What are the challenges for "big food" companies today?

Food makers in a tough spot trying to keep legacy brands relevant
2/19/2015

Consumer skepticism and negative perceptions about legacy food brands are driving brands like Campbell to change the way they do business.

Food makers such as Campbell, Kellogg and Kraft are all trying to keep up with new consumer behaviours, which include an increased interest in private label products.

A recent article in MarketingDaily points out that Campbell soup has reorganized into three new divisions (Americans Simple Meals and Beverages, Global Biscuits and Snacks, and Packaged Fresh) and is also cutting at least $200 million in costs over three years in an attempt to put money towards growing product areas that that are expanding more quickly than some of its legacy centre store offerings, including soups and beverages.

During a conference in Florida this week, Campbell CEO Denise Morrison said the company is "well aware of the mounting distrust of big food... We are also under no illusions about the difficulties that legacy food brands have recently faced in their efforts to reshape consumer perceptions about their products and respond productively to toxic messages in the public environment. It is a very tough assignment."

With Kellogg reducing its long-term annual revenue growth estimate recently, and Kraft losing market share in 40% of its U.S. businesses last year, it's no easier out there for other large CPGs.

Read the full story here.

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