'Touch of Premium Indulgence,' Says Campbell's CEO, As 'Splurge-Worthy' Milano Cookies Defy Snack Slump

The snacks business of Campbell’s Co. CPB may be facing headwinds in recent months, but one particular brand is bucking the trend.

What Happened: During the company’s third quarter earnings call on Monday, Campbell’s CEO, Mick Beekhuizen, highlighted the standout performance of its Milano Cookies brand, which defied the broader slowdown in the company’s snacks segment.

The segment as a whole posted a 5% year-over-year decline in sales, but Milano premium cookie was up, and while the company does not disclose the actual sales figures for the brand, it does say that the product line “had the strongest household penetration gains” during the quarter.

Beekhuizen credits this to a “touch of premium indulgence” that continues to resonate with selective consumers, amid “tighter food budgets” and a broader shift towards “value.”

“Consumers are being more intentional with their discretionary snack purchases,” Beekhuizen notes, favoring products that either don’t stretch household budgets or deliver enough perceived value to justify a splurge.

The outperformance contrasts sharply with other snack brands in Campbell's portfolio, including Goldfish crackers and Snyder's of Hanover pretzels, both of which faced year-over-year sales declines.

The company's broader snack strategy is being reworked with a focus on core brand relevance, innovation, and price-pack architecture, rather than across-the-board promotions. Executives say that while inflation and consumer caution are pressuring the segment, targeted wins like Milano reinforce the case for premium offerings.

Why It Matters: The company mentioned during the call that consumers were turning to its brands for “value, quality, and convenience,” while also “favoring ingredients that help stretch tighter food budgets,” in light of the prevailing macro conditions.

Milano, nonetheless, stood out, highlighting the split in consumer behavior between value and luxury in recent quarters, especially as economic conditions tightened.

During its third quarter results, the company reported $2.47 billion, up 4% year-over-year, and ahead of consensus estimates at $2.43 billion. It posted a profit of $0.73 per share, ahead of analyst estimates at $0.66.

Price Action: Shares of Campbell’s Co. were up 0.62% on Monday, trading at $34.25, and are down 0.15% after hours, following its third quarter results.

According to Benzinga’s Edge Stock Ranking’s the company scores poorly across most core metrics, and has an unfavorable price trend in the short, medium, and long-term. Click here for some deeper insights into the stock.

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