Campbell Soup looks to premium products for growth after its successful Rao's acquisition

Campbell Soup Company (CPB) is looking to build a new recipe for success after a beefy acquisition.

Earlier this year, the 155-year-old company acquired Sovos Brands, which owns Rao's sauce, for $2.7 billion.

Now Rao's, which still sources the sauce from a local Italian family, is on its way to becoming the fourth $1 billion brand within the company's portfolio, joining the likes of Goldfish, Pepperidge Farm, and Campbell's Soup.

The company is learning that premium products can sell across the income spectrum, paving the way for future diversification. "What we've learned about Rao’s is that a lot of the growth is not necessarily exclusively coming from high-income households," CEO Mark Clouse told Yahoo Finance at its investor day this week.

Rao's currently brings in $0.9 billion in annual net sales, but the company would not disclose when it might cross that billion-dollar threshold.