Campbell Soup Co. Buys Bolthouse Farms for $1.55 Billion

Jul 09, 2012

Campbell Soup Puts High Value on Healthier Food Products

Campbell Soup Co. is expanding their business to include carrots, premium juices and salad dressings to boost their bottom line. On Monday, the leading soup manufacture announced the purchase of Bolthouse Farms for $1.55 billion.

Looking to enhance the business and meet the growing demand for healthier foods, Campbell made a strategic move to ensure the business remains competitive. The carrot business allows Campbell’s to enhance their healthy snacking category while Bolthouse's juice line will complement their existing “V8” beverage unit. Bolthouse Farms saw $689 million in sales at the end of their fiscal year in March. This was an important move after the company saw their shares drop 3 cents on Monday to $32.96. While their U.S. soup sales fell in the third quarter, their V8 unit rose by 5 per cent.

The Bolthouse brand will remain as a separate business unit within the company. Campbell is wasting no time to utilize the brands potential and this fall the company will be revealing a new line of products including soup pouches to appeal to a younger target audience.

Some analysts suggest that while Bolthouse is a solid brand, the price tag is steep even for a household name like Campbell Soup.

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