Snacks have completely different meanings for kids and adults. When we are small, it’s something tasty that we are not allowed to have every day, making it even more delicious. As adults, it’s nostalgia for those innocent times when we could find true happiness in a bag of chips.
However, the nostalgia play is becoming more challenging for the packaged goods companies as inflation fatigue and the rapid rise of appetite-suppressing GLP-1 medication affect its sales.
“Early evidence suggests that individuals using GLP-1s spend significantly less money at the grocery store, shifting their purchasing habits away from snacks, alcohol, and carbohydrates while also increasing demand for high-protein and nutrient-dense foods,” according to a University of Illinois study.
In 2025, about 10 million Americans have used GLP-1 medications, and that number is estimated to reach 25 million in 2030, reported Forbes.
More importantly, aside from shifts in weight loss and eating trends, inflation-weary consumers are reducing their spending.
Consumers are actively abandoning major name brands that got too expensive in recent years, pivoting aggressively toward cheaper store brands (private label) to protect their wallets, according to data from SNAC International.
These new trends are forcing snack giants, such as the powerhouse behind Goldfish and Late July, to make some tough decisions.
Campbell’s CEO hints some snacks might soon disappear
The Campbell’s Company reported on June 8 its results for its third quarter fiscal 2026 ended May 3, 2026, disclosing net sales of $2.37 billion, representing a 4% year-over-year drop.
“Our third quarter results were generally in-line with our expectations but remained under pressure, reflecting top-line softness and inflation-driven margin headwinds,” stated Campbell’s CEO Mick Beekhuizen.
Salty Snacks that make up around one-third of the Snack business saw retail sales decline by 6.2%. Chips consumption dropped 4.5%, reflecting a sequential improvement, while pretzels performance stagnated.
More importantly, operating earnings dropped 32%, due to “lower gross profits, reflecting elevated cost inflation, other supply chain costs, and volume deleverage.”
In prepared remarks, Beekhuizen noted that the company performance remains “well below expectations.”
“This will involve some tough decisions, and may include rationalizing our product portfolio, reallocating and prioritizing investment for certain brands, and consolidating nodes within our network. But these are necessary actions to strengthen our core while improving the long-term growth trajectory and margin profile of this business.”
Beekhuizen didn’t specify which brands may be affected, but he offered insights into the results and what the company’s next moves are.
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Campbell’s plans new prices and snack sizes
The CEO further explained that even though snacks’ overall performance needs to improve, the company has already made progress. For example, Goldfish crackers with real cheese, no artificial flavors and zero trans fat, showed stable sales for the second quarter in a row as the company promoted the product to families with children.
Goldfish sales may reduce pressure on the brand compared with weaker-performing snack categories.
So, what is Campbell’s planning to do?
Beekhuizen added that it sees the most opportunity in its salty snacks portfolio. “To reignite growth, our salty brands need to strengthen their core with bigger and bolder ideas that are sustainably supported by higher levels of marketing. We need the right pack-sizes at the right price points to win, with consumer-led innovation differentiated from competition.”
The CEO stressed plans to “tighten our assortment, sharpen price-pack architecture,” noting that these initiatives are in the company’s control and already underway.
“This process will take some time, but we are committed to turning around this business,” Beekhuizen said.
Campbell’s market-leading brands:
- Campbell’s
- Cape Cod
- Chunky
- Goldfish
- Kettle Brand
- Lance
- Late July
- Pace
- Pacific Foods
- Pepperidge Farm
- Prego
- Rao’s
- Snack Factory
- Snyder’s of Hanover
- Swanson
- V8
Source: Campbell’s
Consumer spending trends support Campbell’s strategy
The company’s results and transformation plan align with the broader industry shifts. In fact, Circana’s recent report confirmed that “value-conscious consumers are not indiscriminately trading down as much as they are being intentional about their purchases by opting for smaller packs, variety packs, and lower entry points.”
Moreover, American consumers have expressed concern about the cost of living.
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“Rising prices remained the most frequently cited concern, increasing by six percentage points from the previous quarter to 52 percent of consumers, while concerns about the ability to make ends meet also rose,” reveals McKinsey & Company’s consumer sentiment report.
Deloitte’s 2026 Retail Industry Global Outlook also recently confirmed that consumer trading down trends are here to stay, further rationalizing Campbell’s new strategy.
“Nearly seven in 10 retail executives surveyed agree that behaviors such as trading down, shopping value channels, or swapping convenience for savings represent a structural change, not a temporary response to inflation,” revealed Deloitte.
Campbell’s is not the only company adjusting to current consumer habits. “A handful of companies, including PepsiCo, General Mills and J.M. Smucker, have found success in luring consumers back after rolling back prices for some products,” writes Food Dive.
Analysts react to Campbell’s results and new strategy
A number of analysts have looked at the big-picture risk, downgrading Campbell’s financial outlook.
In March 2026, S&P Global Ratings revised its outlook on Campbell’s to negative on lower earnings guidance. “The negative outlook reflects ongoing performance challenges, particularly in the company’s snacks business that we believe will persist for at least the next 12 months.”
While S&P Global Ratings project the challenges to persist for a while, Erin Lash, senior director of consumer equity research at Morningstar, said in a research note that Campbell’s “is taking the right steps to restore growth” in snacking, reported Food Dive.
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