Campbell's says tariff price hikes pressuring some soup sales

Driving the news: Campbell's said its ready-to-serve soups — including Chunky and Homestyle — saw the sharpest pullback after the company took "select price increases" to counter inflation and tariff-driven cost pressures.

• Meals & Beverages volume dropped 3% in the quarter ended November 2, and executives said the declines were driven by the "elasticity impact" of those pricing moves.

Context: Soup has long been a go-to budget meal, but analysts say the category is now showing clear signs of strain.

• Nik Modi, global co-head of consumer and retail research at RBC Capital Markets, says Campbell's soup business is feeling pressure from shoppers trading down "to private label and value offerings."

What they're saying: Campbell's CEO Mick Beekhuizen said on Tuesday's earnings call that executives are "conscious of the importance of providing appropriate value in the marketplace, particularly during the critical soup season."

Yes, but: Not all soup sales are slowing.

• Campbell's said condensed cooking soups and broth continued to grow, adding more than 2 million new buyers — including 1.2 million Millennial and Gen X households.

The bottom line: If Campbell's soup is becoming a stretch, consumers are feeling squeezed.