Campbell's buys 49% stake in Rao's sauce maker La Regina
What's the deal? The Campbell's Company has completed its acquisition of a 49% interest in La Regina, the privately held Italian company that produces all Rao's Homemade tomato-based, jarred pasta sauces. La Regina, founded by Antonio Romano in 1972 and based in Scafati, Italy, has been Rao's key manufacturing partner since 1993 and also operates a facility in Alma, Georgia.
The deal builds on Campbell's 2024 acquisition of Sovos Brands, which brought Rao's Homemade into the company's portfolio. Rao's recently surpassed $1B in trailing 12-month net sales, making it the fourth billion-dollar brand alongside Campbell's, Goldfish, and Pepperidge Farm.
Why now? Rao's momentum made this a logical next step. With household penetration still expanding and net sales crossing the billion-dollar mark, locking in a deeper relationship with the sole manufacturer of Rao's core product line secures Campbell's supply chain at a critical growth moment.
"Our investment in La Regina and partnership with the Romano family reinforces our commitment to preserving the artisanal craftsmanship of Rao's sauces," said Mick Beekhuizen, Campbell's president and chief executive officer.
What could go wrong? Campbell's expects the deal to be neutral to its fiscal 2026 adjusted earnings per share — meaning it won't boost the bottom line immediately. Minority stakes also come with governance limitations: Campbell's doesn't control La Regina's operations or decision-making.
There's also the question of premiumisation risk. Rao's has thrived as a premium brand, but consumer spending on higher-priced grocery items can soften quickly in a downturn.
The signal: Big food companies are increasingly investing upstream — not just owning brands, but securing the production behind them. Campbell's move mirrors a broader trend of CPG giants tightening control over supply chains for their fastest-growing labels, especially as consumers continue trading up to premium pantry staples.
Rao's trajectory from niche restaurant brand to billion-dollar grocery powerhouse also underscores how "affordable luxury" in food keeps outperforming expectations.
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