Campbell Soup Co. to Acquire Garden Fresh Gourmet
At the beginning of June 2015, Campbell Soup Co. signed an agreement to acquire Garden Fresh Gourmet for $231 million. Garden Fresh Gourmet makes dips, salsa, hummus, and tortilla chips. The acquisition will expand the line of products sold by Campbell Soup Co. and keep the company on trend with what consumers want.
Consumers have increasingly been demanding fresh and organic foods. They want to know where there food is coming from and what agricultural methods were used during production. Additionally, consumers want high quality food that does not have preservatives, hormones, or chemicals that are potentially harmful. Garden Fresh Gourmet has been delivering on the demands of consumers since they started operations.
President and CEO pf Campbell Soup Co. Denise Morrison said, “The acquisition of Garden Fresh Gourmet is another milestone in reshaping our portfolio toward faster-growing categories, including packaged fresh and organic foods. Previously, Campbell Soup Co. had a division called, “Packaged Fresh,” but Garden Fresh Gourmet will help them take their offerings to the next level.
Packaged Fresh foods make up $19 billion in sales each year, and it is expanding rapidly. This division includes Campbell’s refrigerated soups and cold-pressed organic juice. With the acquisition of Garden Fresh Gourmet, Campbell Soup Co. wants to expand into the deli section of grocery stores to complement their presence in the produce section.
Campbell Soup Co. is going to keep the Garden Fresh brand-name label because they have quickly become a staple in many households around the U.S. Campbell Soup Co. has the capabilities to take them to the next level while strengthening their own brand in the process.
Garden Fresh Gourmet was founded in 1988. They generate $100 million in sales each year. Salsa is their fastest selling product. Campbell Soup Co. has big plans on where to take the brand.
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