Campbell Soup Company 's main weakness is the lack of expanding their presence because the company relies intensely on their current major buyers, Walmart buyers, the US market, and Millennials. Campbell Soup Company 's largest customer comes from Walmart, which accounts for approximately 17% of the company’s consolidated net sales. In perspective, no other customer accounts for 10% or more of the company’s consolidated net sales (Campbell Soup Company, 2011). If Campbell Soup can not pursue their strategy to expand sales in alternative retail grocery channels, their financial results will immensely be impacted. In addition, the demand for private label brands has increased significantly, and large retailers, like Walmart, this makes devoting more shelf space to these brands a profitable venture (Campbell Soup Company Form 10-K Annual Report, 2014). Any downturn or disruption of sales, for an extended period of time, could adversely affect the Campbell Soup’s consolidated net sales (Campbell Soup Company Form 10-K Annual Report, 2014). These …show more content…
On April 15, 2016, Campbell Soup recalled 12 million cans of soup because there wasn’t enough salt in their soups and people across the country were exposed to under-salted broth (“PR Nightmare: Campbell’s Is Recalling 12 Million Cans Of Soup That Still Need Another Pinch Of Salt,” 2016). Many Campbell’s flavors were affected by the oversight, ranging from basic soups like Chicken Noodle and Classic Tomato to hearty stews like Chunky Beef With Country Vegetables. Also, the company had to SpaghettiOs Original 14.2oz Cans Recalled Due to Potential Choking Hazard (Campbell Soup Company, 2015). As a result, 355,000 cans of a variety of its Chunky soup were recalled because it contained pieces of hard plastic that present a choking hazard. Product recalls can damage the company’s overall image and reduce consumer confidence in Campbell Soup 's