Campbell Soup – No Growth For You!

Here are all the amazing soup slogans Campbell Soup has given us over the decades:

Soup is still good food.

Delivering it Campbell Soup way (via cans)…not so much (at least in the eyes of Wall Street).

Looking at a one year chart of Campbell Soup you would think that Trump and Wilbur Ross hate soup:

Campbell Soup says that the steel tariffs hurt them.

It’s more likely that GrubHub hurt them than tariffs.

Here is a chart of the two (thanks Charlie):

Last year a few really smart software CEO’s who like to trade were calling me for my opinion on shorting GrubHub (it was near $40). I remember saying the most they could make was $40/per share. I think I talked them out of it, but I should have told them to get long Grubhub and short all the consumer packaged goods companies like Procter and Gamble and Campbell Soup.

The world is changing and so are food habits. Rachel and Max eat Ramen noodles all the time. Maruchan (the Ramen noodles you see everywhere) is a private company in Japan.

Campbell Soup is in a lot more trouble if they are blaming their soup problems on Trump and Ross.

Meanwhile, the private equity shops are licking their chops over the soup panic of 2018.

Also published on Medium.