Campbell Soup CEO is confident that condensed products can turn a profit

Campbell Soup CEO Mark Clouse told CNBC̵[ads1]7;s Jim Cramer on Wednesday that despite the company’s mixed earnings report, he is confident that Campbell’s condensed products — especially the brand’s staples like chicken noodles and tomato — are timelessly profitable.

Clouse said Campbell’s soup sales have been better than before the pandemic, especially among millennial clientele, many of whom are aging and starting families. Even as more people begin to eat outside the comfort of their homes post-Covid, Clouse said demand for condensed canned soup remains strong.

“So are we better off than we were before the pandemic? We’ve seen more equity points, and it’s even stronger when you look at the all-important millennial consumer,” Clouse said. “In fact, I don’t see any indication that cooking as a behavior in the home is slowing down.”

But he added that even Campbell’s management had questioned the relevance of condensed soup to younger consumers.

“Especially in condensed, that’s always been a little bit, I think, a question for all of us — ‘Can we build relevance with younger consumers with a condensed soup business?'” Clouse said. “We’re seeing that cooking dynamic where we’ve increased the share again to go back over the last four years.”

Alongside its namesake soup products, Campbell also owns several well-known food and snack brands, including Pepperidge Farm, Snyder’s of Hanover, Lance, V8 and Prego.

Campbell reported net sales of $2.23 billion, which matched the consensus estimate, and the company did not raise its full-year forecast but said it expects to land at the high end of previous guidance.

Campbell shares fell 9% on Wednesday.