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The basics:

• Campbell’s buys 49% of Rao’s sauce maker La Regina for $286M
• Deal deepens partnership, supports Rao’s growth
• Rao’s tops $1B in annual sales, key growth driver
• Campbell’s gains option to acquire remaining 51% stake

The Campbell’s Co. has acquired a 49% stake in the privately held company that makes its Rao’s Homemade tomato-based pasta sauces.

The Camden-based soup and snacks giant will pay $286 million in two installments for La Regina, according to a filing with the U.S. Securities & Exchange Commission.

Along with solidifying a long-term strategic partnership, the move will help fuel continued growth for one of Campbell’s most popular brands, the buyer said in a May 4 press release.

Founded in 1972, La Regina has been a key partner of Rao’s for more than three decades. The Italy-based company produces all Rao’s sauces as well as operates a facility in Georgia.

Rao’s joined Campbell’s portfolio in 2024 with the $2.7 billion acquisition of Sovos Brands Inc. The banner recently surpassed $1 billion in 12-month net sales to become the company’s fourth billion-dollar brand. It joins Campbell’s soup, Goldfish cracker and Pepperidge Farm baked goods.

Following the May 4 closing, Campbell’s and the target will enter into agreements “providing for the governance and management of La Regina,” according to the SEC filing. Campbell’s President and CEO Mick Beekhuizen said the move “reinforces our commitment to preserving the artisanal craftsmanship of Rao’s sauces.”

“Consumer loyalty and ongoing household penetration expansion are born from what makes the brand special: exceptional taste, quality ingredients, and a restaurant quality experience at home. We could not be more excited about the momentum on the Rao’s brand and the opportunities ahead,” he said.

Saucy move

This strategic investment also includes specific call and put options that enable Campbell’s to acquire the remaining 51% interest in the future, according to the SEC filing.

When Campbell’s disclosed its plans in December 2025 to take a minority stake in La Regina, executives said they believe the transaction will ensure “Rao’s continued commitment to the highest quality products while accelerating innovation and new product development.”

The transaction comes as Campbell’s continues to see softer demand for its soup and snack products. Other brands in the company’s fold include Cape Cod, Kettle Brand, Pace, Pacific Foods, Prego, Snack Factory Pretzel Crisps, Snyder’s of Hanover, Swanson and V8.

In its latest earnings release, Campbell’s reported net sales of $2.56 billion in its meals & beverages business and $914 million in its snacks unit for the period ending Feb. 1. The Q1 figures represent declines of 5% and 6%, respectively, from the prior quarter.

The company pointed to decreased spending on snacks by consumers, more competition from private labels and supply chain disruptions.

However, amid the broader portfolio struggle, Rao’s has been a standout performer thanks to strong market demand for premium sauces.

Campbell’s considers Rao’s a key growth driver within the meals & beverages division. The company has been supporting the brand through expanded distribution, increased marketing investment, product innovation an supply chain strengthening.