In an investor call yesterday morning, Campbell’s Soup CEO Denise Morrison said that “proliferation of specialty beverages and packaged fresh juices” is having a significant effect on first quarter 2013 sales of its V8 brand of shelf-stable juice drinks, according to the Associated Press (AP). Campbell’s said that its quarterly profit tumbled by 30 percent in the first four months of the year with sales of its V8 brands sliding alongside that of its soup products.
Morrison doesn’t expect beverages to be a growth driver for Campbell’s this year, the AP reported. While its July acquisition of Bolthouse Farms, along with that of baby food manufacturer Plum Organics, which the company purchased in June, was intended to give the company a base in “fresh packaged goods,” the moves have yet to yield positive results for Campbell’s. Instead, a recall of some Plum Organics products hurt revenues for the company.
Shares of Campbell’s Soup slid by 6 percent to $39.28 after the earnings report was released. At press time today, its share price is hovering around $38.50.
Editor’s note: A earlier version of this story incorrectly stated that sales of Bolthouse Farms beverages declined this year.