VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★

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Tuesday, December 30, 2025

The Campbell's Company

CPB · The Nasdaq Stock Market LLC

Market cap (USD)
SectorConsumer
CountryUS
Data as of
Moat score
61/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

The Campbell's Company is a North America-focused branded food company with two reportable segments: Meals & Beverages (soup, simple meals and beverages in U.S./Canada retail and foodservice) and Snacks (branded snacking products in U.S. retail, plus Latin America retail). The core moat is brand-driven: the company emphasizes the material importance of its trademarks and competes on brand recognition, taste and innovation. Distribution execution matters because sales run through large retailers (including Walmart) and Snacks uses a direct-store-delivery model. Operationally, multi-year cost-savings and supply-chain productivity programs support margins. Key counter-pressures are retailer bargaining power, private-label competition, and input-cost/tariff volatility.

Primary segment

Meals & Beverages

Market structure

Competitive

Market share

HHI:

Coverage

2 segments · 8 tags

Updated 2025-12-30

Segments

Meals & Beverages

Branded shelf-stable meals, soup/broth, sauces and beverages (retail + foodservice)

Revenue

59%

Structure

Competitive

Pricing

moderate

Share

Peers

KHCGISCAGSJM

Snacks

Branded snacks (cookies, crackers, pretzels, chips and related snacking products)

Revenue

41%

Structure

Competitive

Pricing

weak

Share

Peers

PEPMDLZKGIS

Moat Claims

Meals & Beverages

Branded shelf-stable meals, soup/broth, sauces and beverages (retail + foodservice)

Revenue share (net sales $6,050M of $10,253M) and operating profit share (segment operating earnings $1,076M of $1,636M) computed from FY2025 Form 10-K segment table (year ended 2025-08-03).

Competitive

Brand Trust

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence

Iconic pantry brands (e.g., Campbell's, Swanson, Prego, Pace, V8, Rao's) support consumer preference and retailer shelf allocation.

Erosion risks

  • Trade-down to private label in inflationary periods
  • Brand damage from quality/safety incidents
  • Shifts toward fresh/perimeter-store eating

Leading indicators

  • Net price realization vs inflation
  • Volume/mix in soup, broth and sauces
  • Household penetration and repeat rates

Counterarguments

  • Many meal categories are price/promotion driven and consumers can switch brands quickly
  • Private label can narrow the perceived quality gap at a lower price

Distribution Control

Supply

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence

Broad multi-channel distribution (grocery, mass, club, dollar, e-commerce, foodservice) supports reach; large retail relationships matter but are not exclusive.

Erosion risks

  • Retailer consolidation increases negotiating leverage
  • Shelf-space reallocation toward private label
  • Channel shift to value/dollar and e-commerce compresses pricing

Leading indicators

  • ACV distribution and shelf-space trends
  • Trade spend as % of sales
  • Top-customer concentration

Counterarguments

  • Retailers can delist branded products and expand private label, limiting any 'control'
  • Category growth is mature; incremental distribution may be costly

Operational Excellence

Supply

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 3 evidence

Multi-year cost-savings and network optimization programs support margin resilience amid commodity/tariff volatility.

Erosion risks

  • Input inflation/tariffs outpace productivity gains
  • Execution risk in network optimization and IT changes
  • Labor disruptions or plant downtime

Leading indicators

  • Gross margin trend
  • Cost savings realized vs plan
  • Service levels (OTIF) and fill rates

Counterarguments

  • Larger CPG peers can match or exceed procurement and manufacturing scale
  • Cost savings can be competed away via higher trade/promo spending

Snacks

Branded snacks (cookies, crackers, pretzels, chips and related snacking products)

Revenue share (net sales $4,203M of $10,253M) and operating profit share (segment operating earnings $560M of $1,636M) computed from FY2025 Form 10-K segment table (year ended 2025-08-03).

Competitive

Brand Trust

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence

Leadership snack brands (e.g., Goldfish, Pepperidge Farm, Snyder's of Hanover, Cape Cod, Kettle Brand) support repeat purchase and shelf presence.

Erosion risks

  • Private label share gains in value channels
  • Health/wellness shifts reduce demand for traditional salty snacks
  • Brand impairments and SKU rationalization signal weakening franchises

Leading indicators

  • Volume growth for leadership brands
  • Promotional intensity and feature/display rates
  • Brand impairment charges

Counterarguments

  • Snacks are highly substitutable and promotions can dominate brand preference
  • Mega-competitors with larger ad budgets can outspend and out-innovate

Distribution Control

Supply

Strength: 4/5 · Durability: medium · Confidence: 3/5 · 2 evidence

Direct-store-delivery (DSD) in Snacks can improve in-store execution and shelf management versus warehouse delivery.

Erosion risks

  • High distribution/route costs pressure profitability
  • Retailers push more categories to warehouse delivery
  • E-commerce growth reduces the advantage of in-store execution

Leading indicators

  • DSD route cost per unit
  • On-shelf availability and service levels
  • Retailer authorization for DSD programs

Counterarguments

  • DSD is not exclusive and can be replicated by other snack incumbents
  • If retailers prioritize lowest net price, execution advantages may not translate into share

Operational Excellence

Supply

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence

Supply chain productivity and company-wide cost savings initiatives partially offset inflation and fund marketing, but benefits can be competed away in promotions.

Erosion risks

  • Commodity and labor inflation
  • Underutilized plant capacity if volumes decline
  • Complexity from portfolio changes and integration work

Leading indicators

  • Snacks segment margin trend
  • Manufacturing utilization and scrap rates
  • Cost savings realized vs targets

Counterarguments

  • Frito-Lay/other large peers have superior scale and route density in many snack subcategories
  • Productivity gains may be offset by higher trade spend to defend share

Evidence

sec_filing
The Campbell's Company Form 10-K (FY ended Aug 3, 2025) - Trademarks and Technology

We believe our trademarks are of material importance to our business.

Management frames brand/IP as materially important, consistent with a demand-side brand moat.

sec_filing
The Campbell's Company Form 10-K - Principal brands protected by trademark law

We believe that our principal brands, including Campbell's, Prego, Rao's, Swanson and V8, are protected by trademark law.

Shows long-lived brand assets are legally protected in major markets (supports sustained brand differentiation).

sec_filing
The Campbell's Company Form 10-K - Customers and channels

Our products are generally resold to consumers through retail food chains, mass discounters, club stores, dollar stores, e-commerce and other retail...

Documents breadth of distribution channels that underpin shelf presence and availability.

sec_filing
The Campbell's Company Form 10-K - Customer concentration

Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 21% of our consolidated net sales in 2025.

Supports Walmart as a key customer and highlights retailer concentration in go-to-market.

sec_filing
The Campbell's Company Form 10-K - Multi-year cost savings initiatives (completion and savings)

We generated total pre-tax savings of approximately $950 million.

Evidence of sustained execution on cost transformation initiatives that can lower unit costs.

Showing 5 of 13 sources.

Risks & Indicators

Erosion risks

  • Trade-down to private label in inflationary periods
  • Brand damage from quality/safety incidents
  • Shifts toward fresh/perimeter-store eating
  • Retailer consolidation increases negotiating leverage
  • Shelf-space reallocation toward private label
  • Channel shift to value/dollar and e-commerce compresses pricing

Leading indicators

  • Net price realization vs inflation
  • Volume/mix in soup, broth and sauces
  • Household penetration and repeat rates
  • ACV distribution and shelf-space trends
  • Trade spend as % of sales
  • Top-customer concentration
Created 2025-12-30
Updated 2025-12-30

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

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