Campbell’s brought in net income of nearly $96 million USD in Q4, a big drop from the $288 million USD it earned in the same quarter last year.

This is despite revenue of $1.99 billion USD in the period topping analyst forecasts and moving up from $1.87 billion in the same period last year.

For the full year, the company reported profit of $757 million and revenue as $8.56 billion. Adjusted marketing and selling expenses were up 3% compared with last year, but spend as a percentage of sales was lower.

President and CEO Mark Clouse says demand for its portfolio of brands remains “elevated” in a “dramatic” inflation environment. Fourth quarter consumption, the company says, was up 8% for the period and 4% for the full year, and 14% vs pre-pandemic.

Meals and Beverages

The company’s meals and beverage segment grew by 7%, the company says. Campbell’s Soup and Campbell’s Chunky gained one point of market share each compared with pre-pandemic levels.

Shelf stable meals grew strongly, outperforming refrigerated and frozen meals, particularly among younger households. Campbell says it differentiating its Swanson brand by modernizing packaging and improving ingredients.

Boomers, more sensitive to price, are trading down on soups, but that’s being offset by millennial brand loyalty.

Condensed soup is also driving success. On a three year basis, the category is up six points in dollar share. Broth, however, is seeing more private label pressure, though it will soon launch Quick Cups, a one-cup serving of broth to fit recipe usage occasions with a smaller and more convenient format.

Clouse says Campbell’s Chunky “continues to be a star,” with consumption up 20.3% versus the prior year. It’s added one million buyers, helped by “revitalizing the brand for new generations of consumers” through efforts like broadening its EA Madden and NFL relationships.

He adds that innovation is fueling its soup strategy. It’s targeting better-for-you produts to add variety, such as through its portfolio of organic soups and plant based chilis. The company is also expanding Chunky spicy, informed by robust preferences for spicier and more flavourful offerings.

Sauces

For sauces, easier “quick scratch” cooking is increasing in relevance. The Prego brand is the number one share leader in Italian for the 39th consecutive month, the company says.

Repeat rates were up four points compared with pre-pandemic. Campbell’s will be expanding the sauce lineup the meet consumers seeking elevated flavours as they cook more at home.

Campbell’s is also launching concentrated sauces and relaunching cooking sauces to tap into dinner variety. It will come to market with focused retail partnerships, Clouse says, and wants to achieve a $1 billion dollar sauce portfolio.

Snacks

Organic net sales were up 6% in snacking, driven by “power brands” like Kettle Chips and Goldfish.

Increase marketing support helping to drive positive results. Kettle Chips earned three points of market share compared with pre-pandemic levels.

The company is working hard to balance price and promotion, Clouse says. Goldfish is delivering “exceptional” results thanks to its marketing and LTO strategies, while collaborations with Frank’s RedHot have driven incremental sales of 60%.

“We’re engaging consumers in a unique way,” Clouse says, with strong partnerships and “world class marketing.”