Product details

The case discusses the problems of US-based global food company Campbell Soup Company (Campbell's) in its home country, the US. Despite its high popularity, the company experienced several consecutive quarters of declining sales. Campbell's tried to re-engineer its portfolio several times through a series of strategic acquisitions and investments to cater to the changing tastes and preferences of consumers, who were opting for fresh food rather than canned food. The company negotiated with competitors who focussed on healthier and fresher foods in the belief that this would give it a fresh image beyond the old-fashioned canned soup. Campbell's geared up its organic food supply chain, recalled defective products, and explored new ways of connecting with the millennials through digital strategies. But all these efforts failed to rescue the company and the situation worsened for it in the first two quarters of fiscal 2018. Campbell's posted a net loss per share and its gross margin came down in the third quarter of 2018. The company's lackluster performance was a matter of concern for investors who were uncertain about the very future of Campbell's. Its long-serving CEO, Denise Morrison (Morrison), stepped down after her bet on fresher foods failed to revive the sales of the company. Rating agency, Moody's reviewed the company's credit rating for downgrade following a sharp fall in its profitability and Morrison's decision to exit. Morrison's sudden resignation created more trouble for the company, which was already struggling to cope with changing consumer behavior. Going forward, will the new CEO be able to turn the company around?