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Diving overview:
Campbell Soup is selling its Noosa yogurt business to Lakeview Farms, a manufacturer of fresh dips, desserts and specialty products. Terms of the deal were not disclosed.
Noosa generated $177 million in net sales in the last 12 months through October 2024, according to Campbell. This transaction is expected to be completed in the first quarter of next year.
Campbell acquired Noosa last March when it acquired Sovos Brands for $2.7 billion. At the time, Campbell announced that it planned to evaluate strategic alternatives for the brand because the yogurt category was not core to its business.
Dive Insights:
This is Campbell’s crowning jewel. Sobos The deal is Lao’s A pasta sauce brand with annual sales approaching $1 billion. Fast-growing Italian brands complement Campbell’s roster of shelf staples, 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. Nonetheless, Campbell is adamant that he will sell the yogurt maker if Noosa performs well and does not get a fair price.
Mick Beekhuizen, president of Campbell’s Meals & Beverages, said in a statement: “Noosa is a well-run business supported by a great team. This sale will bring further focus to our portfolio of leadership brands.”
The Sovos purchase, which also added Michael Angelo’s frozen meals, highlighted Campbell Soup’s efforts to increase exposure to meal and premium products.
Over the past few years, Campbell has focused on driving growth and expanding the scope of its portfolio, while selling off brands that are not critical to its business.
Earlier this year, Campbell sold its Pop Secret popcorn brand to Our Home, which produces products for the likes of Popchips, RW Garcia and Sonoma Creamery. And in 2023, it sold its Emerald Nuts business to Flagstone Foods, a private label food manufacturer.
Unlike Campbell, Noosa’s buyer, Lakeview Farms, has significant exposure to fresh foods through its refrigerated desserts, dips, salsas, hummus and specialty items. Lakeview said the acquisition adds significant size and scale to its refrigerated portfolio and expands its presence in the $8 billion yogurt category.
The transaction includes Noosa’s manufacturing facility in Bellevue, Colorado. Approximately 240 workers will transition to Lakeview Farms along with the business.
