The basics:

• Campbell’s meals & beverages unit sales rise 7% in Q3 2024
• Consumers cooking at home at highest rate since early 2020
• Snacks unit declined 5% amid tighter discretionary spending
• Company exploring pricing actions, supplier savings amid tariffs

Amid fears of a potential recession and price hikes triggered by hefty tariffs, more consumers are opting to avoid costly dine-outs and cooking for themselves to save money, according to The Campbell’s Co.

As a result, the Camden-based soup and snacks giant recorded strong fiscal year 2025 third-quarter sales in its meals & beverages unit due to increasing demand for affordable products. In fact, Campbell’s said the highest rate of consumers are cooking at home since the onset of the pandemic in early 2020.

For the period ending April 27, 2025, the company reported a 7% rise in net sales of products like Rao’s tomato sauce, Chunky soups and Homestyle ready-to-eat soups.

By contrast, the snacks unit – whose portfolio includes Goldfish crackers, Late July snacks and Lance sandwich crackers – saw a 5% decline.

Campbell’s surpassed Wall Street’s expectations for the quarter, posting a 4% year-over-year revenue increase of $2.48 billion. Despite weaker snack demand and tariff impacts, the company maintained its full-year net sales growth forecast of 6% to 8%.

Campbell’s also said it was pursuing possible pricing actions while working with suppliers to seek better sourcing and lower product costs to minimize the effect of import taxes.

Stretching food budgets

In a June 2 earnings call, Campbell’s Chief Executive Officer Mick Beekhuizen said, “Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they’re increasingly intentional about their discretionary snack purchases. These behaviors supported growth in our Meals & Beverages categories and increased headwinds in our Snacking categories,” he said, noting, “Consumers are cooking at home at the highest levels since early 2020 and turning to our brands for value, quality, and convenience.”

“Collectively, our 16 Leadership brands’ in-market performance was in-line with overall category consumption, with Meals & Beverages consumption ahead of categories, and Snacks behind driven by heightened competitive pressures,” he said.

Consumers are cooking at home at the highest levels since early 2020 …
– Mick Beekhuizen, The Campbell’s Co. CEO

The company’s lineup includes four $1 billion banners – Campbell’s, Goldfish, Pepperidge Farm and Rao’s.

Other leadership brands include Cape Cod, Kettle Brand, Pace, Pacific Foods, Prego, Snack Factory Pretzel Crisps, Snyder’s of Hanover, Swanson and V8.

Beekhuizen said, “Within Snacks, performance was mixed across the portfolio, and while we’re benefiting from some strong innovation launches, we are adjusting our plans to make sure we’re competitive across our full brand portfolio. Our overall performance reflects our strong execution and disciplined cost management in what remains a dynamic operating environment. We continue to evolve our organization and capabilities to better leverage our scale for growth and drive long-term value creation.”

The results come as the U.S. economy braces for what’s ahead after President Donald Trump’s tariff policy sparked recession fears and battered consumer sentiment.