March 11 (Reuters) - Campbell's Co cut its annual sales and profit forecasts on Wednesday, as the packaged food company expects demand to be weighed down by consumers' shift toward cheaper alternatives amid rising input costs.

Shares of the company, which also missed expectations for second-quarter sales and profit, were down nearly 6% in premarket trading.

Campbell's price hikes in recent years, meant to protect margins from rising raw material costs, have dissuaded lower-income consumers, who increasingly prefer cheaper brands and store-label products as they tighten budgets.

The company has been battling higher costs related to tariffs, especially in metals like aluminum and steel used for cans and packaging.

Meanwhile, prices of beef, the key ingredient for its ready-to-eat soup, hit record highs in the U.S. as drought forced ranchers to shrink the cattle herd to its smallest size in 75 years.

The company now expects fiscal 2026 organic net sales to fall between 1% and 2%, compared with its previous forecast of between a 1% fall and 1% rise. 

It also expects fiscal 2026 adjusted profit per share between $2.15 and $2.25, lower than its previous forecast of $2.40 and $2.55.

For the quarter ended February 1, net sales fell 5% to $2.56 billion, compared with the average analyst estimate of $2.61 billion.

Adjusted profit per share came in at 51 cents, below analysts' average estimate of 57 cents, according to data compiled by LSEG.