CAMDEN, NJ. — The Campbell’s Co.’s Snacks business unit continues to be challenged as old competitors and new entrants to the market vie for market share. During the first quarter of fiscal 2025, Snacks business unit organic sales fell 2% due to declines from Pepperidge Farm cookies, Goldfish crackers, Late July snacks and a planned reduction in sales to partner and contract brands. Management is hopeful for better results as fiscal 2025 progresses.

“… We saw overall snacking categories beginning to recover as expected,” said Mark Clouse, president and chief executive officer, during a Dec. 4 conference call to discuss first-quarter results. “We held or grew share in several areas with solid performance in our crackers, fresh bakery and deli snack segments while navigating a more competitive environment in the salty snack segment and cookies.”

Specifically, Clouse said “new entrants” are competing with Campbell’s for market share in kettle, pretzels and tortilla chips while private label is pressuring the company’s cookie business.

“We have fully integrated plans in Q2 that include innovation, marketing and some increases in appropriate promotion to remain competitive and defend in key core segments,” he said.

As a result, Snacks segment sales fell to $1.07 billion during the quarter from $1.11 billion during the same period the year before. Unit operating earnings fell 12% during the quarter to $142 million.

Faring much better during the quarter was Campbell’s Meals & Beverages unit that saw sales rise 22% to $1.71 billion from $1.4 billion the year before. Underpinning Meals & Beverages growth were benefits from the company’s acquisition of Sovos Brands earlier in 2024. Organic sales were flat during the quarter.

Operating earnings in the Meals & Beverages unit during the quarter rose 17% to $337 million from $287 million the year before.

Clouse said the Rao’s brand is exceeding expectations and that the Swanson broth brand continued to benefit from increased category usage and “private label service challenges.”

“Private label (broth) is recovering, and we expect modest share headwinds in the second quarter with that increasing in the second half of the fiscal year as private label fully recovers,” he said.

The Campbell’s Co. net income for the quarter ended Oct. 27 was $218 million, equal to 72¢ per share on the common stock, and down 7% when compared with the first quarter of fiscal 2024, when the company earned $234 million, equal to 78¢ per share.

Quarterly sales rose 10% to $2.77 billion from $2.52 billion the year before.

The company reaffirmed its fiscal 2025 guidance, which reflects the expectation of steady progress and incorporates an appropriate amount of pragmatism, Clouse said.