Campbell’s is cutting roughly 13% of its workforce and two snack plants to save $500M by FY2030, following a 33% net income drop and a 12% Q4 snacks decline. The company reported a net income of $403 million for fiscal 2026, down 33% year-over-year, on net sales of $9.74 billion, down 5%.
The snacks segment drove most of the decline, with sales falling 12% in Q4 and 6% for the full year to $3.82 billion. The company posted a Q4 net loss of $69 million, compared to a $145 million profit in the same period a year prior.
Campbell’s is cutting about 13% of its staff, closing two snack plants, and reducing its dividend 36% to reach $500M in savings by FY2030, while prioritizing core brands. They project net sales down 2 to 4% and EPS down 17 to 24% for FY2027.
Tyson Foods deepened its beef loss forecast to $625M to $775M and reduced operating income guidance to $1.85B to $2.05B, citing cattle shortages and volatile pricing. These declining sales volumes are driven by broader macroeconomic trends or issues in brand execution.
FDA Food Inspections Plummet
FDA foreign food inspections fell 35% from fiscal 2019 to fiscal 2025, reaching just 1,140 sites last year against a congressional mandate of 19,000 annual inspections. It has 420 employees in its food inspection, with 10% to 15% of positions chronically unfilled.
The all-time inspection high was 1,700 sites in 2019, less than 10% of the mandate. Recent federal budget cuts eliminated more than half the staff managing inspector travel logistics, leaving inspectors to book their own travel.
The result of these inspection challenges was evident with this summer’s Cyclospora outbreak. The outbreak was traced to Taylor Farms iceberg lettuce from Mexico, distributed to Target, Taco Bell, Whole Foods, Kroger, Walmart, Costco, and Jack in the Box. FDA inspectors reached the site a month post-recall.
General Mills, Mars, and McKee Foods filed a federal lawsuit in Chicago, accusing United Sugar and ASR Group of coordinating a price-fixing scheme from 2017 to 2024. Defendants allegedly shared confidential competitive information via a third party to inflate granulated sugar prices.
A separate class action against the defendants is pending in Minnesota federal court. Domino Sugar owner ASR Group called the suit duplicative, while United Sugar did not comment. The outcome of the sugar suit may offer manufacturers a way to recover costs from unexplained price spikes.
Canada Imposes Counter Tariffs
Canada’s counter-tariffs, effective September 8, add more pressure on dairy ingredient sourcing. Ottawa imposed duties up to 50% on $27.6B in US goods (including 50% on dairy/powders/whey and 25% on cheese/curd), responding to US tariffs of 50% on ~$28B in Canadian goods from Aug 22.
Dairy producers support the US stance, while the Farm Bureau warns against escalation, and pork producers highlight North American export reliance. There is no negotiation timeline. These tariffs create immediate sourcing shifts for flexible buyers.
Manufacturers may need to reassess their supply chains and look for alternative sources to mitigate the impact of the tariffs. The outcome of the sugar suit and the ongoing trade tensions between the US and Canada will likely have significant implications for the food industry.
Campbell’s decision to cut its workforce and close snack plants is a direct result of the company’s declining sales and net income. They are prioritizing core brands and reducing costs to reach their savings goal.
Tyson Foods’ revised forecast is a response to the challenges facing the beef industry, including cattle shortages and volatile pricing. The company is adjusting its guidance to reflect these challenges.
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The FDA’s foreign food inspections have been declining in recent years, reaching a low of 1,140 sites in fiscal 2025. The agency is working to increase inspections and improve its food safety programs.
The Cyclospora outbreak highlights the importance of food safety inspections and the need for the FDA to increase its inspection efforts. The outbreak was traced to contaminated lettuce from Mexico, and FDA inspectors reached the site a month after the recall.
The price-fixing lawsuit filed by General Mills, Mars, and McKee Foods alleges that United Sugar and ASR Group coordinated to inflate granulated sugar prices. The outcome of the lawsuit will depend on the evidence presented in court.
The tariffs imposed by Canada on US goods will have a significant impact on dairy ingredient sourcing. Dairy producers support the US stance, while the Farm Bureau warns against escalation.
Industry Watches Sugar Suit
The food industry is closely watching the developments in the sugar suit and the trade tensions between the US and Canada. The outcome of these events will have significant implications for the industry.
The situation is unfolding, and manufacturers are preparing for potential changes in the market. They are reassessing their supply chains and looking for alternative sources to mitigate the impact of the tariffs.
The FDA is working to improve its food safety programs, and the agency is increasing its inspection efforts. The Cyclospora outbreak highlights the importance of food safety inspections, and the FDA is taking steps to prevent similar outbreaks in the future.
Campbell’s decision to cut its workforce and close snack plants is a significant step towards reducing costs and improving the company’s financial performance. The company is prioritizing core brands and reducing costs to reach its savings goal.
Tyson Foods’ revised forecast is a response to the challenges facing the beef industry, and the company is adjusting its guidance to reflect these challenges. The beef industry is facing significant challenges, including cattle shortages and volatile pricing.
The food industry is closely watching the developments in the sugar suit and the trade tensions between the US and Canada. The outcome of these events will have significant implications for the industry, and manufacturers are preparing for potential changes in the market.
Tariffs Pressure Dairy Sourcing
September 8 is the effective date for Canada’s counter-tariffs on US goods. The tariffs will add pressure on dairy ingredient sourcing, and dairy producers are supporting the US stance.
The Farm Bureau is warning against escalation, and pork producers are highlighting North American export reliance. There is no negotiation timeline, and the situation is unfolding.
Manufacturers are reassessing their supply chains and looking for alternative sources to mitigate the impact of the tariffs. The outcome of the sugar suit and the ongoing trade tensions between the US and Canada will likely have significant implications for the food industry.
