Campbell's Just Bought Rao's for $2.7 Billion, and Fans Are Concerned

Rao’s loyalists are having a saucy reaction on social media.

When it comes to jarred pasta sauce, Rao’s Homemade reigns supreme. It’s one of Allrecipes readers'—and our own—favorite tomato sauces, and it’s also one of the few products that Allrecipes readers opt to splurge on over cheaper competitors.

On Monday, Campbell Soup Company, the iconic canned soup maker, announced it was acquiring Sovos Brands, the company that makes Rao’s sauces, for $2.7 billion. Sovos Brands include Rao’s Homemade as well as Noosa Yoghurt and Michael Angelo’s (which makes premium frozen Italian meals), with Rao’s accounting for almost 70 percent of Sovos adjusted net sales in 2022.

While both companies celebrate the acquisition, Rao’s fans are less excited. Fans love it for its high-quality ingredients and homemade taste, and consumers have flooded social media to express their concern that the product will change.

Meanwhile, Campbell’s President and CEO Mark Clouse claims that there will be no changes made to the recipe. In comments made to CNBC, Clouse said, “We’re not touching it! Anyone who thinks we’re going to touch the sauce, no.” Despite the assurances, fans aren’t quick to believe it. On a Reddit thread discussing the acquisition, one user said, “I don't expect Campbell's to royally mess up the formulas overnight. It'll be a slow change. Although once it does change, it'll become the worst investment for Campbell's.”

However, some are keeping a more “wait and see” outlook. Another user on the thread said, “Campbells also owns Cape Cod Chips and Kettle Chips which seem to be doing fine. Maybe Campbells will stay hands off and keep things the same. It is too early to assume they will water down the quality of Raos sauce to boost short term profits.”

Rao’s sauces are prized for their simple, carefully sourced ingredients. The brand’s Marinara Sauce, for example, contains Italian whole peeled tomatoes, olive oil, onions, salt, garlic, basil, black pepper, and oregano.

Campbell’s representatives say the purchase is meant to shore up the company’s Meals & Beverages division, which includes its Campbell’s brand soups, SpaghettiO’s, and Prego tomato sauce brand. And while fans may be concerned that Rao’s is housed under the same division as Prego, Campbell’s representatives believe Rao’s attracts different consumers than Prego, telling CNN, “Rao’s is the premium, market-leading sauce and it strengthens and diversifies our Meals & Beverages portfolio, complementing the core, mainstream portfolio.”

If you’re not convinced, you may find yourself joining the folks on social media claiming that they’ll be stocking up before the deal is final, or switching to an alternative premium sauce. The deal is expected to be completed this December, provided all regulatory approvals and closing conditions are met.