Campbell Soup could be better off as a private company

As a private company, "you can say that we are not paying too much for acquisitions … we are going to waste a lot of money because we are happy to be growing slowly," said Erik Gordon, professor of commerce at the University of Michigan.

Campbell could use some of the money saved by avoiding such arrangements to invest in his soup business. The company is profitable, but it still needs investments, such as new equipment to improve the health of its soup. Condensed soup is Campbell's past, it's not his future. Under pressure from the publication of quarterly results, Campbell delayed the evolution of its soups business by simply fighting the slowdown in demand by raising prices. As a result, his canned soup no longer has the weight of consumers to impose the desired price, which harms his relationships with major retailers such as Walmart, said people familiar with the industry.

"Soup is a great company and Campbell is an iconic brand," said Anthony DiSilvestro, its chief financial officer, when calling the company's quarterly results in August.

"[But] the company has used too much to generate profits and has been under-invested. In recent years, we have been too focused on prices and margins, and we have not done enough to keep our soup products and brands relevant to consumers. "

Meanwhile, private companies such as Kind Bar and Chobani have created multi-billion dollar private food companies, in which they have been able to invest and make mistakes in public opinion.

Mars Candy, another iconic food brand in the United States, has been transformed. The company, wholly owned by the Mars family, generates sales of about $ 35 billion with its pet foods, snickers and pet foods. These are bets for which public investors would probably not have had patience, such as paying $ 9 billion for the VCA veterinary hospital corporation. This agreement has not been a quick game for growth, but part of the long-term presence that Mars plans in the pet industry.

Third Point, who demanded the sale of the company, declined to comment.

Campbell's president, The Vinney, said in a letter sent to shareholders last week that the company was "confident" in its "new strategic direction," adding that the board "would continue to seriously consider other strategic options." ". Vinney reiterated Campbell's statement that the company had carefully evaluated the option of selling itself during a review conducted earlier this year.