Campbell’s has had its share of struggles lately and its relationship with Walmart is one of them:
“The company on Friday reported a 2% drop in organic net sales in its second quarter saying that a company it described as a “key customer” in North America had placed fewer orders for its namesake canned soups. While Campbell’s CEO Denise Morrison did not identify Walmart by name, Wall Street analysts pointed to the companies’ inability to agree on how to promote Campbell’s soups in its stores. Walmart, the largest U.S. grocer by far with $165 billion in annual food sales, has been ramping up its own brands while reducing inventory of name brand items in its stores.”
P.S. The current private label trend can put retailers in competition with even established suppliers. Avoid skirmishes with your Walmart buyer and get on the private brand-wagon. Our Private Brands Strategy class can show you how!