Campbell Soup Plans Sale Of Fresh Foods And International Divisions Amid Drop In Revenue

campbell company — Campbell Soup announced Thursday plans to sell several of its fresh food and international divisions. Cans of Campbell's soup are pictured on Nov. 21, 2017 in San Rafael, California. Justin Sullivan/Getty Images

Food giant Campbell Soup Co. plans to sell its international divisions and its refrigerated food business in the wake of weak sales.

The soup maker announced Thursday that it looks to divest those two units, which both bring in $2.1 billion in annual revenue. They include brands such as Bolthouse Farms, and Garden Fresh Gourmet. The company said it also plans to focus primarily on its U.S. market of beverages, snacks, and meals.

Bolthouse Farms produces health-conscious drinks while Garden Fresh Gourmet makes salsa, hummus, and refrigerated soups. Campbell’s international business consists of Tim Tam cookie maker Arnott's and Kelsen Group.

According to MarketWatch, citing people close to the matter, Campbell will use proceeds from the deal to cut down its debt.

The decision comes as Campbell, which has a market value of about $12 billion, per Reuters, has been struggling with both internal turmoil and low sales numbers. Shares of the company have declined 20 percent over the past year, CNN reports. Campbell’s longtime CEO Denise Morrison also announced her retirement in May and was replaced by Interim CEO Keith McLoughlin.

"The board concluded that this current plan right now is the best one to maximize value," McLoughlin told Reuters in an interview regarding the move. "Having said that, the board remains open to alternatives that could create more value for the shareholder."

McLoughlin, who served as an independent director on Campbell’s Board of Directors since 2016, said the company was moving toward making stronger profits going into next year.

"Our new leadership team will concentrate on significantly improving operational discipline through a rigorous management model that aligns the enterprise from strategy through execution," he said in a statement. "We are moving forward with a sense of urgency to complete these changes in fiscal 2019, setting the foundation for sustainable, profitable growth in fiscal 2020 and beyond."