The Campbell’s Co. is doubling down on digital initiatives, data-driven execution, and ecommerce expansion to keep its brands competitive as consumers tighten spending and tariffs threaten to drag on profits in fiscal 2026.
The food maker recently rebranded from Campbell Soup Company. It also recently reported fourth-quarter results that came in slightly better than expected but signaled slower momentum heading into the new fiscal year.
For its fiscal Q4, which ended in July, Campbell’s reported sales edged up 1%. However, underlying sales slipped 3% after accounting for the timing of shipments that had boosted the third quarter.
Looking ahead, Campbell’s expects profit to fall 12% to 18% in fiscal 2026, with adjusted earnings per share landing between $2.40 and $2.55. Management said tariffs on steel, aluminum, and imports under the International Emergency Economic Powers Act will add about 4% to product costs next year.
CEO Mick Beekhuizen said Campbell’s has a clear strategy to offset that pressure.
“We’re continuing to invest in digital transformation to boost agility, efficiency, and effectiveness,” he told investors. “By focusing on data, insights, and disciplined execution, we’re building stronger connections with consumers and strengthening our foundation for growth.”
Campbell’s ecommerce investments
Campbell’s highlighted how its digital investments are filtering into day-to-day operations. Its Sovos integration included a rollout of the company’s updated enterprise resource planning system, giving Campbell’s more visibility into demand, shipments, and inventory. Executives said this integration helps the company better align supply chain and marketing decisions in real time.
Online sales are also playing a bigger role in innovation. Beekhuizen pointed to the launch of new flavors of Pacific’s bone broths, including a ginger, turmeric, and black pepper blend, which debuted first through ecommerce channels before moving into stores.
“In ecommerce channels, we expanded our Pacific-flavored bone broth offerings,” he said.
He described it as an example of testing innovation with digital shoppers who are often early adopters of health-focused products.
Digital engagement is also shaping product development. Campbell’s said insights drawn from social media, search data, and retail media platforms informed the decision to launch Swanson’s first-ever ramen broth, targeting at-home cooks looking for simple ways to prepare global dishes.
Meanwhile, the company is leaning harder on retail media networks and other forms of digital advertising to reach younger, digitally native consumers. Ad spending grew in 2025 and will increase again in 2026 to between 9% and 10% of sales.
Campbell’s 2025 and 2026 outlook
The company’s Meals & Beverages segment continued to benefit from more at-home cooking, with sauces and soups leading the way. Italian sauces grew 4% in the quarter, with Rao’s returning to high single-digit growth and gaining 1.2 share points.
“Rao’s … will soon become our fourth billion-dollar brand,” Beekhuizen said.
In snacks, the company is investing in digital campaigns and limited-time online exclusives to spark renewed interest in Goldfish crackers. Its Milano White Chocolate cookies boosted Pepperidge Farm’s cookie sales, even as the overall cookie category slipped. Cape Cod, Kettle Brand, and Late July all gained share within broader chip categories, a performance Campbell’s plans to highlight more directly by changing how it reports category comparisons starting in fiscal 2026.
Chief financial officer Carrie Anderson said Campbell’s expects tariffs to remain in place through 2026, but stressed the company is prepared.
“We expect to mitigate about 60% of this impact through continued inventory management, supplier collaboration, alternative sourcing, and productivity gains,” she said.
The company raised its cost-savings goal to $375 million by 2028 under its peak program. It’s focusing on optimizing its manufacturing and distribution network, streamlining indirect spending, and embedding more technology across the business.
Despite the tariff hit, Beekhuizen said the company’s digital and brand investments put it in a strong position.
“We’re driving change to deliver growth,” he said. “Our focus on execution and the actions we’re taking to strengthen our foundation will lead to sustainable profitable growth.”
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.
FavoriteThe post Campbell’s pushes digital upgrades as tariffs cloud 2026 outlook appeared first on Digital Commerce 360.
from Digital Commerce 360 https://ift.tt/eViQKl7
0 Comments