Campbell Soup wants to drop 'soup' from its name. Here's why.

After 155 years, Campbell Soup Company (CPB) wants to make a historic change to its name. The company wants to drop the word "soup" and become The Campbell’s Company. The change is pending shareholder approval. Why make this sort of big change? The company wants people to know it has a lot more to offer than just soup.

Yahoo Finance senior reporter Brooke DiPalma explains the name change and how a saucy acquisition is changing things for the company.

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This post was written by Stephanie Mikulich.

Video transcript

After 100 and 55 years, Campbell's Soup Company is changing its name, dropping the food that made it a household name in the first place for more on how the company came to this decision.

And why is Yahoo Finance's Brooke de Palma?

No more soup.

No, there's still gonna be in the port.

Not in the name in the portfolio in the portfolio.

Exactly.

Julie, there's goldfish, there's pepper farm, there's potato chips, there's sauce and there is still soup.

But pending shareholder approval in November.

Campbell's is looking to change its name from Campbell's soup company to the Campbell's company.

Really reflect the current portfolio of today.

Mark Klaus telling Yahoo Finance that he wants to be sure to strike the right balance because he said we do love soup.

It is foundational to us as a company and it's a critical business and they're not taking their eye off that ball.

But it, he does think that it's fair to say that today's portfolio is different.

Now, the company does expect or g next to to grow between two and 3%.

They do expect snacks to grow is so inconsistent with how it has been historically between 3 to 4% meals and beverages business, between 1 to 2%.

They do project soup to remain flat though in terms of long term sales growth.

Now, one analyst I spoke to isn't too worried about that.

They said that Campbell's Soup company or what could be known as the Campbell's company will still invest in soup in order for that to flat.

But they expect other brands like Reo's or the snack business to really deliver growth there.

Well, and speaking of Reo's, you talked to the CEO about that and, and sort of, you know what potential things that they've learned from that acquisition.

Yeah, $2.7 billion who was one of the CEO Mark Klaus is really if not the first acquisition that he's made in the last five years of his tenure and it really speaks volumes to the ability of Reo's to cater to different income co sports at this premium price point.

He said that they learn that consumers are willing to splurge for that 8 to $9 sauce over say going to dine out.

In addition to that, he also learned that multiple price points can still exist within the same portfolio.

You have a Reo's, that's like I said 8 to $9 or even lo looking at a say 12 to $14 limited batch O option for Reo's.

But then you also have Prego which is a $4 price point And lastly, this could be a future indicator.

C Soup company, Campbell's company has no eye on potential targets.

But what they learned here is that there really is this optionality.

It could open the door to other cuisine, say other premium Mexican sauces or as the population of the US really changes.

He's saying, you know, what is the next Asian or Hispanic option?

Like Arres is, hm is sauce a kind of soup?

No, I'm just kidding.

They don't have a soup option, but there you go.

All right, thanks Brooke.

Appreciate it.