Campbell’s: ERP Integration and Strategic Pricing & Promotions Could Cushion Tariff Impact
The Campbell’s Co. has several levers at its disposal as it looks to offset rising costs and supply chain volatility due to the tariff war and shifting consumer behavior. Strategies include business and network optimizations and price-pack architecture.
Specifically, the company is expecting to get hit by Canadian retaliatory tariffs, U.S. Section 232 tariffs on tinplate and aluminum, and reciprocal trade actions impacting the Italy-based Rao’s portfolio.
Optimizations to Navigate Volatility
Carrie Anderson, executive vice president and CFO, cautioned that it’s too early to provide current tariff estimates for fiscal 2026, as “the rapidly evolving trade landscape” may shift.
"We are working to minimize the overall impact," she said during the company’s latest earnings call. She shared steps such as strategic inventory management, alternative sourcing, supplier partnerships and "surgical pricing actions."
Because part of the company's strategy also includes product price and and inventory optimizations, Campbell’s recently completed ERP integration for its Sovos Brands (acquired last year), could help soften the impact within its sauces category.
“This will unlock additional back-office savings in IT, finance and order management into fiscal ’26,” said Anderson, part of an increased cost savings outlook of $130 million for the year, up from $120 million.
Efforts build on broader network initiatives Campbell’s has been working on, including direct store delivery and warehouse and route optimization. Additionally, the company created a growth office to support its divisions, focused on elevating capabilities within consumer insights, brand activation, innovation and revenue growth management.
“We’re building a stronger foundation for the future by improving our efficiency and effectiveness across the organization to facilitate growth,” said Mick Beekhuizen, Campbell’s president and CEO.
The Shifting Consumer Landscape Adds Complexity
The company is having to balance its tariff response with supply chain strategy that takes into consideration weakening consumer confidence as shoppers continue to become increasingly intentional and focus more on value, better for you and indulgence categories. For this reason, the company will not be leaning heavily on promotions, according to president and CEO Mick Beekhuizen.
“Instead of focusing purely on promotional activity, we’re bringing it back to price-pack architecture, making sure we have the right price points in the marketplace,” he said, citing the success of multipacks in snacks and the 2.5-ounce Goldfish grab bag. Campbell’s is focused on offering value through format and pricing rather than deep discounting.
“These dynamics are pushing us to invest in the capabilities that will position us for long-term growth,” Beekhuizen said.
