Campbell's Co. (CPB) finds itself dealing with an uncomfortable internal situation after a lawsuit surfaced alleging that one of its senior executives made some truly bizarre comments about the company's products and employees.
Executive Benched During Investigation
The soup giant announced Tuesday that it has placed Martin Bally, its Vice President of Information Technology, on administrative leave while investigating the allegations. According to the company, the alleged remarks are "unacceptable" and completely at odds with Campbell's values and workplace culture.
But here's where things get weird. The lawsuit doesn't just accuse Bally of inappropriate workplace comments—it alleges he made outlandish claims about the company's products themselves. Campbell's wasted no time pushing back hard on those allegations, calling the supposed statements about their food "not only inaccurate—they are patently absurd."
The company emphasized that its chicken meat comes from trusted, USDA-approved U.S. suppliers and meets rigorous quality standards. Campbell's noted that all its soups are made with "No Antibiotics Ever" chicken meat, and dismissed any claims to the contrary as "completely false." One of the more eyebrow-raising allegations? That the company's meat was supposedly produced using a 3D printer. Campbell's isn't having it.
The Allegations Behind the Lawsuit
The lawsuit, filed in Michigan on November 20, paints a troubling picture. It alleges that Bally made offensive remarks about Indian workers and dismissively referred to Campbell's products as food for "poor people." The 3D-printed meat claim was apparently part of that same conversation.
Robert Garza, a cybersecurity analyst hired by Campbell's in 2024, filed the suit. According to Garza, he reported Bally's comments to his manager in January but wasn't directed to take the matter to HR. Just weeks later, he was fired. The timing, at least from his perspective, looks questionable.
Tough Times for Campbell's
This internal drama comes at an already challenging moment for Campbell's. The company recently reported fourth-quarter revenue that slightly missed expectations, despite managing 1% year-over-year sales growth. Organic net sales actually declined 3% year-over-year, which the company attributed to lower volume and product mix issues.
From a performance standpoint, Campbell's sits in the 73rd percentile for growth but only the 34th percentile for quality, reflecting what you might call middle-of-the-road results in a competitive market.
Price Action: Campbell's stock has had a rough year, declining 27.62% year-to-date. Shares edged 0.62% lower on Tuesday to close at $30.42.