CAMDEN, NJ. — Plans to reinvigorate The Campbell’s Co. Snacks segment, which saw organic sales decline 3% in the second quarter, include Goldfish flavor and packaging innovations.

“We’re driving innovation and differentiation with new Goldfish LTOs, such as Harry Potter Butterbeer grahams, and other differentiated flavors,” said Mick Beekhuizen, president and chief executive officer, in a March 5 earnings call to discuss financial results for the quarter ended Jan. 26. “We are also strategically expanding accessibility and enhanced value across our snacks portfolio by introducing new pack sizes and price points that provide consumers more choices for their favorite snacks, from Pepperidge Farm Chessman and Mini-Nantucket cookies in single-serve multipacks to Goldfish and small-size packs, offering an attractive opening price point. Overall, I’m excited about the opportunities within our Snacks portfolio.”

He said Campbell’s innovation pipeline includes better-for-you items such as Kettle Brand chips made with avocado oil.

In Campbell’s Snacks segment in the quarter, net sales decreased 6% to $1.01 billion from $1.07 billion. Excluding the impact of the Pop Secret divestiture, organic net sales decreased 3%, driven by declines in third-party partner and contract brands, Goldfish crackers, and Snyder’s of Hanover pretzels. Negative impacts came from volume/mix declines of 2% and lower net price realization of 1%. Operating earnings decreased 29% to $114 million from $161 million, primarily due to lower gross profit and higher marketing and selling expenses.

“Our snacks margin fell short of our expectations, driven by unfavorable mix and some operational headwinds in our fresh bakery business during the important holiday period,” Beekhuizen said. “We are actively addressing both areas, and combined with a normalization of our commercial support, we expect our snacks margin to improve sequentially throughout the second half of the fiscal year.”

Compared to the first quarter, progress in the second quarter came in Pepperidge Farm cookies and Snyder’s of Hanover pretzels, he said.

“Our Pepperidge Farm bakery business continued its in-market momentum from previous quarters as we maintained our overall share position,” he said. “Additionally, we made sequential share progress on our Pepperidge Farm cookies business, driven by the holiday activation.”

In crackers, market share increased for Lance, but increased promotional activity by competitors negatively impacted Goldfish crackers, Beekhuizen said.

“Lance is doing well, and I think it is a brand that’s obviously a little bit in the background, but it provides an attractive entry price point,” he said. “It is great value for the consumer, and on top of it, it provides that affordable protein proposition that consumers are looking for.”

Companywide, Camden-based Campbell’s had net earnings of $173 million, equal to 58¢ per share on the common stock, which were down 15% from $203 million, or 68¢ per share, in the previous year’s second quarter. Net sales increased 9% to $2.69 billion from $2.46 billion, driven by the acquisition of Sovos Brands, Inc. Organic sales declined 2%, driven by net price realization with flat volume/mix.

Over the first six months of the fiscal year, Campbell’s had net earnings of $391 million, or $1.31 per share, down 11% from $437 million, or $1.47 per share, in the same time of the previous year. Net sales in the six-month period increased 10% to $5.46 billion from $4.97 billion.

For the fiscal year, Camden-based Campbell’s now expects net sales growth of about 6% to 8%, down from a previous guidance of 9% to 11%, and organic net sales in a range of down 2% to flat, which compared to previous guidance of flat to a 2% increase.