What The Campbell's Company told the SEC could break it.

U.S. tariffs on ingredients, inputs and imports from Canada, Mexico, the EU and the UK have already raised Campbell's costs (notably tinplate steel used to make cans, plus packaging and imported finished goods), and management expects more significant tariff-driven cost pressure in fiscal 2026.

“The current U.S. presidential administration has announced a wide range of tariffs on certain ingredients, inputs and imports from many countries, including Canada, Mexico, members of the European Union and the United Kingdom. The imposition of such tariffs have resulted in increased costs, including on ingredients, packaging, such as tinplate steel used to make cans, and other materials used to produce and distribute our products, and on finished products that we import.”

The substantial majority of Campbell's Rao's tomato-based sauce products are made by a third-party contract manufacturer at a single facility in Italy (the rest at a single U.S. facility); a dispute or operational issue at that single supplier/facility would force costly alternative sourcing.

“For example, the substantial majority of our Rao's tomato-based sauce products are produced by a third-party contract manufacturer at a single facility in Italy and the remainder of our Rao's tomato-based sauce products are produced at a single facility in the U.S.”

Campbell's is exposed to commodity cost fluctuations across food ingredients and packaging; a hypothetical 10% move in commodity prices would change the fair value of its outstanding commodity contracts by ~$23 million (largely offset by the hedged items), and it experienced elevated cost inflation in 2025.

“A hypothetical 10% fluctuation in commodity prices would impact the fair value of our outstanding commodity contracts by approximately $23 million as of August 3, 2025, and $24 million as of July 28, 2024, which would generally be offset by inverse changes on the underlying hedged items.”