Dive Brief:
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Campbell Soup is selling its Noosa yogurt business to Lakeview Farms, a manufacturer of fresh dips, desserts and specialty products. Terms of the transaction were not disclosed.
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Noosa generated net sales of $177 million for the last 12 months ending October 2024, according to Campbell. The transaction is expected to close in the first quarter of next year.
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Campbell acquired Noosa as part of its $2.7 billion purchase of Sovos Brands in March. At that time, Campbell announced it planned to evaluate strategic alternatives for the brand because the yogurt category is not core to its business.
Dive Insight:
For Campbell, the crown jewel of the Sovos deal was the Rao’s pasta sauce brand which is nearing $1 billion in annual sales. The fast-growing Italian brand complemented Campbell’s roster of predominately shelf staple offerings including V8, Goldfish, Prego and Pepperidge Farm.
The New Jersey company had no intention of carving out a niche in yogurt, and Noosa was virtually certain to be sold. Still, Campbell was adamant that Noosa was performing well and that it would only divest the yogurt maker unless it got what it viewed as a fair price.
“Noosa is a well-run business supported by a great team,” Mick Beekhuizen, president of Campbell’s Meals & Beverages, reiterated in a statement. “The sale will drive greater focus on our portfolio of leadership brands.”
The Sovos purchase, which also added Michael Angelo’s frozen meals to the mix, underscored Campbell Soup’s efforts to increase its exposure in meals and premium offerings.
During the last few years, Campbell has divested brands that are not key to its business as it focuses on increasing its growth and sharpening the scope of its portfolio.
Earlier this year, Campbell sold its Pop Secret popcorn brand to Our Home, which makes offerings such as Popchips, RW Garcia and Sonoma Creamery. And in 2023, it sold its Emerald nuts business to private-label food manufacturer Flagstone Foods.
In contrast to Campbell, Lakeview Farms, the buyer of Noosa, has significant exposure to fresh foods through its refrigerated desserts, dips, salsa, hummus and specialty products. Lakeview said the acquisition adds significant size and scale to its refrigerated portfolio and expands its presence into the $8 billion yogurt category.
The transaction includes Noosa’s manufacturing facility in Bellvue, Colorado. Approximately 240 workers will transition to Lakeview Farms with the business.
