Campbell's Will Selectively Raise Prices to Offset Ongoing Commodity Inflation
Dow Jones
Sep 04
1210 ET - Higher costs pressured Campbell's profitability last year, CEO Mick Beekhuizen says on a call with analysts. Those pressures are expected to accelerate over the coming year, he adds. As a result, the soup-and-snacks maker says it will selectively implement commodity-driven pricing actions, while continuing to lower prices in other areas. CFO Todd Cunfer says Campbell's pricing strategy has already been communicated to its retail partners. "While volumes may be pressured in the near-term, these were necessary decisions to protect our margins and preserve our ability to invest in our brands," he says. Shares tumble 10% after the company guides for net sales to decline 2% to 4% in the coming year.
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