Campbell's snack business feels pinch as consumers tighten budgets
Campbell’s reported a mixed performance in its fiscal third quarter of 2025, with its snack division experiencing a notable decline amid shifting consumer behaviors, possibly due to price sensitivity driven by concerns over tariffs and inflation.
The Snacks division, with brands such as Goldfish crackers and Snyder’s of Hanover pretzels, experienced an 8% decline in net sales, with organic sales down 5%. This downturn reflects a broader trend of consumers becoming more selective in their snack purchases amid economic uncertainty. CEO Mick Beekhuizen acknowledged the mixed performance: “Within Snacks, performance was mixed across the portfolio, and while we’re benefiting from some strong innovation launches, we are adjusting our plans to make sure we’re competitive across our full brand portfolio."
In contrast to the snack segment’s performance, the Meals & Beverages division reported a 15% increase in revenue, reaching $1.46 billion. This growth is attributed to a resurgence in home cooking, with consumers turning to Campbell’s products such as condensed soups and broths.
In response to the challenges in the snack segment, Campbell’s is focusing on innovation and strategic adjustments to revitalize its snack offerings.
