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

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.

Free Whitepaper How electronic inspection sensors prevented a potentially extremely costly product recall

A pharmaceutical client was at risk of a product recall due to a capping problem with a new tablet formulation. This document explains how DJA Pharma prevented a costly recall with a simple, elegant and effective solution.

Enter your details here to receive your free whitepaper.

Machinery whitepaper

Download our whitepaper

Yes I have read and accept the terms and conditions and privacy policys.

You are in control of the communications you receive from us and you can update your preferences anytime to make sure you are receiving information that matters to you. Please check our Verdict Privacy Policy to see how we protect and manage your submitted data.

You will receive your free whitepaper after you submit the form.