NEW YORK (AP) -- Campbell Soup says it's buying Plum Organics, which makes food for babies and kids, for an undisclosed amount as it looks to move into faster-growing categories.
The company, based in Camden, N.J., had been struggling to increase sales of its canned soups in recent years as people increasingly look for foods with a fresher feel. To diversity its portfolio, Campbell also recently purchased Bolthouse Farms, which makes premium juices and salad dressings.
Campbell Soup Co. says the premium and organic baby food market has been growing at an annual rate of 43 percent.
The addition of Plum, which is based in Emeryville, Calif., will bring Campbell's portfolio of kid-focused foods and drinks to $1 billion in annual sales.
Campbell says the acquisition will not affect its financial outlook for 2013.