Campbell Soup Co. said Thursday that its third-quarter profit was off 6% and that it is pulling from national distribution its new line of French Chef refrigerated soups and salads, which had been selling poorly.
"It's a good move," said food stock analyst Leonard Teitelbaum with Merrill Lynch Research. "Campbell has shown the ability to cut and run on products that just didn't make it."
Campbell, the 118-year-old company that dominates the U.S. canned soup market, has in recent years expanded its offerings to include Le Menu frozen dinners, Croissant Pastry Pizzas and other new foods.
Although some lines, including Juice Works fruit juice and Star Wars cookies, have flopped, Campbell is unlikely to change its strategy of experimenting with new products and reformulating old ones to boost sales.