The Campbell Soup Company is boosting its marketing budget by 15 per cent in an effort to revive its flagging fortunes.
Campbell’s chief executive Douglas Conant is increasing the marketing budget to &£139m as part of a plan to rejuvenate the soup business and invest more in new product development.
Conant told a press conference in the US last Friday that although Campbell’s is still the leader in the “wet soup” category, with a 70 per cent market share, its marketing has failed in recent years.
Plans include the launch of new flavours and improvements to the taste of existing variants, as well as innovations such as “easy-open lids”, and a range of “sipping soups”.
The company will also try to increase its brand presence in supermarkets, restaurants, cafés and other venues.
In April Conant reorganised the company’s North American operations, separating the soup business from the beverage and sauce divisions.
Conant also announced that Campbell’s will cut its annual dividend by 30 per cent from 90 cents (63p) a share to 63 cents (44p), a move which will allow the company to increase its capital investment next year by 50 per cent, to $300m (&£210m).
Campbell’s advertising is handled by Abbott Mead Vickers.BBDO and Zenith Media in the UK.