{"id":7087,"date":"2026-06-13T08:00:30","date_gmt":"2026-06-13T08:00:30","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=7087"},"modified":"2026-06-13T08:00:30","modified_gmt":"2026-06-13T08:00:30","slug":"goldfish-maker-says-it-may-cut-some-brands-as-snack-sales-weaken","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=7087","title":{"rendered":"Goldfish maker says it may cut some brands as snack sales weaken"},"content":{"rendered":"

<\/p>\n

Snacks have completely different meanings for kids and adults. When we are small, it\u2019s something tasty that we are not allowed to have every day, making it even more delicious. As adults, it\u2019s nostalgia for those innocent times when we could find true happiness in a bag of chips.\u00a0<\/p>\n

However, the nostalgia play is becoming more challenging for the packaged goods companies as inflation fatigue and the rapid rise of appetite-suppressing GLP-1 medication affect its sales.\u00a0<\/p>\n

\u201cEarly evidence suggests that individuals using GLP-1s spend significantly less money at the grocery store, shifting their purchasing habits away from snacks, alcohol, and carbohydrates while also increasing demand for high-protein and nutrient-dense foods,\u201d according to a University of Illinois study.\u00a0<\/p>\n

In 2025, about 10 million Americans have used GLP-1 medications, and that number is estimated to reach 25 million in 2030, reported Forbes.\u00a0\u00a0<\/p>\n

More importantly, aside from shifts in weight loss and eating trends, inflation-weary consumers are reducing their spending.\u00a0<\/p>\n

Consumers are actively abandoning major name brands that got too expensive in recent years, pivoting aggressively toward cheaper store brands (private label) to protect their wallets, according to data from SNAC International.<\/p>\n

These new trends are forcing snack giants, such as the powerhouse behind Goldfish and Late July, to make some tough decisions.\u00a0<\/p>\n

Campbell\u2019s CEO hints some snacks might soon disappear\u00a0\u00a0<\/strong><\/h2>\n

The Campbell\u2019s Company <\/strong>reported on June 8 its results for its third quarter fiscal 2026 ended May 3, 2026,\u00a0disclosing net sales of $2.37 billion, representing a 4% year-over-year drop.\u00a0<\/p>\n

\u201cOur third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds,\u201d stated Campbell\u2019s CEO Mick Beekhuizen.\u00a0<\/p>\n

Salty Snacks that make up around one-third of the Snack business saw retail sales decline by 6.2%. Chips consumption dropped 4.5%, reflecting a sequential improvement, while pretzels performance stagnated.\u00a0<\/p>\n

More importantly, operating earnings dropped 32%, due to \u201clower gross profits, reflecting elevated cost inflation, other supply chain costs, and volume deleverage.\u201d\u00a0<\/p>\n

In prepared remarks, Beekhuizen noted that the company performance remains \u201cwell below expectations.\u201d\u00a0<\/p>\n

\u201cThis will involve some tough decisions, and may include rationalizing our product portfolio, reallocating and prioritizing investment for certain brands, and consolidating nodes within our network. But these are necessary actions to strengthen our core while improving the long-term growth trajectory and margin profile of this business.\u201d<\/p>\n

Beekhuizen didn\u2019t specify which brands may be affected, but he offered insights into the results and what the company\u2019s next moves are.\u00a0<\/p>\n

\n

Campbell\u2019s CEO hints that some snacks may soon disappear.<\/p>\n

Morris&sol;Bloomberg via Getty Images<\/p>\n<\/figcaption><\/figure>\n

Campbell’s plans new prices and snack sizes<\/strong><\/h2>\n

The CEO further explained that even though snacks’ overall performance needs to improve, the company has already made progress. For example, Goldfish crackers with real cheese, no artificial flavors and zero trans fat, showed stable sales for the second quarter in a row as the company promoted the product to families with children.\u00a0<\/p>\n

Goldfish sales may reduce pressure on the brand compared with weaker-performing snack categories.<\/p>\n

So, what is Campbell’s planning to do?\u00a0<\/p>\n

Beekhuizen added that it sees the most opportunity in its salty snacks portfolio. \u201cTo reignite growth, our salty brands need to strengthen their core with bigger and bolder ideas that are sustainably supported by higher levels of marketing. We need the right pack-sizes at the right price points to win, with consumer-led innovation differentiated from competition.\u201d\u00a0<\/p>\n

The CEO stressed plans to \u201ctighten our assortment, sharpen price-pack architecture,\u201d noting that these initiatives are in the company\u2019s control and already underway.\u00a0<\/p>\n

\u201cThis process will take some time, but we are committed to turning around this business,\u201d Beekhuizen said.\u00a0<\/p>\n

Campbell\u2019s market-leading brands:\u00a0<\/strong><\/h3>\n
    \n
  • Campbell\u2019s<\/strong><\/li>\n
  • Cape Cod<\/strong><\/li>\n
  • Chunky<\/strong><\/li>\n
  • Goldfish<\/strong><\/li>\n
  • Kettle Brand<\/strong><\/li>\n
  • Lance<\/strong><\/li>\n
  • Late July<\/strong><\/li>\n
  • Pace<\/strong><\/li>\n
  • Pacific Foods<\/strong><\/li>\n
  • Pepperidge Farm<\/strong><\/li>\n
  • Prego<\/strong><\/li>\n
  • Rao\u2019s<\/strong><\/li>\n
  • Snack Factory<\/strong><\/li>\n
  • Snyder\u2019s of Hanover<\/strong><\/li>\n
  • Swanson<\/strong><\/li>\n
  • V8\u00a0<\/strong>
    \nSource: Campbell’s\n<\/li>\n<\/ul>\n

    Consumer spending trends support Campbell’s strategy\u00a0<\/strong><\/h2>\n

    The company\u2019s results and transformation plan align with the broader industry shifts. In fact, Circana\u2019s recent report confirmed that \u201cvalue-conscious consumers are not indiscriminately trading down as much as they are being intentional about their purchases by opting for smaller packs, variety packs, and lower entry points.\u201d\u00a0<\/p>\n

    Moreover, American consumers have expressed concern about the cost of living.\u00a0<\/p>\n

    Related: Target offers big new sale for loyal customers<\/strong><\/p>\n

    \u201cRising prices remained the most frequently cited concern, increasing by six percentage points from the previous quarter to 52 percent of consumers, while concerns about the ability to make ends meet also rose,\u201d reveals McKinsey & Company\u2019s consumer sentiment report.\u00a0<\/p>\n

    Deloitte\u2019s 2026 Retail Industry Global Outlook also recently confirmed that consumer trading down trends are here to stay, further rationalizing Campbell’s new strategy.\u00a0<\/p>\n

    \u201cNearly seven in 10 retail executives surveyed agree that behaviors such as trading down, shopping value channels, or swapping convenience for savings represent a structural change, not a temporary response to inflation,\u201d revealed Deloitte.\u00a0<\/p>\n

    Campbell\u2019s is not the only company adjusting to current consumer habits. \u201cA handful of companies, including PepsiCo, General Mills and J.M. Smucker, have found success in luring consumers back after rolling back prices for some products,\u201d writes Food Dive.\u00a0<\/p>\n

    Analysts react to Campbell\u2019s results and new strategy\u00a0<\/strong><\/h2>\n

    A number of analysts have looked at the big-picture risk, downgrading Campbell\u2019s financial outlook.\u00a0<\/p>\n

    In March 2026, S&P Global Ratings revised its outlook on Campbell’s to negative on lower earnings guidance. \u201cThe negative outlook reflects ongoing performance challenges, particularly in the company\u2019s snacks business that we believe will persist for at least the next 12 months.\u201d\u00a0<\/p>\n

    While S&P Global Ratings project the challenges to persist for a while, Erin Lash, senior director of consumer equity research at Morningstar, said in a research note that Campbell\u2019s \u201cis taking the right steps to restore growth\u201d in snacking, reported Food Dive.\u00a0<\/p>\n

    Related: Outdoor retail giant closes 59 stores in Chapter 11 bankruptcy<\/strong><\/p>\n

    #Goldfish #maker #cut #brands #snack #sales #weaken<\/p>\n","protected":false},"excerpt":{"rendered":"

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