver “worth-it” experiences consumers crave.
The maker of Goldfish crackers, Pepperidge Farm cookies, Late July chips and other snacks, reported yesterday a 1% decline in organic net sales of snacks, driven by a 3% decline in volume, which was only partially offset by price increases in the first quarter of fiscal 2026 ending Nov. 2.
The drop-off is in line with those of competitors, including PepsiCo, which saw snack volumes for Frito-Lay and Quaker Foods fall 1% in the second quarter of 2025 and Mondelēz, which reported in May a 1% dip in volume and mix for its biscuits and baked snack segment in the first quarter of fiscal 2025.
Mondelēz CEO Dirk Van de Put attributed the declines in snacking across the board in part to “overall global macroeconomic uncertainty” that is pushing cost-conscious consumers to prioritize essentials and trade down or out of snacking.
At the same time, some analysts predict the use of GLP-1 medications for weight management will continue to ramp up into 2026, which could take a toll on snacks – especially indulgent options and commodity categories that prioritize high volume and low price. For example, softness in Campbell’s Snyder’s of Hanover dragged down overall share and consumption, despite a strong performance by the company’s more premium Snack Factory franchise.
Campbell’s holds share despite no relief in sight for snacking slowdown
While Campbell’s CEO Mick Beekhuizen acknowledged pressure on snacking likely will not ease within the next few months, he is optimistic about the business’ category performance – calling out that it grew or held share in four out of eight of its snack “leadership brands.”
He said this achievement reflects the company’s ability to stay close to consumers’ evolving needs through brand activations, innovation and strategic omni-channel execution.
“Consumers are still snacking, but how people are snacking is evolving. We are maintaining our solid share position within snacking, as consumers choose snacks that meet their needs with premiumization, flavor exploration and health and wellness,” he said.
Better-for-you options are better for sales
One way Campbell’s is holding share and stemming sales losses in snacks is by innovating and renovating brands that meet consumer demand for better-for-you options.
“Consumer preferences continue to evolve to health and wellness and the desire for worth-it experiences,” and Campbell’s is “taking steps to improve the health and wellness benefits of our snacks leadership brands, for example, by providing consumers with avocado oil in our chips portfolio,” Beekhuizen said.
The mixed performance of the company’s chip selection underscores the importance consumers are placing on healthier options. The company’s more indulgent Cape Cod brand lost share against the broader potato chip category, but “sequential improvement” in the company’s better-for-you Late July brand helped Campbell’s salty portfolio hold share with relatively flat consumption.
This dovetails with consumer interest in premium or differentiated products, he added, noting that “consumers are more selective in their purchases of fresh bread,” but the company’s latest innovation under the Farmhouse brand – Thin Sliced – “is outpacing sandwich segment trends, delivering strong repeat rates, reflecting consumer demand for healthy products without compromising on taste,” Beekhuizen said.
Flavor innovation and LTOs make snacks ‘worth it’ to consumers
Campbell’s also drove snack sales through flavor innovation and a flurry of limited time offerings and seasonal products. This strategy was particularly effective within indulgent products where health-conscious consumers might need more reason to consider a product “worth it.”
For example, the company’s Pepperidge Farm fresh bakery and cookie business held share thanks in part to “stand-out performance in cookies, where we outperformed the category and gained share in both dollars and volume through successful innovation launches, including fall LTOs like Pepperidge Farm Milano Pumpkin Spice, Milano Chai Latte and Soft-Baked Pumpkin Cheesecake,” Beekhuizen said.
Flavor innovation also helped bolster the company’s salty portfolio. For example, Campbell’s Pumpkin Spice LTO “was a great driver of growth for Snack Factory in the quarter,” said Beekhuizen, who added he is “excited about the White Peppermint LTO that is on the shelves now, in time for the holiday season.”
Other seasonal flavor innovations include White Crème and Peppermint Snack Factory pretzel crisps, Snyder’s of Hanover holiday cabin kits and Brown Sugar Vanilla tortilla chips from Late July, which Beekhuizen said “capture heightened seasonal demand, while maintaining a sharp focus on execution and in-store displays.”
Marketing for key moments
Strategic merchandizing also helped the company drive sales of snacks, including its Goldfish cracker brand, which has struggled recently.
“Getting Goldfish back to growth is absolutely critical,” and “when I look at Q1, we made some progress” with merchandizing and promotions, Beekhuizen said.
During the back-to-school season, the company launched a multipack campaign with Goldfish that “was quite good and encouraging,” and underscored the importance of price pack architecture in the current economic environment, he said.
“There are definitely some green shoots throughout,” he added.
