TORONTO — Jan. 24, 2018 (BUSINESS WIRE) — Campbell Soup Company on Wednesday announced plans to close its manufacturing facility in Toronto to improve the operational efficiency of its North American thermal supply chain network. Campbell will move its Canadian headquarters and commercial operations to a new location in the Greater Toronto Area.
Several factors have resulted in excess capacity in Campbell's North American thermal supply chain network, including significant productivity improvements and volume declines of canned soup in North America. Following a review of its manufacturing operations, the company has made the decision to wind down manufacturing at its Toronto facility. Canadian soup and broth production will be consolidated into the company’s existing U.S. manufacturing network. Opened in 1931, Toronto is the oldest plant in the Campbell thermal network. Due to its size and age, the Toronto plant cannot be retrofit in a way that is competitively viable.
Campbell plans to operate the Toronto facility for up to 18 months and will close it in phases, transitioning its production to three U.S. thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris, Texas. Campbell employs nearly 600 people in Toronto including its headquarters, commercial operations and manufacturing functions. Approximately 380 manufacturing and manufacturing-related roles will be impacted.
Mark Alexander, President, Americas Simple Meals and Beverages, said, “The decision to stop producing soup and broth in Canada was a difficult one. After a thorough review, we decided this was the best course of action for our business. We are operating in an increasingly challenging environment as our industry's consumer and retail landscapes continue to change dramatically. This decision in no way reflects on the talent or dedication of our team at our Toronto facility, and we are committed to assisting them through this difficult transition.”
Campbell will offer affected employees support to assist with the transition by providing severance packages that recognize their commitment and service. The company will provide career counseling with employment advisors who can assist with job searches, resume writing and preparing for interviews. Campbell will also host job fairs and provide on-site financial planning workshops, among other benefits, to assist employees with the transition.
Ana Dominguez, President of Campbell Canada, informed employees at a meeting held at the plant. She said, “Today is a tough day. We are committed to treating our employees with the respect and fairness they deserve. Despite this decision, Canada is important to Campbell. We are remaining in Canada and will continue to make important contributions to the food industry in this country.”
Campbell will relocate its Canadian headquarters, along with nearly 200 roles, in the next several months. Site selection is under way for a new location in the Greater Toronto Area, which will feature a new Food Innovation Center. Campbell will continue to make soup and broth recipes tailored to Canadian tastes.
About Campbell Soup Company
Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food that matters for life’s moments.” We make a range of high-quality soups and simple meals, beverages, snacks and packaged fresh foods. For generations, people have trusted Campbell to provide authentic, flavorful and readily available foods and beverages that connect them to each other, to warm memories and to what’s important today. Led by our iconic Campbell’s brand, our portfolio includes Pepperidge Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal Dansk, Kjeldsens, Garden Fresh Gourmet and Pacific Foods. Founded in 1869, Campbell has a heritage of giving back and acting as a good steward of the planet’s natural resources. The company is a member of the Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more information, visit www.campbellsoupcompany.com or follow company news on Twitter via @CampbellSoupCo. To learn more about how we make our food and the choices behind the ingredients we use, visit www.whatsinmyfood.com.