Campbell Soup agrees to sell Garden Fresh Gourmet salsa brand

US-based Campbell Soup has agreed to divest its Garden Fresh Gourmet salsa brand to a Fountain of Health USA affiliate for an undisclosed sum.

Fountain of Health produces hummus, dips, variety packs, prepared salads, pâtés and frozen desserts.

Part of the Campbell Fresh division, Garden Fresh Gourmet was acquired by Campbell in 2015. The division also includes Bolthouse Farms.

Established in 1998, Garden Fresh Gourmet manufactures, sells and distributes salsa, hummus, dips and tortilla chips, as well as private label products.

Based in Ferndale, Michigan, Garden Fresh Gourmet also has operations in Grand Rapids in the same US state.

The deal, which is subject to customary closing conditions, is expected to close in Campbell’s fiscal 2019 third quarter.

The divestiture is reported to be part of Campbell’s strategy and portfolio review that was outlined in August.

Currently, the company is in the process of divesting both its Campbell Fresh and Campbell International businesses to reduce debt and strengthen its balance sheet.

Campbell expects to name buyers by the end of fiscal 2019.

The company recently announced the sale of its Washington refrigerated soup plant that was also part of Campbell Fresh.

Last December, Italian chocolate and confectionery products manufacturer Ferrero reported to have expressed interest in acquiring of Campbell Soup’s international business, which included its biscuit brand Arnott’s.

Campbell stated in August that through a more focused portfolio, it is increasing its cost savings target by $150m. The company plans to achieve the additional savings by streamlining its organisational structure, expanding its zero-based budgeting efforts and continuing to optimise its manufacturing network.