In December 2017, Campbell announced that it acquired Pacific Foods which is a leading producer of organic broth, soup, and other shelf-stable food products. Campbell is reportedly looking toward the organic food category for growth to compensate for declining sales in the traditional processed food market. According to the company, it plans to focus its traditional products on older consumers, while relying on Pacific Foods to appeal to a younger demographic. Pacific Foods is expected to be a key driver of growth for Campbell as younger generations represent an increasing share of the consumer market. Campbell expects to accelerate the growth of Pacific Foods by expanding distribution, increasing marketing support for brand building, and investing in research and development and the supply chain. As a wholly owned subsidiary of Campbell, Pacific Foods is expected to continue operation of its Oregon facilities, which employ over 500 people in the region. Shortly after the acquisition was announced, leaders at Pacific Foods decided to pursue B Corp certification. B Corps are for-profit companies that are certified by the nonprofit B Lab if they meet rigorous standards of social and environmental performance, accountability, and transparency and which strive to use the power of markets to help solve social and environmental problems. Over 3,000 Certified B Corps exist in 71 countries in 150 industries. Many of these companies are small to medium-sized organizations, which is where much of the growth in this type of company has emerged. Notable companies with B Corp certification include Ben & Jerry's (the first wholly owned subsidiary to become certified), Patagonia, and Kickstarter. Certification is independent, third-party, and consists of an assessment of approximately 200 questions covering such aspects of the business as energy efficiency and employee programs and practices. In 2018, Pacific Foods began its B Corp assessment.

Questions

1. How would you compare Campbell Soup and Pacific Foods? What are some key similarities and key differences between the two companies?
2. How might Pacific Foods benefit from their acquisition by Campbell?
3. In what ways might the acquisition of Pacific Foods influence the organizational structure of Campbell?
4. Why do you think Pacific Foods decided to pursue B Corp certification so soon after being acquired by Campbell Soup? Can you think of any organizational or cultural characteristics that might be preserved through this type of certification?

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