Campbell's wants to drop "Soup" from its name. It might “inject new life into a faltering brand” — but it could also alienate loyal customers
The rebrand of Campbell’s Soup to The Campbell’s Company may be a clever move — if it’s executed well. The change aims to keep the company relevant as it further diversifies beyond soups, with the goal of preserving customer loyalty while avoiding confusion.
“Campbell’s is being smart about their rebrand,” said Brandon Rollins $ROL, the CEO of Pangea Marketing Agency. “This a good example of how a well-established brand can update its image with a light touch.”
The rebrand highlights how companies, regardless of their age, can evolve, while avoiding the pitfalls of more drastic changes. Rollins compares Campbell’s approach with Twitter $TWTR’s transition to X, which he said was far more radical and potentially confusing.
Ryan White, a marketing professor at the Brigham Young University in Hawaii, told Quartz that rebranding established companies can be fraught with challenges.
“Branding old companies is sticky,” White said. There’s a chance that it might “inject new life into a faltering brand,” but it could also alienate loyal customers by erasing the nostalgia and cultural significance associated with the original brand. “It’s a tricky needle to thread,” he added.
For brands with high recognition, like Campbell’s, clinging to an outdated name can be detrimental. Rollins argues that it threatens to stifle the company, boxing it in to just one aspect of its business, such as soup. Dropping “Soup” from the name is a proactive step in embracing a broader product range.
Earlier this week, Campbell’s CEO Mark Clouse said the company today is “so much more than soup,” and wants to focus on 16 of its key brands, including popular items like Goldfish (CPB) crackers and V8 beverages. The company plans to request shareholder approval for the name change at its annual meeting later this year.
Rollins said that rebranding is expensive but necessary if companies want to prevent their old name from limiting their evolution.
Such has been the case for Starbucks $SBUX (SBUX) and Dunkin’. In 2011, Starbucks introduced a new “siren” logo that did not include its name or the word “coffee,” sparking frustration among devoted customers. Meanwhile, in 2018, Dunkin’ said it would drop “Donuts” from its name in an effort to reflect a focus on beverage and breakfast items, rather than just donuts.
For company’s thinking about rebranding, Rollins advocates for a “do no harm” approach, where long standing companies rebrand in a “subtle” way to avoid confusing customers or losing out on their competitive standing.
On the other hand, Professor White argues that simplified branding, while popular, is not always the best route. He pointed to Burberry’s recent return to a more ornate logo as a successful rebrand.
Rollins and White both say a brand refresh, if executed thoughtfully, can reinforce customer loyalty and strengthen market position. “It must be done with extreme care and should not be taken lightly,” White said.
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