Campbell’s Soup, a beloved American brand that has been around for nearly two centuries, is facing potential closure. The company has been struggling as more consumers move away from processed foods towards natural options. In an attempt to diversify, Campbell’s acquired other companies, but this move backfired, leaving the company with a staggering $9 billion debt.
A dispute between the Dorrance family, who own 40% of the shares, and hedge fund manager Daniel Loeb of Third Point, which owns about 7% of Campbell’s stocks, has further complicated the situation. Loeb has been urging Campbell’s to make significant changes, including rebranding and abandoning the iconic red and white cans. When the family refused, Loeb filed a lawsuit against the company for mismanagement.
In response, Campbell’s criticized Loeb as “unoriginal and uninformed.” However, in a recent development, the two sides reached an agreement to hire two of the suggested directors from Third Point onto the board. This signals the possibility of more changes to come for Campbell’s in an effort to ensure its survival.
The potential closure of Campbell’s Soup is a significant blow to the brand’s loyal consumers and marks a larger trend of consumers moving away from processed foods. The company will need to adapt and make substantial changes to its business model if it wants to stay afloat in the changing market.