CAMDEN, N.J. (AP) - If your lunch still
consists of a bowl of Campbell's tomato soup and a grilled cheese
sandwich, chances are you grew up using a typewriter.
Generations of Americans
have moved on from Campbell's condensed chicken noodle and tomato soups
in search of heartier varieties with more sophisticated flavors. Now,
the world's largest soup company is racing to do the same.
Campbell Soup Co. last year
began a quest that led executives to a diverse group of cities
including Portland, Ore. and London to figure out how to make soups that
appeal to younger, finicky customers. In the year ahead, the
143-year-old company plans to roll out 50 products such as Moroccan
Style Chicken and Spicy Chorizo. The ingredients may surprise those used
to a plain bowl of chicken soup: tomatillos, coconut milk and shitake
mushrooms.
The new soups also won't
look like the big, gelatinous chunks that came in the steel cans that
built Campbell into an iconic brand. These soups come in plastic pouches
that are easy to open and heat up in a microwave in less than three
minutes.
The remake could be a
do-or-die task for Campbell. Overall canned soup consumption is down 13
percent over the past decade, according to the research firm Euromonitor
International, as fresh soups have become more widely available at
supermarkets and restaurants. And Campbell now has about 53 percent of
the market, down from 67 percent a decade earlier.
Campbell's changes also
illustrate how difficult it is for brands that appeal to older customers
to become relevant to Millennials. This group, defined as those ages 18
to through early 30s, is heavily sought after by companies and
marketers. But Millennials have little in common with their parents,
whether it's their tastes, eating habits or cooking methods.
"I grew up with salt,
pepper and ketchup," said Chuck Vila, who heads Campbell's customer
insights division, which surveys the marketplace for trends. "These guys
are playing around with really interesting spices from around the
world."
George Veszpremy, a
32-year-old music director at a radio station in Boston, has fond
memories of his mother sending him to school in the morning with a
thermos of Campbell's chicken noodle.
"As a kid, you eat it and
it's great. It served the purpose at the time," said Veszpremy, noting
that the soups were a cheap way for his single mother to give him a
quick, comforting meal.
But looking back, he said
he realizes that the soup wasn't the best quality - the noodles were
soggy and thin, the chicken pieces were minuscule and there were no
vegetables. Veszpremy said his tastes have evolved: He sticks to
homemade or the soup bar at the supermarket.
THE ELUSIVE MILLENNIALS
To understand what makes Millennials like Veszpremy tick, Campbell executives turned into anthropologists.
The company dispatched
executives to London, Nashville, Portland and other designated "hipster
hubs" to meet with younger consumers face-to-face. Dozens were recruited
to participate in "live-alongs," in which executives ate meals with
them in their homes, peeked in their pantries and tagged along on trips
to the grocery store.
In other cases, couples
were invited out to "eat-alongs" at trendy restaurants to talk about
food in a casual atmosphere. They were asked to bring their favorite
pantry items for discussion. Participants responded by bringing a mix of
spices and sauces typically found at ethnic grocery stores.
A staff of about a dozen
Campbell chefs traveled for inspiration as well. In New York City, the
group browsed in spice shops, bakeries and ethnic grocery stores. In
Boston, they even ducked into an Urban Outfitters clothing store, just
to get a better sense of the overall mindset of Millennials.
After a tour of New York
City's food trucks, Campbell's executive chef Thomas Griffiths even
began toying with the idea of incorporating kimchee - the pungent
pickled vegetable dish from Korea - into a soup. But he knows that will
be an acquired taste.
"With something like kimchee, well, that might take a little while," Griffiths said.
The field work led
executives to two seemingly divergent conclusions: First, cuisines once
considered exotic -Thai, Indian, Brazilian - have become the norm. At
the same time, years of dining out mean younger consumers aren't as
skilled at making meals from scratch, particularly when it comes to
those very ethnic flavors.
"They can't replicate the foods they enjoy when they go out," said Darren Serrao, who heads innovation for Campbell.
That realization inspired
Campbell's Go plastic soup pouches, which come in flavors such as
Coconut Curry, Creamy Red Pepper and Golden Lentil. Consumers tear open
the pouch, stick the bag in the microwave for about two-and-a-half
minutes then pour the soup into a bowl.
For older Millennials who
may just be starting families or advancing in their careers, the company
created Skillet sauces in flavors such as Green Thai Curry and Creamy
Chipotle. The directions are simple: Heat up some protein and
vegetables. Mix in the sauce. Serve with rice or pasta.
The idea is to give
consumers the sense that they're creating their own dishes, without them
having to shop for hard-to-find ingredients or do too much tedious prep
work.
And then there's the can.
Red and white with the distinctive cursive lettering - immortalized by
Andy Warhol -it has become a piece of Americana.
"For many millions of
people, the can is a very sensible package," said Mary Gregg, who heads
packaging for North America. "It's been around for years and people are
very comfortable with it."
But executives say with
younger consumers, a can just doesn't convey freshness. So the new Go
soups come in white pouches featuring colorful fonts and photos of
expressive, young faces. The Skillet sauces are meant to be a bit more
sophisticated; they come in black pouches designed to evoke the
chalkboard menus at sidewalk cafes.
But the new looks come with
a price. A can of Chunky soup costs about $2.30 and has a shelf-life of
about two years; the new pouches will cost about $3 and are good for
about half that time.
HEATING UP SALES
Campbell is counting on its
new soups to keep its brand relevant. While the company makes other
products like Pepperidge Farm baked goods and V8 vegetable juices, soups
account for half its revenue.
Still, executives remain
cautiously optimistic about the fate of the new lineup. When the company
reported its quarterly results earlier this week, Campbell executives
said they expect sales growth in fiscal 2013. But that increase is
expected to come from Campbell's recent acquisition of a premium juice
company, not from its soups, broths and sauces unit.
In the latest quarter, the
Camden, N.J.-based company's profit increased 27 percent as soup sales
rose for the first time in two years. But that was partly the result of
grocers running promotions and stocking up on low inventories as
Campbell prepares to raise prices.
The company was also up
against an easy comparison; in the year-ago period, soup sales had
fallen by 9 percent and the results were weighed down by restructuring
charges.
As for the new products
that are expected to be widely available at stores later this month, CEO
Denise Morrison said the company should have a better read on how
they'll fare after its fiscal first quarter.
"The consumer will let us know if we can be more exuberant," she said.
Executives are pushing on in the meantime.
When the company embarked
on its revival efforts about a year ago, Vila, head of the company's
insights division, said they wondered if they had lost an entire
generation of consumers. It turned out it wasn't that simple; he said
that consumers are still open to giving Campbell another chance, but
that it's up to the company to deliver.
"We haven't captured them
in terms of food, but we've hung onto them," Vila said. "They have
memories of Campbell. They're outdated, but they're there."