Campbell Soup is focusing on its sauce business, particularly Rao’s, after a recent $2.7 billion acquisition of Sovos Brands. Rao’s, known for its premium jarred pasta sauces, is a key part of Campbell’s growth strategy. With annual sales nearing $1 billion and double-digit growth, Rao’s is expected to continue growing in the high single digits. The brand remains committed to its sauce products, with 75% of sales coming from this category.
Campbell emphasizes quality and long-term brand protection for Rao’s, despite the temptation of short-term revenue gains. The brand has seen significant growth potential, with only half of U.S. households purchasing its products. Rao’s continues to innovate with new flavors like caramelized onion and a high-end White Truffle Limited Reserve.
While the focus remains on sauce, Campbell sees opportunities to expand into ancillary products like frozen pizza, entrees, and soup. Rao’s appeal spans across different economic demographics, attracting both high-end consumers and budget-conscious shoppers. The brand is especially popular with millennials, positioning it for future growth as a household staple.
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Lara Heller graduated from the University of Amsterdam in the Netherlands with a degree in New Media and Communication. During her studies, she specialized in digital media, social media strategies, and content creation. She participated in various digital media projects during her university years, focusing particularly on online journalism and media ethics. After graduation, Lara started working as a content strategist at one of Europe’s leading digital media agencies, where she developed campaigns that strengthened the digital presence of numerous international brands.
