Campbell Soup expects higher sales

Campbell Soup raised its annual sales forecast after topping Wall Street estimates for quarterly results on Wednesday, as inflation-weary Americans turn to its condensed soups, ready-to-serve meals and snacks to stock their pantries.

Though stretched thin amid increasing prices, Americans are still snacking on Campbell’s cookies and salty snacks while a continued preference for cooking at home has further bolstered demand.

“Consumers continue to seek out our brands as they look for ways to stretch their food budgets and turn to value-driven meals that . . . are easy to prepare,” chief executive Mark Clouse said.

For instance, Campbell’s mac and cheese dish featuring its condensed cheddar cheese soup and its one-pan beef roast and vegetables recipe using its French onion soup — both of which cost under $4 a serving — resonated well with customers.

While U.S. soup sales rose 7 percent in the second quarter, Campbell is facing growing competition from cheaper private-label counterparts for soups and broth.

Strong demand for Campbell’s snack brands like Goldfish crackers and Pepperidge Farm cookies drove a 15 percent jump in the snacks division’s organic sales, helping it lift quarterly net sales 12 percent to $2.49 billion, above a Refinitiv estimate of $2.44 billion.