Campbell Soup considers taking Rao’s to Canada

Camden-based Campbell Soup has ideas on how to accelerate Rao’s path to becoming a USD 1 billion brand, said Mark A. Clouse, president and chief executive officer, March 12 at the Bank of America Consumer and Retail Conference in Miami.
“I think what is so impactful or powerful about the more recent trends on Rao’s is that you see (the brand) growing on both fronts,” Clouse said. “So you see distribution runway still being an opportunity, and you still see household penetration, which manifests as velocity increases, among other things.”
 
 Campbell Soup may increase Rao’s presence in Canada. “By the way, it doesn’t really go north of the border yet,” Clouse said, adding premium items in certain categories often integrate well into Canada. “So there’s a great opportunity there, geography as well,” he said. “We’ve got a super footprint there, a really good team in Canada. So there’s a variety of options that we’ve got, I think, for continued expansion.”

Clouse expressed caution on the idea of combining Rao’s and its sauces and Campbell’s Prego brand in some way. “My experience has been that you kind of can’t help but migrate to the shiny new object, and the unintended consequence of that can be a little bit of a distraction on the base business,” he said.

The Noosa yogurt brand also came with the Sovos acquisition. “I continue to feel like as much as I like the product, I’m not sure yogurt long term is a core category for us, but what I will say is that the confidence that I have in the business affords us optionality and the ability to be patient and make sure that we find the right answer to that question,” Clouse said. “So for all intents and purposes for now, it’s business as usual.”
 
The company also recently announced that it debuted its first-ever limited-edition condensed soup flavor: tomato soup that has been “infused with the flavors of a grilled cheese sandwich.” The soup can be prepared with water for a stronger tomato flavor or with milk for a cheesier flavor, according to the company.

“Grilled cheese and tomato soup has always been perfect together,” said Gary Mazur, vice president of soup and broth at Campbell’s Meals and Beverages division. “It is a classic pairing for all generations, and it has drawn increasing fandom in recent years.”

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To access the Campbell’s press release, click here.

Sources: campbellsoupcompany.com, foodbusinessnews.net