Campbell Soup Company to Divest Noosa Yogurt Brand Following Sovos Acquisition
Source: The DairyNews
Campbell Soup Company has announced plans to divest its Noosa yogurt business, which it acquired through its recent purchase of Sovos Brands. The company first revealed its intent to acquire Sovos in August 2023, completing the $2.7 billion acquisition in March 2024. At the time, Campbell’s President and CEO Mark Clouse stated that yogurt would not be a core component of the company’s strategy.
Despite this, other Sovos brands, such as Rao’s Italian pasta sauces and Michael Angelo’s frozen meals, have exceeded expectations. Campbell’s Q3 financial results for 2024 reported a “better-than-expected contribution of the Sovos Brands business,” with net sales up 6%, driven by a partial quarter of sales contribution from Sovos.
Although Campbell has decided to explore strategic alternatives for the Noosa business, Clouse did not disclose details regarding a potential buyer, disposal date, or financial terms of the deal. He noted the surprising strength of the Noosa business, acknowledging the excellent performance and leadership of the team behind it.
“The Noosa business is an excellent product and brand that continues to perform very well. In the quarter, the Noosa Spoonable business returned to dollar growth, driven by the success of its 8oz yogurt. Additionally, the 8oz yogurt has now experienced 14 consecutive quarters of dollar consumption growth,” Clouse told analysts.
Despite deciding to divest the Noosa brand, Clouse emphasized that the business has exceeded expectations, highlighting the unique strength and performance of Noosa within the yogurt category.
Although Campbell has decided to explore strategic alternatives for the Noosa business, Clouse did not disclose details regarding a potential buyer, disposal date, or financial terms of the deal. He noted the surprising strength of the Noosa business, acknowledging the excellent performance and leadership of the team behind it.
“The Noosa business is an excellent product and brand that continues to perform very well. In the quarter, the Noosa Spoonable business returned to dollar growth, driven by the success of its 8oz yogurt. Additionally, the 8oz yogurt has now experienced 14 consecutive quarters of dollar consumption growth,” Clouse told analysts.
Despite deciding to divest the Noosa brand, Clouse emphasized that the business has exceeded expectations, highlighting the unique strength and performance of Noosa within the yogurt category.
