New Acquisitions, Expanded Offering Signal a Shift in the Market
The natural and organic food movement is far beyond a trend at this point. Sales of organics have quintupled in the last decade and more and more conventional retailers are jumping onto the organics bandwagon. This means that consumers have more options and prices are becoming more reasonable. Whether you are die-hard into organics, experimenting with different products, or just looking for a good deal on food, recent developments in this sector are quite promising. In fact, both Campbell Soup Co. and ShopRite recently announced major shifts in their own offerings to meet this demand. Let’s take a look at what consumers can expect from these two popular names in the coming months.
Campbell Soup Acquires Pacific Foods
Just one week ago, Campbell Soup Co. announced their $700 million buyout of Pacific Foods. An industry leader who specializes in soups and broths, Pacific Foods’ brand aligns well with existing Campbell products. It also is firmly rooted in the company’s current retail plan, which is highly focused on reaching new markets, particularly millennials. CEO Denise Morrison explained and foreshadowed this move at the Fortune Global Forum back in 2015. She emphasized that despite Campbell’s loyal followers, looking to the future is important, and:
“It’s much more fun to lead change than be a victim of change”
In that vein, Campbell plans to absorb Pacific Foods into its America’s Simple Meals and Beverages division. Placed alongside brands such as V8 and Plum Organics, this move classifies Pacific with other health-oriented products. The plan is to face Campbell’s scalability with Pacific’s commitment to simple organic ingredients. Similarly, Pacific CEO, Chuck Eggert, plans to stay on with Campbell to work with/as a supplier for Pacific products.
ShopRite’s Push Towards Local
Most loyal ShopRite shoppers know that their line of local products, especially in the summer months, is quite extensive. At my local store, signs proudly proclaim the origin of corn, apples, blueberries, cucumbers, and more. However, similar to Campbell’s efforts to reach new markets, ShopRite has recently identified a new local offering that they intend to expand: meats.
Many of you may have noticed the new Farm Promise line of meats at ShopRite over the past few months. This summer, they officially unveiled this line as an effort to offer natural local meats for their consumers. Take a look at the video below for details:
Meeting the Needs of Modern Organic Consumers
In its press release last week, Campbell aligned its own mission with industry pioneer Pacific Foods by saying:
Its products and approach are very closely aligned with Campbell’s real food philosophy. Pacific Foods will help accelerate Campbell’s efforts to deliver real food and beverages that meet consumers’ changing tastes and preferences. The acquisition will also further Campbell’s efforts to drive innovation in health and well-being
Like many conventional brands, Campbell has undergone a distinct effort to “reinvent the center store.” They have responded to the now-common cry of health advocates to “shop the perimeter” instead. Likewise, ShopRite’s efforts to expand their perimeter offerings (i.e. meat) signal shift along all axes of the traditional supermarket. Conscious consumers are driving market choices in ways we never could have imagined even a decade ago.
This doesn’t mean everything will change. Even ShopRite affirms that it will “continue to provide a wide selection and variety of meat,” including conventionally-raised meats. Instead, the acknowledgement that anything else is preferable and can/should be available outside of specialty stores is significant.