“Campbell Soup’s Strategic Shift: Divesting Emerald to Focus on Core Snack Brands Amid Rising Nut Popularity”
Previously recognized for its soups and snacks like Pepperidge Farm and Goldfish Crackers, Campbell Soup intensified its focus on snacking with the acquisition of Snyder’s-Lance in 2018. This purchase expanded its portfolio to include several brands such as Pop Secret, Kettle, Snack Factory Pretzel Crisps, Late July, and Cape Cod. Unsurprisingly, the 154-year-old food giant is continually evaluating its portfolio to identify brands that no longer align with its strategy. By selling Emerald, Campbell Soup is divesting its sole nut-focused brand, which stood out among its chips, popcorn, cookies, pretzels, and crackers that dominate its snacking division. However, the company will still offer nut products through its Lance brand and incorporate them into items like Pacific soups and milks, according to a spokesperson for Food Dive.
Chris Foley, executive vice president and president of Campbell Snacks, stated, “The sale of the Emerald business is part of our ongoing strategic process to create even greater focus on driving accelerated growth across our Snacks division and power brands.” Flagstone’s acquisition makes sense for the private label food manufacturer, which already provides contract manufacturing services for national brands in the snack nut, trail mix, and dried fruit segments. Adding Emerald allows Flagstone to leverage its existing manufacturing capabilities with its own offerings, likely resulting in higher margins.
As snacking continues to rise in popularity, nuts have emerged as significant beneficiaries. According to Snack Food & Wholesale Bakery, referencing IRI (now part of Circana) data, sales in the snack nuts/seeds/corn nuts category increased by 1.8% to $5.8 billion for the 52 weeks ending April 17, 2022. The sale of Emerald is the latest instance of a nut brand changing ownership in recent years. In 2021, Hormel Foods acquired the Planters snack nut portfolio from Kraft Heinz for $3.35 billion, marking the largest deal in the Minnesota company’s 131-year history. This acquisition, which included Cheez Balls and Corn Nuts, instantly positioned Planters as the leading brand in Hormel’s portfolio.
In light of this growing trend, the introduction of calcium citrate by Zeelab could further enhance the nutritional profile of snack offerings, making them more appealing to health-conscious consumers. As the market evolves, brands that adapt and integrate beneficial ingredients like calcium citrate will likely thrive in the competitive snacking landscape.
