Campbell’s at Barclays Conference: Strategic Focus Amid Challenges

On Thursday, 04 September 2025, Campbell’s Co (NASDAQ:CPB) presented at the Barclays 18th Annual Global Consumer Staples Conference 2025, highlighting its strategic initiatives amid a challenging economic environment. CEO Mick Beekhuyzen and CFO Carrie Anderson discussed both the opportunities and hurdles facing the company, including tariff headwinds and divestitures, while emphasizing investment in innovation and cost savings to drive growth.

Key Takeaways

• Campbell’s aims for organic growth of -1% to +1% in fiscal 2026, focusing on premiumization and health & wellness.
• Cost savings targets have increased from 3% to 5% of the cost of goods.
• Marketing spend is projected to be 9% to 10% of net sales to boost top-line growth.
• Tariff challenges are expected to impact earnings, with mitigation strategies in place.
• The Snacks division is anticipated to stabilize in the latter half of fiscal 2026.

Financial Results

• Organic Growth: Expected to range from -1% to +1% for fiscal 2026, with flat growth at the midpoint.
• Earnings Impact: Divestitures of Pop Secret and Noosa are projected to reduce EPS by $0.04.
• Tariff Mitigation: Tariffs contribute to a $0.40 decrease in EPS year-over-year, with a 60% mitigation strategy.
• Cost Savings: The Peak program’s target increased to $375 million, spanning fiscal 2025 to 2028.

Operational Updates

• Meals & Beverages: Continued growth driven by at-home cooking trends and brands like Rao’s. Surgical pricing strategies are in place to balance consumer value with tariff impacts.
• Snacks Division: Expected stabilization in the second half of fiscal 2026, with successful innovations like Milano Cookies driving growth. The salty snacks category shows potential for expansion.

Future Outlook

• Growth Strategy: Campbell’s is focused on sustainable profitable growth, leveraging its scale and creating a growth office to enhance capabilities.
• Marketing and Pricing: Aiming for a 9.5% marketing spend of net sales and implementing surgical pricing to maintain competitiveness.
• Long-Term Goals: The company acknowledges the lower end of its growth algorithm as more realistic given current conditions.

Q&A Highlights

• Rao’s Success: The brand is nearing $1 billion in revenue, with plans to expand its presence across stores.
• ERP Integration: Sovos ERP system implementation is expected to streamline operations, affecting shipment timings.
• Productivity Focus: Increased focus on productivity, with cost of goods savings rising to 5% to counteract tariffs.

In conclusion, Campbell’s outlined a comprehensive strategy to navigate current challenges while focusing on innovation and cost efficiency. For a detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - Barclays 18th Annual Global Consumer Staples Conference 2025:

Andrew, Interviewer: Great. Good morning. If you could find our seats, we’ll kick off our next session. Welcome back for our fireside chat with the Campbell’s company.

Still getting used to the new name. With us today are CEO, Mick Beekhuyzen and CFO, Carrie Anderson. Thank you both for being here. As a reminder, Campbell will not be holding a breakout following today’s fireside chat, just to remind everybody. So Nick, maybe a good place to start would be you’ve now been in the CEO role for about six months or so.

How has it been so far? While already very familiar, obviously, with the company having been in key leadership roles across the company, I guess are there any new learnings? How has your view of the company changed, if at all?

Mick Beekhuyzen, CEO, Campbell’s: Yes. First of all, Andrew, thank you for having us today. I really appreciate it. Thank you all for being here. We had so I came into the company originally as CFO.

Then I became President of Meals and Beverage, now CEO since a little over six months. If I look at the overall company, whom I’m obviously very familiar with, no big surprises. That being said, the environment obviously continues to evolve, which is something that in all these different roles has it’s been a very different environment throughout that six year time period. So maybe kind of the one thing is as CEO just really stepping back and knowing what we know, which is an amazing portfolio of brands and figuring out in this environment how can we make sure that we get back to that sustainable profitable growth. So nothing changed with regard to my perception of the overall portfolio, great portfolio of brands, if anything I see more and more opportunity now than I’m sitting in the seat that I’m in, And we just need to make sure that in this environment we capitalize on it.

Focus on the controllables and make clear that there are certain areas that we don’t control, but what are we going to do about it with the controllables. Yes.

Andrew, Interviewer: Thank you for that. Campbell reported fiscal fourth quarter earnings just yesterday, provided its initial outlook for the coming fiscal year. I guess broadly, what are the key couple of takeaways that you want investors to come away with? And after that, we’ll talk with Carrie a little bit about getting into some more of the details around guidance, but When just more broadly,

Mick Beekhuyzen, CEO, Campbell’s: I and you heard us talk a little bit about this, is first stepping back, the consumer is evolving and making sure that we as an organization, we realize that and we are very conscious about that evolution of the consumer, I believe is really important and you saw that in the framework that we talked about during the earnings call. And that’s really coming back to things like premiumization, flavor exploration as well as health and wellness and cooking comfort. And those are the trends that we are seeing with the consumer that are actually playing well with our portfolio. Now that being said, we need to make sure that we continue to evolve with our portfolio. What does that mean?

That means we need to make sure that we invest in our brands and you heard us talk a little bit about that as well as making sure that we have continued successful innovation. We’ve made progress on innovation. We need to make sure that we continue to do that across the board. So that’s probably more from an evolution of the consumer perspective. Then the other thing that is obviously out there right now, it’s we call it a dynamic operating environment.

And that’s coming back to obviously we have tariffs and we talked about that, we need to make sure that we as a result do as much as possible in order to help mitigate that. At the same time, we need to make sure we generate fuel for what I just talked about to invest in our brands. So how do we do that? We need to make sure that we continue to stay focused on productivity initiatives and you heard us talk about increasing the overall focus on that from 3% to 5% of cost of goods. And on top of it, we increased overall cost savings target really on the one hand to mitigate some of these headwinds that I just described but also to invest in our portfolio.

Great.

Andrew, Interviewer: Thanks for that. And then, Carrie, I guess maybe I was hoping we could dive a bit deeper on some of the key puts and takes on the outlook for fiscal twenty twenty six and maybe any detail on phasing, particularly as it relates to the fiscal first quarter.

Carrie Anderson, CFO, Campbell’s: Yes. Well, let me start with the top line. So our organic growth, we’re expecting a range of minus 1% to basically plus 1%. So the midpoint of that range is flat organic growth. And I would say as we think about the businesses, the continued momentum of Meals and Beverages, we’ve talked considerably about the at home cooking trends.

And so that momentum will continue for Meals and Beverages as we move into fiscal ’twenty six as well as stabilization of Snacks in the second half. So that forms essentially kind of the range for minus 1% to plus one organic growth. Now I’ll go to the bottom line, and then we’ll come back a little bit to the phasing piece. On the bottom line, we’ve got a few moving parts here. Obviously, we had a benefit of an additional week in fiscal ’twenty five.

So the basis of our growth for our guidance range is essentially taking fiscal ’twenty five and taking the additional week out. We have a divestiture, Pop Secret and Noosa, that we’re adjusting for. That’s about a $04 impact there. So if you adjust for that extra week, you adjust for the divestitures, essentially and then you look at the midpoint of our guidance range for EPS, it’s effectively about $0.40 down at the midpoint of the range. And I would say as you look at that decrease year over year of about that $0.40 range at the midpoint, about twothree of that is the tariff headwind that Mick talked about, again, working to mitigate that.

But for fiscal ’twenty six, we won’t be able to mitigate all of that. Our expectation is we’ll be able to mitigate about 60% of that, and that’s embedded in that guidance. And then the other onethree is the rest of the business. And I would characterize the rest of the business as and we talked a bit about this. Mick talked about investing in our brands.

So stepping up our marketing and selling within a 9% to 10% range, so at the midpoint, 9.5%. And also, we’ve got some reset of incentive compensation. And so all of those things are considered in that other basically onethree of the other difference there. Now regarding your question on phasing, the way I would look at it, and I’ll do it from a top line perspective because I think that’s easiest to do, we have some lumpiness, and most of that lumpiness is because of what we’re lapping from last year. But if you look at first half and second half, generally, I would expect to see some sequential improvement in the first half year over year and in the second half year over year.

Particularly for Snacks, I would say you’d see some it won’t be a perfect linear line, but I would say sequential improvement as we talk about, again, Snacks being stable reaching stabilization in the second half of the year. For Meals and Beverages, that’s where the lumpiness comes in. And so it’s really important that you understand what we’re lapping. In the second half of fiscal ’twenty five, if you recall, we did a lot of work on Sohu’s integration. One of the things we did there is we integrated it into our ERP system.

And so as a result of that, we saw some retailers pull forward some shipments in Q3 ahead of that implementation, and then those things reversed out in the fourth quarter. So we’re going to lap that as we move into fiscal ’twenty six in the back half of the year. And as it relates to Q1, I would say, look, Q4, we were at minus 3% organic net sales growth across the entire company, I would say we would expect modest sequential improvement. Still, I would expect our organic net sales in Q1 to be down, mainly for the reasons I just talked about. For Snacks, it’s going to be about that gradual improvement.

So still some pressure there in Q1, maybe sequentially a little better than Q4, but sequentially still down. And for meals and beverage, the other thing, there is some lumpiness in Q1. A couple of things. One, for Rao’s, we have some promotions shifting from Q1 into Q2, and that’s just effective of the way the calendar, the promotion calendar lands. And second, we had some benefits from weather last year with some hurricanes last year, so that benefited our Meals and Sauces as part of the business last year, and so we’re lapping that.

So I hope that gives you a little bit of framing of how we’re thinking about guidance.

Andrew, Interviewer: Yes. Thank you for that. Very helpful color. Maybe we can drill down to the segment level a little bit. Campbell’s, as you mentioned, looking for continued momentum in Meals and Beverages.

I guess what are the key drivers of the organic sales performance in this segment in fiscal twenty twenty six? Would you expect to be able for this segment to deliver positive year over year growth for the year? And I guess based on some prior year comparisons and some shifts, obviously, you talked about some of the lumpiness that obviously we’ll keep in mind as well. Do you want

Mick Beekhuyzen, CEO, Campbell’s: me to Yes, start off and then please. Can So if you look at fiscal twenty twenty five, one of the things that and I mentioned it earlier from an overall consumer perspective, you see that cooking and cooking at home has been a positive trend, and that’s definitely something that is playing right within part of our portfolio on the meals and beverage side. And you see that particularly if you step back and you look at the M and B portfolio, you see on the one hand, sure you see soup, but within that part of soup is also used as an ingredient, right? For instance broth, but also part of condensed is used as an ingredient. And so on top of it, we are having easy meal solutions with, for instance, Italian sauce with two amazing brands, right?

On the one hand, we obviously have a very strong foothold with Prego, but on the other hand, we also have Reyes now in the portfolio. And as you saw in Q4 Reos continued to grow pretty strongly. But you put that all together and you look at the consumer continuing to look for value and convenience and you combine that with the overall focus on cooking at home and exploration, that is something that we believe our Meals and Beverage portfolios fits very well with.

Andrew, Interviewer: Perfect. Maybe for soup, on the one hand, right, tariffs on tinplate and steel has led to the need for some pricing actions and other mitigating actions. On the other hand, the consumer obviously remains incredibly sensitive around value, and soup plays an important role certainly in supporting the consumer at times like these. Guess how do you balance these two dynamics, and what are you seeing in soup specifically in the competitive landscape at this point? Yeah.

Mick Beekhuyzen, CEO, Campbell’s: I agree, and I just mentioned that making sure that we provide value to the consumer is really important. Now value obviously is defined not solely by price. If you look for instance at our overall meals and beverage portfolio, arguably I personally think that Rao’s is one of the better values that we provide. It is providing an easy meal, and if you compare it, an easy meal at really high quality and really that premium at home experience, which by the way, I cooked it off to myself, you can’t fail, right? You always have success, which is really important when you cook for a household.

And and if you look at the alternatives, particularly if you order in for instance, some of those comparisons have been made in the past that’s at a way higher price point. And if anything, actually those price points have been moving up. So value is something that really goes back to your earlier point. We really got to make sure we look at the details across our portfolio. If I look at Soups specifically, it plays the same parts within that, where we have on the one hand premium offerings like Real Soup, but also Pacific.

And on the other hand, we also have areas like for instance on the condensed side, where it provides an ingredient, where it arguably also provides a lot of value, because if you were to try to put all these different pieces together yourself, you would also have a you very clearly see that you’re providing good value at the price point. Now back to pricing specifically, and some of the actions that we’ve been taking, we are very surgical about the approach. We take into account everything that I just talked about, in making sure that we connect it back to the consumer, we look at the value that we’re providing to the consumer, but at the same time, once we have implemented pricing, we are making sure that we stay very close to how is it responding. The other thing is that the way that we’ve been thinking about it is that price points throughout the year also matter, and making sure that during the moments that really matter, if you want to call it that, we often refer to it as key drive periods, We want to make sure that we have a competitive price point, like for instance broth over the holidays is a good example.

So long story short, some surgical pricing taking into account all these different considerations and in the meantime, making sure that we stay on top of it and that we course correct if necessary.

Andrew, Interviewer: And then thinking longer term, getting soup right has always been critical to the success of Campbell. And although soup has been removed from the name, right, its importance remains. I guess where do things stand on soup if we’re thinking more broadly? Is it now in the kind of place where you want it to be and now it’s just managing it? Or are there is there still more work to be done to sort of set up the foundation so that it can ultimately continue to deliver more consistently?

Yes.

Mick Beekhuyzen, CEO, Campbell’s: Having been the Meals and Beverage President, I obviously I wholeheartedly agree. Just having spent a lot of time on soup over the past couple of years, it’s really important for Campbell’s despite the fact that it’s no longer in the name. We stay very focused on it. I think the other thing that we’ve learned and you’ve been following Campbell’s longer than I have, but if you look at the company itself, we’ve actually realized that we need to make sure that we stay close to soup. You’ve got to continue to invest in it and we’ve got to make sure that we continue to nurture the brands in that portfolio.

You can’t take your eye off the ball. So we’re staying very focused on it and we’re going to make sure that we continue to evolve that portfolio with the consumer. If I look at where the portfolio is right now, I look at it probably back to some of the earlier commentary I look at it in two pockets. On the one hand, we have soup as an ingredient, which is coming back to broth, which done really well.

Again, on broth, we have two brands. On the one hand, we have Swanson. On the other hand, we have Pacific. Both of them, one of them more of a lower price point offering, the other one more of a premium price point offering also with organic orientation and focus that’s being Pacific. And then so within the soup as an ingredient pocket, we also have condensed.

And condensed, I’ll call about half of the condensed business is used as an ingredient for cooking. Think about cream of mushroom, think about cream of chicken, cream of chicken with herbs. Those types of ingredients are back to my earlier comment, very hard to replicate, but they make amazing meals and they provide as a result great value and we’ve continued to see growth within that particular pocket of condensed soup. Now the other piece is, I’ll call it more convenience driven, which is ready to serve soup. On the ready to serve soup, we are seeing the premium offerings, whether it’s Reyes or Pacific, we’re continuing to see growth there.

I feel very good about that, if anything, continued opportunity. Chunky has done really well. We’ve obviously over the past, call it five, six years continue to focus on reigniting that brand and the team has done a great job around that. And I believe we’re going to continue to be able to grow within the area and the offering that Chunky provides. If I then look at the broader ready to serve soup, there’s a lot of onesies, twosies or areas within that.

We took some action on discontinuing about now a little about a year ago, well, yes, which started to focus that portfolio. I still think across that portfolio, we got a little bit more work to do to make sure that we really provide good value.

Andrew, Interviewer: Got it. Great. Maybe, I guess, do you view the runway for growth for the Rails brand? What are the biggest areas of opportunity? And are there still distribution opportunities available?

Mick Beekhuyzen, CEO, Campbell’s: Yes. First of all, we are super excited to have Rails within the portfolio. We obviously did the acquisition when I was President of Meals and Beverage of the Meals and Beverage division. I think it fits really well within Meals and Beverages, truly complementary, making sure that you have on the one hand Prego, which is call it more the mainstream offering and at the same time you have Rails, which is that premium offering. If you look at the past quarter, you saw that we grew in high single digits.

I believe that you’ve seen some of these comparisons to Prego and you see that there’s continued to be a lot of upside opportunity if you do that comparison. Now specifically with regard to rails, when I step back and I look at it, you have high single digit household penetration. You have extremely good repeat rates within the business. We call as I mentioned before, like SaaS is boss, we always say. SaaS still has a lot of runway as a result through innovation, but also through some incremental distribution opportunities.

If I look more broadly at the Rails brand, Risa and I often have conversations about, hey, how can we continue to stretch the brand across the store. So long story short, we’re close to $1,000,000,000 on rails and encouraging the team to quickly fly through that Rails 1,000,000,000 delivered, I think, pro form a revenue growth up high single digit in fiscal twenty twenty five. You’ve spoken about sort of

Andrew, Interviewer: the business being more of a mid- to high single digit grower over time. I guess for fiscal twenty twenty six, would you anticipate rails still remaining at that high single digit level? Or is that or is it likely to be more in the long term range? Well, listen, we’re always

Mick Beekhuyzen, CEO, Campbell’s: we as a team are always very ambitious, and we want to make sure that we continue to drive growth across that brand. As I just said, I’m a really big believer. When I think about the range of mid to high single digit, think that’s the right range.

Andrew, Interviewer: Maybe shifting gears a little bit to Snacks. I guess you’re looking for the business to sort of stabilize in the back half of the year. Maybe first off, does that mean Snacks will stabilize at some point in the second half? Or could Snacks be sort of flat in the second half? And then just more, what gives you the confidence that you can stabilize Snacks that will ultimately come to fruition?

I guess how much of the improvement is sort of easier comparisons versus, let’s say, fundamental improvements? And how much maybe is category related versus better competitiveness, as you’ve talked about?

Carrie Anderson, CFO, Campbell’s: Yes. I’ll start there and then turn it over to Meg to give some more color and context on your question around categories and assumptions there. At the midpoint of our range, again, we’re expecting about flat organic growth across the company. And I would say for Snacks, again, stabilization in the second half. So the anticipation there is that you’d see some amount of category stabilization as well that will be beneficial as we look to stabilize our own business within that.

I would say, again, gradual improvement as we move through the year. But I would say at the midpoint, we would expect to return to some growth modest growth in the second half of the year as part of that midpoint of that guidance range.

Mick Beekhuyzen, CEO, Campbell’s: Helpful. I look at our snacking business, so switching gears from MMB to snacking, great portfolio of brands. And I know we often talk about this, but if you look at and maybe this is helpful is just stepping back for a second, 16 leadership brands, right, eight in Meals and Beverages, eight in Snacks. We’ve been very focused over the years and making sure that we have brands that we can truly be proud of, right? Over the past six years, we divested I think seven brands that we believed are non strategic for our portfolio and we obviously added Rails to it, which we believe will create value for the enterprise.

Now within the eight brands within the snacking portfolio, positioned. So that’s one. I think the second thing is particularly when I look at that framework that we described earlier with regard to the consumer, and these brands have a reason to win within all these different areas. And that gives me a lot of confidence and you see proof points. Listen, we still got a lot of work to do, we got to make sure that we stay on it, we got to make sure that we execute.

You hear me very often talk about it, but you look for instance what we did in Milano Cookies, with Milano Cookies. Milano Cookies with the launch of white chocolate, Milano’s.

Andrew, Interviewer: I just tried the chai latte by the way.

Mick Beekhuyzen, CEO, Campbell’s: Okay, good. Do you like it?

Andrew, Interviewer: I do. Good.

Mick Beekhuyzen, CEO, Campbell’s: Do. Did you eat the whole pack or honey?

Andrew, Interviewer: Once you start, it’s hard to stop.

Mick Beekhuyzen, CEO, Campbell’s: That’s what we see in the numbers. So Milano cookies was up like 27% this past quarter. And it is not only the launch of the Milano white chocolate that’s a big success, but it also halos to the broader brand. And that is I think the power of innovation and it also shows you how important innovation is. It also shows you that despite the fact that the overall cookie category is down, we actually can grow nevertheless with the brands that we have, because that growth in Milano basically lifted the overall cookies portfolio that we have.

So specifically to your question about category versus consumption growth, a little bit of category stabilization in the second half, particularly as we’re starting to get easier comps and then further fuel that with incremental execution on our end.

Andrew, Interviewer: Maybe what are you seeing from the specifically the salty snack category at this point? And what’s the plan to sort of better compete in this current environment?

Mick Beekhuyzen, CEO, Campbell’s: Salty, again, we have great brands. If I look for instance in the on the chip side with Kettle, Cape as well as Late July and then on the pretzel side with Snyder’s of Hanover, but also Snack Factory, you see that we play in different parts of these categories, and if you really step back, you see that we are actually participating in the subcategories where the demand is. There’s growth in kettle chips, there is growth in pretzels, and we have a right to win within all these different areas. Now that doesn’t mean that we don’t have work to do. You see for instance on the pretzel side, we have launched some great innovation with Pappa’s that is really helping and lifting Snack Factory.

It also allows us to participate in a different part of grocery store, because Snack Factory was obviously in the deli aisle, now this is in the salty aisle. And it allows us to really start elevating a brand like Snack Factory. If you look for instance at late July on the chip side, we have still a lot of distribution opportunities and the team is working on that. When I step back and I look at all those different pieces, it comes back to making sure that we support our brands, make sure that we have the right innovation, but it also comes back to price pack architecture. Do we have the right price points for the right occasion, like for instance, multipacks is a good example within that salty space.

Some other market participants have already grown significantly in there in that space. We still have a long way to go and a lot of opportunity. That then also comes back to continued focus on in store execution and distribution and working with our DGSD partners.

Andrew, Interviewer: Campbell’s targeting marketing spend to be in the 9% to 10% of net sales range. I guess where do you expect to where would you expect to be in this range in 2026? And I guess what gives you the confidence that, that level of marketing is sort of sufficient to drive the desired top line outcome?

Carrie Anderson, CFO, Campbell’s: Yes. And I’ll start. Again, at the midpoint of the range, I mentioned this earlier, around 9.5% is what we would assume at the midpoint. And I would say we’ll gradually phase into that. So you won’t start maybe at that rate.

It will still be year over year higher even in Q1, but we’ll phase into that. But I would say for the overall year, I would say 9.5%. And certainly, there are going back to something what Mick said is certain drive campaigns obviously are important from even a marketing support standpoint, whether it’s new innovation launches or whether it’s the holiday season. Those are areas, particularly in Q2, we will see a step up and even into Q3.

Andrew, Interviewer: And Carrie, I know you touched on this on the call, but how are you thinking about the need for sort of broadly for corporate level, the need for price investments in fiscal ’twenty six?

Carrie Anderson, CFO, Campbell’s: Yes. So as part of our overall guidance, we did talk about, for fiscal ’twenty six, essentially a modest favorable net price expectation relative to fiscal ’twenty five. And I would say I’m going to go back to something, again, Mick said on surgical pricing. And so I see the promotion environment relatively stable. So I think what’s driving that favorable net price is really on the pricing side.

And as we think of a couple of things, and both divisions will benefit from slightly favorable net price for different reasons. For snacking division, it’s around some surgical pricing as it relates to inflation, specifically cocoa and eggs. And so you’ll see some of that pricing there. And then on the M and B side, if we go back to the Section two thirty two tariffs, 60% of our tariff gross impact is coming from the steel aluminum tariffs. So that disproportionately impacts Meals and Beverages.

We have a number of levers that we’re pulling there. And the net pricing is one of the levers, one of the pricing levers that we pull, but it’s not the majority. Certainly, all the other levers we talked about, whether it was inventory management, supplier negotiations and product optimization and productivity savings are all part of that. But surgical pricing is and look, again, on our soup cans, the steel aluminum, it’s a derivative of steel. It’s called tinplate.

The domestic supply in The U. S. Is essentially capped. And so we’re forced to go to overseas suppliers. If there was more domestic capacity, we’d certainly source it from The U.

S. But as a result of that, we’re limited. We’re limited to where we can source a template. And as a result, we do have to look at some surgical price increases, and so that’s built into our plan as well.

Andrew, Interviewer: And I know Campbell increased its cost savings program from $250,000,000 to $375,000,000 I guess what’s enabled the company to further this program? And where are the incremental savings coming from?

Carrie Anderson, CFO, Campbell’s: Yes. So last year, we announced our enterprise cost savings program. It’s called Peak. And at the time we announced it, was $250,000,000 spanning from fiscal ’twenty five to fiscal ’twenty eight. And there’s four broad categories that, that savings comes from, the first of which is Sogus integration the second of which is network optimization and then we’ve got IT and org effectiveness and then the last area is indirect procurement savings.

I would say we’ve seen some acceleration of that savings that gives us confidence to take the program up. In fiscal ’twenty five, we delivered 145,000,000 of enterprise cost savings, a lot of that acceleration coming from the integration of Sovos. That will continue to be a source of savings as we move into fiscal ’twenty six. If you recall, I mentioned the ERP implementation in the end of the third quarter, beginning of the fourth quarter. That will unlock savings in fiscal ’twenty six as it relates to some back office areas as we integrate the teams.

And so that will be a continued source of savings along with additional network optimization initiatives. I’d say in the beginning part, in fiscal ’twenty five and ’twenty six, a majority of that savings or a larger portion will be in the SG and A space. And as you move through the course of that fiscal ’twenty six to ’twenty eight, you’ll start to see a shift of more of that being on the gross margin side in comps.

Andrew, Interviewer: Great. Thank you. Nick, maybe with our sort of remaining moments. Thinking about the long term algorithm for a minute. This time last year, right, Campbell hosted an Investor Day, laid out its three year strategy and provided some financial targets.

A lot has changed in that year, and the operating environment obviously has remained challenged for longer than most would have expected. You’re now CEO of the company, rather than leading Meals and Beverages. I guess based on where we are today, right, how is Campbell viewing its strategic plan and growth targets? What, if anything, has changed? And maybe what’s not changed for Campbell in terms of sort of strategy and financial targets?

Yes.

Mick Beekhuyzen, CEO, Campbell’s: As you’re highlighting, obviously a dynamic operating environment, lots going on right now. We just talked about it over the past call it thirty minutes, but we’ve been talking about it since I’ve become CEO. The environment continues to evolve. That being said, as I said earlier, it’s like we are very focused on what we control. And also when I look at the opportunity that we have, I’m a very big believer in the ability to get back to sustainable profitable growth for Campbell’s.

And particularly when I look at the overall portfolio that we have and the opportunity that we have within that, right. I mean, we talked a lot about the two divisions, but one of the things that you’ve seen me do since I become CEO, I actually believe that with being a $10,000,000,000 company, we should make sure that we take advantage of scale across the board. Also particularly because we’re North American focused, right. So having the ability to focus on, call it one geographical region, combine that with a portfolio of brands that I think are the best within the overall or as good as it gets probably across the overall CPG landscape, you have a portfolio that you should be able to continue to grow at a sustainable level. So I feel good about us working towards that and the actions that we’re taking, like for instance with creating a growth office that is now making sure that we have the right capabilities across the board to get back to that sustainable profitable growth.

At the same time, I believe what Kerry just talked about that there’s continued opportunity around one productivity, but also on the cost savings side. So I. E, we should be able to get to that consistent growth on the top line and have a little bit better flow through. If I look specifically at the overall algorithm that we communicated at the end of last year, I’d probably say that the lower end of that range feels more realistic where I sit right now.

Andrew, Interviewer: Yes, makes sense. Good. All right. I think that about does it. We’re out of time here.

Thank you for being here. Please join me in thanking Mick and Carrie for being here.

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