Don’t worry, Campbell isn’t planning to change Rao’s sauce recipe

Camden company responds to customer concern in wake of $2.7B takeover

Kimberly Redmond//August 17, 2023//

With an annual adjusted net sales of $837 million in 2022, Sovos Brands Inc.'s flagship brand, Rao’s, accounted for 69% of those earnings and grew organic net sales by 34.9% during the period, according to the company.

Rao’s joined The Campbell Co.’s portfolio in 2024 with the $2.7 billion acquisition of Sovos Brands Inc. - PROVIDED BY SOVOS BRANDS

With an annual adjusted net sales of $837 million in 2022, Sovos Brands Inc.'s flagship brand, Rao’s, accounted for 69% of those earnings and grew organic net sales by 34.9% during the period, according to the company.

Rao’s joined The Campbell Co.’s portfolio in 2024 with the $2.7 billion acquisition of Sovos Brands Inc. - PROVIDED BY SOVOS BRANDS

Don’t worry, Campbell isn’t planning to change Rao’s sauce recipe

Camden company responds to customer concern in wake of $2.7B takeover

Kimberly Redmond//August 17, 2023//

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There’s no need to get saucy.

Shortly after announced plans to acquire the parent company of Rao’s for $2.7 billion, the Camden-based soup and snack giant is trying to assure customers that there are no plans to change the iconic jarred pasta sauce’s recipe.

During an Aug. 10 interview with Yahoo Finance, Campbell CEO Mark Clouse said Rao’s will remain the same high-quality product that consumers know and love.

“We will not touch the sauce. We just spent a pretty significant amount of money to buy something that we believe is really, really special,” Clouse said.

“I appreciate all the encouragement on social media, but we are not going to change it,” he said. “We’ve been pretty consistent for 125 years with a pretty darn good chicken noodle soup that we guard with our lives to make that quality stays the same. We’re going to protect that [Rao’s recipe], as we should.”

After news of the acquisition broke Aug. 7, Rao’s fans took to social media to express concern over what the new ownership could mean for the fate of their beloved sauce.

In a Reddit thread that garnered more than 1,200 comments, posters described the deal as a “tragedy” and vowed to start stocking up on the sauce now before Campbell has a chance to tweak the recipe.

One user wrote, “That means they’re gonna start adding sugar to it. This is why we can’t eat nice things,” while another stated, “What’s coming: Some more high fructose corn syrup with a touch of shrinkflation at a bigger price.”

Considered by consumers to be a cut above other store-bought sauces, Rao’s is slow-simmered, made in small batches and features top-notch ingredients, including hand-picked tomatoes from Italy and pure Italian olive oil.

Fans of Rao's even had the chance to buy the "Marinara Purse" – for $1,000 – at the brand's pop-up Saucery shop in Chicago earlier this summer.
Rao’s fans even had the chance to buy the “Marinara Purse” – for $1,000 – at the brand’s pop-up Saucery shop in Chicago earlier this summer. The company also held a pop-up in New York in April 2022, where customers could find rhinestone-encrusted sauce jars. – SOVOS BRANDS

Rao’s originated as one of New York City’s most exclusive Italian-American restaurants and evolved into a sauce brand when the eatery’s owner, Frank Pellegrino Sr., began jarring and selling the signature marinara sauces in retail outlets in 1992. Now, Rao’s lineup includes a range of sauces, dry pasta, soups and frozen foods sold online and in grocery stores.

In an Aug. 14 LinkedIn post, Clouse commented further on what makes Rao’s so special.

“Prior to our acquisition of Sovos Brands, the final step of due diligence was a visit to Italy to see how Rao’s sauce is made. It’s part art, part science, and pure magic!” he wrote. “What makes this brand truly special is its quality, the care taken to use the finest ingredients, and the artisans who guard the recipe of what is without a doubt the best spaghetti sauce in the world.”

The CEO went on to write, “I’ve seen the speculation that we’re going to change the recipe—even some of my friends texted me. I’ll tell you what I told them: There’s no way we’re changing the sauce!”

“We have a long way to go to complete the deal, but Campbell’s job as stewards of the Rao’s brand will be to fuel growth by bringing this perfect sauce to more and more people Viva Rao’s recipe!” he wrote.

In acquiring Colorado-headquartered Sovos Brands Inc., Campbell will also take control of Michael Angelo’s frozen entrees and Noosa yogurt. The deal – which is expected to close by the end of December – marks the first major acquisition for Clouse as chief executive officer of Campbell.

The purchase will be financed through new debt and is projected to produce $50 million in cost savings within two years, according to Campbell.

While speaking with Yahoo Finance, Clouse said Campbell 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.”

With an annual adjusted net sales of $837 million in 2022, Sovos’ flagship, Rao’s, accounted for 69% of earnings and grew organic net sales by 34.9% during the period, according to the company.

Campbell believes bringing Rao’s into its sauce lineup – which now consists of lower-priced Prego sauces and Swanson broths – will enable the company to deliver on its strategic goal of building a $1 billion sauce business by entering the “ultra-distinctive pasta sauce” space.