Campbell Expands into Italian Food Market with Acquisition of Sovos Brands
New York – Campbell, the iconic canned soup company, announced on Monday that it will be expanding its reach in the Italian food market through the acquisition of Sovos Brands. The deal, worth $2.7 billion, will include popular Italian food brands like Rao’s sauces and Michael Angelo’s frozen entrees, as well as noosa yogurt.
Campbell’s president and CEO, Mark Clouse, expressed his excitement about the acquisition, stating, “We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio.” Clouse believes that the addition of Sovos Brands will strengthen and diversify Campbell’s Meals & Beverages division, making the company one of the most dependable and growth-oriented names in the food industry.
While Campbell’s Meals & Beverages division already includes its trademark soups, SpaghettiO’s, juice brand V8, and Prego sauces, Rao’s sauces attract a different consumer set. According to the company, Rao’s is the premium, market-leading sauce that complements Campbell’s core portfolio by providing an opportunity for expansion into adjacent categories like frozen meals, dry pasta, and premium ready-to-serve soups.
Furthermore, the acquisition of Michael Angelo’s frozen meal brand will also enhance Campbell’s frozen food portfolio under its Pepperidge Farm’s brand. However, the popular yogurt brand noosa is not considered core to Campbell’s strategy. The company sees noosa as a well-run business with great products and strong profitability and will evaluate strategic alternatives for its future.
Sovos Brands founder and head, Todd Lachman, described the acquisition as a “momentous occasion”. He believes that the transaction will create substantial value for shareholders, resulting in a 92% increase from the 2021 IPO price.
Following the announcement, shares of Campbell closed at $44.34 on Monday, representing a 1.79% decrease.
With this strategic acquisition, Campbell is positioning itself for growth in the Italian food market by expanding its brand portfolio and diversifying its offerings.