Campbell Soup Exec's Journey From Combat to CPG
Before Toby Johnson spent her time rising through the ranks of the consumer packaged goods industry, she rose through the ranks of the U.S. Army – all the way to flying an attack helicopter during Operation Iraqi Freedom.
Johnson, 43, served in the army for seven years as an aviation officer and Longbow Apache helicopter pilot, achieving the rank of captain, and was deployed to Iraq as part of the 2003 invasion.
After the military, Johnson started out as an intern at Purchase, N.Y.-based PepsiCo and ended up holding a variety of roles before rising to region VP of the company’s Frito-Lay division. While there, she says that she amassed strategic experience in direct-to-store delivery and execution excellence in snack foods.
“PepsiCo is a company that values its people, and seeing how you can put leadership principles into practice in one of the best-run companies in the world was an incredible chapter in my development,” Johnson notes.
The Soup Surge
There’s no question that Johnson has joined Campbell at probably the most pivotal and transformational time for the iconic American company.
Before the pandemic, Campbell had been in the throes of a multiyear turnaround plan. A new CEO and CFO had been installed over the past two years. The company’s board had been refreshed with the addition of three directors with extensive CPG and marketing expertise. And now, the pandemic has presented Campbell with an unprecedented opportunity to supercharge that turnaround plan for growth.
“When you look at the business, the opportunities and the brands that Campbell’s has assembled are absolutely incredible,” Johnson asserts. “The amount of change and transformation that a 150-year-old company has gone through in the past couple of years is amazing. The ability to be agile, to evolve and even leapfrog where the rest of the industry is positioned right now is very exciting, especially with the way the business is positioned.”
What she means by “positioned” is poised for turbo-charged growth.
In June, the company reported booming sales during its third quarter on massive consumer demand during the COVID-19 crisis. Net sales at Campbell increased more than 14%, from $1.953 billion in the prior-year quarter to $2.238 billion for the quarter ended April 26. Profit tripled to $156 million, versus $53 million during the same period in 2019. Also, the company says that it’s seeing pandemic-related demand increase its household penetration by 6% year over year.
Thanks to this sales boom, Campbell raised its guidance for the 2020 fiscal year, from a -1% to 1% increase in sales to a 5.5% to 6.5% increase. Now the company is focused on keeping many of these consumers, who are getting used to a “new normal” of remote work and meals mostly consumed at home.
Johnson will lead the Campbell Snacks division, where net sales for 2019 were $3.784 billion. The portfolio includes power brands such as Goldfish, Pepperidge Farm, Kettle Brand Chips, Cape Cod, Lance, Snyder’s of Hanover, Late July, Pretzel Crisps, Emerald Nuts and Pop Secret.
Johnson observes that the pandemic, specifically, is presenting consumers with more opportunities for snacking. Many consumers are working from home, more hours, all online, and they take more breaks that require smaller meals.
“Those breaks become even more important with the intensity of online communication all day,” she points out, “and that getaway becomes a moment where you can take a break and enjoy a snack. You may not have the time to prepare a full meal. You might be able to do some quick scratch cooking. But the accessibility of snacking is becoming a more important part of people’s lives.”
According to Johnson, Campbell is looking at adding more manufacturing capacity to meet demand. The company has been holding meetings with retailers to try to determine what shoppers’ needs are now and six months from now, as well as how much they’re buying.