Campbell's CEO cooks up recipe for growth with stock price lagging the market

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.

Campbell's is looking for growth as packaged food companies struggle with cautious consumers and a still inflationary environment. Its stock is up roughly 10% this year, lagging S&P 500's (^GSPC) 17% gain and Coca-Cola's (KO) 19% jump, though beating PepsiCo's (PEP) paltry 2% increase.