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Campbell Soup Co. is selling its Noosa yogurt business to Lakeview Farms LLC, an Ohio-based manufacturer of dips, desserts and specialty products.

The Camden-headquartered soup and snacks giant did not disclose financial terms of the deal in its Nov. 12 press release announcing the planned sale. 

Following the transaction’s anticipated close in the first quarter of next year, Campbell’s said it does not expect the sale to have a “material impact to its fiscal 2025 financial results.”

Noosa joined Campbell’s lineup after the $2.7 billion purchase of Sovo Brands Inc. in March. As part of the acquisition, the company also took control of Rao’s Homemade Italian food brand and Michael Angelo’s frozen entrees.

Since the yogurt category is not core to Campbell’s strategy, the company said it evaluated strategic alternatives for the brand. According to the company, Noosa generated net sales of $177 million for the last 12 months ending October 2024.

In a statement, Mick Beekhuizen, executive vice president and president, Campbell’s Meals & Beverages, described Noosa as a “well-run business support by a great team.”

“We are pleased that its new home will be with a buyer with a strategic focus on the refrigerated category. The sale will drive greater focus on our portfolio of leadership brands,” he said.

Not-so-secret sauce

The divestiture comes as Campbell’s hopes to turn Rao’s into a $1 billion unit. Later this month, the brand will have its first float in the Macy’s Thanksgiving Day Parade. 

While Campbell’s regards the premium sauce as the “biggest and most business-critical” part of the brand, the upcoming float aims to showcase some of Rao’s lesser-known products, like pasta, pizza and frozen entrees.

During an August 2023 interview with Yahoo Finance, Campbell Chief Executive Officer Mark Clouse said the company is eyeing greater distribution of Rao’s sauces, as well as a push into the frozen section with new products. However, there’s a possibility the company could sell off Noosa, as Clouse said he views the brand as “non-core.”

According to Lakeview Farms, the acquisition includes all Noosa trademarks and the brand’s manufacturing facility in Colorado. Approximately 240 current Noosa employees will transition to Lakeview Farms with the business, the company said.

Lakeview Farms CEO Tom Davis said his company is excited to welcome the Noosa brand and team.

“Noosa fits perfectly into our portfolio of premium refrigerated food brands and offers Lakeview a unique opportunity to step into the high-growth yogurt category,” he said. “Noosa also brings us a team with deep talent and expertise and a state-of-the-art manufacturing facility. We look forward to Noosa joining us as we continue building our business through commitment to innovation, quality products, and world-class manufacturing and distribution.”

Founded in 1988, Lakeview Farms owns a number of brands in the fresh foods space, including Fresh Cravings, La Mexicana, Señor Rico and Salads of the Sea. Its products can be found in retailers such as Walmart, Kroger, Albertson’s and Publix.

Mixing it up

For Campbell’s, it’s the latest portfolio change amid a larger push to grow beyond the 155-year-old company’s traditional soup business and into snacks, sauces and beverages.

Other moves include its $6.1 billion purchase of snacks manufacturer Snyder’s-Lance in 2018. Campbell’s sold off its Emerald Nuts snack brand last year to private label health snacks maker Flagstone Foods. Additionally, the company divested its Pop Secret popcorn business to Boonton-based wholesome snack manufacturer Our Home.