Campbell’s finalizes $700M deal for Pacific Foods

By Lynda Cohen
Camden | Dec 13, 2017 at 11:50 am

Campbell Soup Co. has completed its $700 million cash purchase of Pacific Foods of Oregon.

Pacific Foods produces organic broth and soup, along with shelf-stable plant-based beverages and other meals and sides.

Pacific Foods’ offerings will join Campbell’s portfolio of organic foods, which is in the Top 10 in the industry, according to a release.

Campbell expects Pacific Foods will contribute about $100 million in net sales in fiscal 2018.

“Pacific Foods is an excellent strategic fit with Campbell’s health and well-being portfolio, with its strong position in the faster-growing natural and organic category,” said Campbell’s CEO and President Denise Morrison. “We are thrilled to add such a powerful and respected organic brand to our company and intend to leverage our expertise and resources to build on Pacific’s track record of sales growth.”

Organic food is an $11 billion category in the country, growing at a compound annual rate of 15.7 percent over the past four years.

Pacific Foods will be part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the United States and Canada.

“Pacific is an authentic brand with a real food philosophy that closely mirrors our own,” said Mark Alexander, president of the Americas division. “We deeply respect what Pacific has built, and our aim is to help Pacific to accelerate growth while continuing its purpose-driven mission: to make nourishing foods with simple, organic ingredients.”

Joe Folds will be vice president and general manager of Pacific Foods. He has led Campbell’s businesses and brands since joining the company in 1997.

Campbell expects to expand distribution; boost marketing support for brand building; and invest in research and development and the supply chain to deliver operations and customer service excellence. Campbell will immediately begin to integrate Pacific Foods’ key functions.

Pacific Foods has more than 500 employees. Its plant will continue to operate out of Tualatin, Oregon.

Lynda Cohen | lcohen@roi-nj.com | LyndaCohen