Campbell Soup Company announced it has entered into an agreement to acquire Pacific Foods of Oregon for $700 million.
Pacific Foods is a leading producer of organic broth and soup, and also produces shelf-stable plant-based beverages and food products. Since its beginning in 1987, Pacific Foods has sustained growth and generated approximately $218 million in trailing twelve month net sales as of May 31, 2017.
The move is part of Campbell’s effort to expand its offerings in the healthful foods category. The Pacific Foods brand is also popular among younger customers, especially Millennials.
“This acquisition is consistent with our purpose, ‘Real food that matters for life’s moments,’” says Denise Morrison, Campbell’s president and CEO. “Pacific is an authentic brand with a loyal consumer following. The acquisition allows us to expand into faster-growing spaces such as organic and functional food.”
Campbell’s sees Pacific Foods as helping its new mission to deliver better-for-you food and beverages that meet consumers’ changing tastes and preferences. In turn, Campbell’s investment will help scale Pacific Foods by expanding distribution, boosting marketing and supporting more R&D and the supply chain.
Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in North America, including brands such as Campbell’s, V8, Swanson, Prego, Pace and Plum Organics. Pacific Foods has approximately 540 employees and operates a certified organic plant in Tualatin, Ore. Campbell plans to continue to operate Pacific Foods out of Tualatin.