Campbell Soup Company has struck a deal to offload its Noosa yogurt brand to US desserts and dips maker Lakeview Farms.
Financial terms were not disclosed.
Campbell acquired Noosa in March this year as part of its purchase of US peer Sovos Brands, a deal first announced last August.
In June this year, the US soup and sauces giant said it would “explore strategic alternatives” for Noosa, which manufactures and markets Australian-style yogurt products made out of whole milk.
The sale includes all Noosa yogurt trademarks and a manufacturing facility in Bellvue in Colorado.
As part of the deal, approximately 240 Noosa employees are expected to join Lakeview Farms.
The company said the acquisition extends its reach into the “$8bn US yoghurt category”.
Lakeview Farms said that the deal will enhance the “size and scale” of its refrigerated portfolio.
The company, owned by private-equity firm CapVest, added the acquisition of the Noosa could open “new opportunities and strengthen” the company’s growth potential in the US market.
Lakeview Farms CEO Tom Davis said: "Noosa fits perfectly into our portfolio of premium refrigerated food brands and offers Lakeview a unique opportunity to step into the high-growth yogurt category. Noosa also brings us a team with deep talent and expertise and a state-of-the-art manufacturing facility.”
Asked to provide data on the growth of the US yogurt market, Lakeview Farms pointed to figures supplied online by Statista, which said "yogurt sales revenue came to over $8bn in 2023" and the "average annual consumption of yogurt in the US went up by over 9% between 2000 and 2023".
According to Campbell, Noosa generated net sales of $177m in the 12 months ending October.
Mick Beekhuizen, the president of Campbell’s meals and beverages arm, said: “Noosa is a well-run business supported by a great team. We are pleased that its new home will be with a buyer with a strategic focus on the refrigerated category. The sale will drive greater focus on our portfolio of leadership brands.”
Subject to necessary closing conditions, the transaction is anticipated to close in the first quarter of 2025.
Campbell, known for brands like Cape Cod and Goldfish, saw its sales decline 1% on an organic basis to $9.6bn in the year to 28 July. Adjusted EBIT rose 6% to $1.5bn. Adjusted EPS was up 3% at $3.08.
At an investor day held in September, Campbell unveiled a new set of long-term targets – organic growth of 2-3%, up from around 2% previously, an adjusted EBIT accretion of 4-6% and adjusted EPS progression of 7-9%.
The word soup is to be dropped from the Campbell company name as the group adopts fresh financial targets. Campbell Soup Co. will become The Campbell’s Company once approved by shareholders at a meeting this month.
