In an official statement, Campbell emphasized that this sale will allow for greater concentration on its core snacks division operations. Our Home, also based in New Jersey and owner of the Popchips brand, noted that the acquisition will significantly enhance its operational scale.
According to Campbell, the Pop Secret brand generated approximately $120 million in net sales for the fiscal year 2024
Chris Foley, the president of Campbell’s snacks division, articulated the company’s vision by stating, “This marks another step in our journey to strategically focus our snacks portfolio. The sale of Pop Secret will drive greater focus and accelerated growth across our snacks division and portfolio of leading brands.”
Aaron Greenwald, founder and CEO of Our Home, expressed enthusiasm regarding the acquisition, saying, “Acquiring Pop Secret marks Our Home’s expansion into the microwave popcorn category, strengthening our status as a premier independent snacking platform. The brand’s significant MULO [multi-outlet] consumption and widespread household recognition, combined with our extensive manufacturing capabilities, create a unique platform for growth and innovation in the market.”
The transaction involved Our Home assuming the lease for a manufacturing facility situated in Las Vegas.
Furthermore, in June, Campbell, a powerhouse in soups, sauces, and snacks, known for its brands like Cape Cod, Goldfish, and Pepperidge Farm, announced its plans to divest the Noosa yogurt business. This decision came as a result of its recent acquisition of Sovos Brands.
For the fiscal year 2023, Campbell reported net sales of $9.4 billion. In a recent earnings report for the third quarter, which ended on April 28, the company upgraded its full-year sales guidance to an increase of 3-4%. This contrasted with earlier projections indicating a potential decrease of 0.5% to an increase of only 1.5%, after integrating Sovos Brands into its portfolio.
Investors and analysts are keenly awaiting Campbell’s comprehensive financial results, set to be published shortly.
According to a note from Matthew Smith, an analyst covering Campbell for the US investment bank Stifel, the Pop Secret brand represented 1% of Campbell’s total sales and 3% of the revenue generated by its snacks division. He noted, “Divesting the business is a circa 15 basis-point benefit to Campbell’s overall rate of consumption and a 30 basis-point benefit to the snacks segment. Over the coming months, we expect packaged food companies to continue actively managing their portfolios to bolster their growth outlooks through divestitures and mergers and acquisitions. We view the Pop Secret divestiture positively for Campbell, as it focuses their snacks portfolio with minimal financial impact.”
