Campbell‘s Soup Company known as the world’s largest soup maker is going to close two of its plants in the U.S. due to a change in consumer’s lifestyle. This is to say, they prefer fresh and organic products.

Campbell’s canned soup consumption has fallen to 13% when compared to a decade ago and also market shares have fallen from 67% to 53%. This is because of the rise of new technologies like pouches and tubs, and increased competitions  at supermarket shelves. In the 1970s there were only 5000 products but right now there are 50,000 similar products. So consumers have been given many other products to choose from besides Campbell’s.

This is very similar to the issue that we looked at in class the “Telus” case because the causes are the same for Campbell’s situation. Campbell’s is becoming more unattractive to consumers because of increased substitutes like fresh soups or pre-packaged soup ingredients which are easily found in supermarkets like T&T. Increased rivalries like Healthy Choice, Progresso,TrueSoups by Heinz in which these companies are also providing consumers with similar products. So, these are the reasons why Campbell’s is losing its attractiveness compared to the past.