Despite an aggressive "soup 'n sandwich" promotion touting grilled cheese from Kraft, Campbell's (NYSE: CPB) net income has tumbled. So much for THAT strategy. Per the WSJ:
Campbell Soup Co. reported Monday a 3.7% drop in its fiscal first-quarter net income amid a commodity-hedging loss, despite strong sales gains for its condensed soups and broths business….
Gross margin fell to 38.7% from 40.8% amid the increased marketing costs…
The food company has promoted its condensed soups as a bargain buy and has teamed up with cheese giant Kraft Foods Inc. to promote meals of soup and grilled-cheese sandwiches. In the quarter, sales of Campbell's condensed soups rose 14%.
Back to Spam.
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