Forecasting Snack Innovation After the Campbell-Snyder’s-Lance Deal

Campbell Soup Co.’s December acquisition of diversified snack maker Snyder’s-Lance offers the Camden, N.J.-based food giant a chance to accelerate a strategy to develop “real food that matters for life’s moments,” according to Denise Morrison, president and CEO of Campbell Soup.

Snyder’s-Lance has leading market positions in its core categories, including pretzels, sandwich crackers, kettle chips, deli snacks, and organic and natural tortilla chips. The combination of Charlotte, N.C.-based Snyder’s-Lance brands with Campbell brands such as Pepperidge Farm, Arnott’s and Goldfish will drive sales growth and create value for shareholders.  

Approved by the boards of directors of both companies, the acquisition “dramatically transforms Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” Morrison said. The $4.87 billion acquisition marks the 21st buying claim of a snack company in 2017, a record high, according to a report in NJBiz.

Click through for nine recent rollouts from the two combined companies and how they might be poised to leverage them across retail channels.
 

With headquarters in Charlotte, N.C., Snyder’s-Lance has approximately 6,000 employees and operates 13 manufacturing centers throughout the United States and United Kingdom.

One of its brands, Snack Factory recently introduced Dessert Thins, a light, crispy snack in three flavors: Brownie, Chocolate Chip and Lemon Tart. At 120 calories per serving, thins contain no cholesterol or trans fat. They are also non-GMO. 

Campbell’s Morrison said the acquisition “will provide our consumers with an even greater variety of better-for-you snacks.”

One example: Lance’s Gluten Free Snack Crackers, which come in Baked Original and Real Cheddar Cheese flavors. Each 5-ounce box has an SRP of $3.99. Lance also offers Gluten Free Sandwich Crackers in Cheddar Cheese and Peanut Butter flavors.

The combination of Snyder’s-Lance brands with Pepperidge Farm, Arnott’s and Goldfish creates a diversified snacking leader, driving sales growth and product diversity.

The latest addition to Goldfish’s 30-plus variety lineup, Goldfish Crackers Made With Organic Wheat contain no GMO ingredients and are available in Cheddar, Parmesan and Saltine flavors in 8-ounce resealable bags.

 

Campbell’s baked snacks product portfolio generated about $2.5 billion in net sales in fiscal 2017. With the addition of Snyder’s-Lance’s complementary portfolio, snacking would represent about 46% of Campbell’s annual net sales (previously 31%) on a pro forma basis. Campbell’s soup portfolio, including the recent acquisition of Pacific Foods, would represent about 27% of the company’s annual net sales.

In terms of soup innovation, Chunky Maxx is the newest line of soups. It is designed to cater to males seeking a quick and filling meal alternative. It is made with premium meats and packed with 18 to 26 grams of protein.

Snyder’s-Lance portfolio includes well-known brands such as Snyder’s of Hanover, Lance, Kettle Brand, Kettle chips, Snack Factory Pretzel Crisps, Pop Secret and Cape Cod, the latter branching out with Sea Salt and Kettle Corn popcorn—varieties that cater to those seeking better-for-you snack alternatives that still retain solid flavor. 

Snyder’s-Lance will become part of Campbell’s Global Biscuits and Snacks division led by Luca Mignini. Anchoring the division are such brands as Pepperidge Farm, Arnott’s (Scotch Finger Santa’s Biscuits) and Kelsen, as well as simple meals and shelf-stable beverages business in Australia, Asia Pacific and Latin America. 

Campbell’s expertise in brand building, R&D and supply chain and operations, coupled with Snyder’s-Lance’s well-known portfolio, distribution system and history of strong sales growth, “will allow us to create a differentiated, branded snacking business with greater scale,” said Mignini. “The combined portfolio will be even more relevant to consumers who are increasingly seeking better-for-you snacks.”

One new offering: Pepperidge Farm recently launched Milano Toasted Marshmallow cookies. They feature Milano’s classic chocolate filling along with a thin marshmallow-flavored layer.

Thomas Griffiths, certified master chef and vice president of Campbell’s Culinary & Baking Institute, recently told Food Business News that the division is always on the hunt for “authentic foods and authentic ingredients. We’re researching North American subregions. … As we continue to learn about these areas it becomes so clear that there are so many young people who want to eat these authentic, flavorful, global foods.”

Campbell Soup found a niche consumer coalition with Well Yes, a nutritious ready-to-serve soup line featuring ingredients such as quinoa, kale and lean proteins. 

And in the spirit of snack blending, Snyder’s Pretzel Sandwiches feature Brick Oven Style Pizza, Classic Hummus and Cheddar Cheese flavors between two bite-sized pretzel snaps.