By Jessica DiNapoli and Anuja Bharat Mistry
(Reuters) -Campbell Soup is dropping "soup" from its name to become "The Campbell's Company," CEO Mark Clouse said on Tuesday, a pivot symbolizing the company's shift to other packaged food such as jarred sauces like Rao's and Goldfish snacks.
Clouse told Wall Street at its investor day that Campbell's is focusing on 16 top brands across its meals and beverages and snacking division including Goldfish, V8 beverages and Prego sauces.
"Today we're so much more than soup," Clouse said. Campbell's was the first to sell canned soup more than a century ago. The company's cans later were featured in iconic pop art by Andy Warhol.
To meet financial guidance, the company will require soup sales to remain stable, Clouse said. Campbell's executives said, however, that as the U.S. population ages, soup sales may rise because older people eat more soup than younger generations.
Campbell's is looking to its Goldfish snacks for growth, and expects the crackers to become its largest brand by its 2027 fiscal year, executives said.
Campbell is launching a $250 million cost savings program that it says will help it grow profits.
The company plans to seek shareholders' approval on changing its name at this year's annual meeting, Clouse said.
Shares of Camden, New Jersey-based company were up 0.2% in afternoon trading.
U.S.-focused consumer goods companies such as Campbell, Conagra Brands (NYSE:CAG) and J.M. Smucker have seen weak demand as cost-conscious consumers have been trading down to cheaper alternatives amid sticky inflation.
Snacking is experiencing pressure as middle and lower-income households face financial strain, Clouse said.
He added that the company has not yet seen much impact from consumers taking appetite-suppressing GLP-1 drugs for weight loss such as Wegovy.
Campbell had posted fourth-quarter sales below analysts' estimates on tepid demand.