Company to invest $230 million in network-wide
projects to drive best-in-class manufacturing capabilities and
leverage leading co-manufacturing partners
Tualatin, Oregon site to close; Jeffersonville,
Indiana site reduced in size
Campbell Soup Company (NYSE: CPB) today announced plans
as part of an ongoing effort to invest in and transform its supply
chain to fuel business growth, improve return on invested capital,
and enhance the overall effectiveness and efficiency of its
manufacturing and distribution network.
These actions are another significant step in transforming
Campbell’s supply chain into a competitive advantage. The company
is investing in its best-in-class manufacturing sites, leveraging
its network of leading co-manufacturing partners, and closing
inefficient sites and shifting production to more modern and
effective plants.
“To fuel growth and transform our manufacturing and distribution
network, we must invest and further strengthen our supply chain,”
said Dan Poland, Campbell’s Chief Supply Chain Officer. “By
leveraging our best-in-class in-house capabilities combined with
the expertise of trusted manufacturing partners, we will continue
to make the highest quality products, with a more agile, flexible,
and cost-effective manufacturing network. We continue to evaluate
optimization opportunities across the network to build our supply
chain of the future.”
Tualatin, Oregon Plant to Close
The Tualatin, Oregon plant, acquired in 2017 as part of
Campbell’s purchase of Pacific Foods, produces Pacific’s organic
soup, broth and plant-based beverages. The site consists of
multiple leased buildings of approximately 250,000 square feet. The
aging facility and inefficient nature of the site's configuration
can no longer support the increased consumer demand and continued
growth of the business.
Campbell will close the facility in phases and expects to cease
operations by July 2026, with the first phase to impact 120 of its
330 employees in August 2024. The company plans to move the plant’s
soup and broth production to other thermal and aseptic plants in
its network and shift plant-based beverage production to leading
co-manufacturing partners.
Jeffersonville, Indiana Plant to Specialize in Late
July
The company’s Jeffersonville, Indiana plant will specialize in
Late July tortilla chips. Production of kettle potato chips will be
moved to Campbell’s Charlotte and Hanover plants. The change will
go into effect in July 2024 and will impact approximately 85 of the
230 employees at Jeffersonville. The plant will continue to produce
regional snack brands.
In total, the closure of the Tualatin site and the changes to
the Jeffersonville plant will impact 415 employees. The company
will provide impacted employees with separation benefits and job
placement support.
Poland said, “We recognize this is difficult news for our teams
in Tualatin and Jeffersonville. Any action that impacts our people
is made with careful deliberation, and we are committed to provide
support and assistance during these changes.”
Investing for Growth to Add 210 New Roles
To enable the supply chain network of the future and unlock the
growth of the business, the company is making capital investments
of approximately $230 million through fiscal 2026 at newer, more
agile facilities in its network, with approximately $80 million
spent to date. These projects are expected to create approximately
210 new roles across the organization and will include new training
and development programs for employees. The projects include:
- Maxton, North Carolina
- $150 million investment for new aseptic soup production
- 100 new roles
- Hanover, Pennsylvania
- $72 million investment to add additional potato chip
kettles
- 72 new roles
- Franklin, Wisconsin
- $8 million investment to expand capacity for tortilla
chips
- 40 new roles
In addition to these investments, the company previously
announced plans to expand production of Goldfish crackers at its
Richmond, Utah plant. The new line, which is expected to be
operational by the end of calendar year 2024, will increase the
bakery’s output of Goldfish by 50 percent and will add
approximately 80 new roles at the site.
About Campbell
For more than 150 years, Campbell (NYSE:CPB) has been connecting
people through food they love. Generations of consumers have
trusted us to provide delicious and affordable food and beverages.
Headquartered in Camden, N.J. since 1869, the company generated
fiscal 2023 net sales of $9.4 billion. Our portfolio includes
iconic brands such as Campbell’s, Cape Cod, Goldfish, Kettle Brand,
Lance, Late July, Milano, Michael Angelo’s, noosa, Pace, Pacific
Foods, Pepperidge Farm, Prego, Rao’s, Snyder’s of Hanover, Swanson
and V8. Campbell has a heritage of giving back and acting as a good
steward of the environment. The company is a member of the Standard
& Poor’s 500 as well as the FTSE4Good and Bloomberg
Gender-Equality Indices. For more information, visit
www.campbellsoupcompany.com.
Forward-Looking Statements
This release contains “forward-looking statements” that reflect
the company’s current expectations about the impact of its future
plans and performance on the company’s business or financial
results. These forward-looking statements rely on a number of
assumptions and estimates that could be inaccurate, and which are
subject to risks and uncertainties. The factors that could cause
the company’s actual results to vary materially from those
anticipated or expressed in any forward-looking statement include:
the risk that the cost savings and any other synergies from the
Sovos Brands, Inc. (“Sovos Brands”) transaction may not be fully
realized or may take longer or cost more to be realized than
expected, including that the Sovos Brands transaction may not be
accretive within the expected timeframe or the extent anticipated;
the risks related to the availability of, and cost inflation in,
supply chain inputs, including labor, raw materials, commodities,
packaging and transportation; the company’s ability to execute on
and realize the expected benefits from its strategy, including
growing sales in snacks and growing/maintaining its market share
position in soup; the impact of strong competitive responses to the
company’s efforts to leverage its brand power with product
innovation, promotional programs and new advertising; the risks
associated with trade and consumer acceptance of product
improvements, shelving initiatives, new products and pricing and
promotional strategies; the ability to realize projected cost
savings and benefits from cost savings initiatives and the
integration of recent acquisitions; disruptions in or
inefficiencies to the company’s supply chain and/or operations,
including reliance on key supplier relationships; the risks related
to the effectiveness of the company's hedging activities and the
company's ability to respond to volatility in commodity prices; the
company’s ability to manage changes to its organizational structure
and/or business processes, including selling, distribution,
manufacturing and information management systems or processes;
changes in consumer demand for the company’s products and favorable
perception of the company’s brands; changing inventory management
practices by certain of the company’s key customers; a changing
customer landscape, with value and e-commerce retailers expanding
their market presence, while certain of the company’s key customers
maintain significance to the company’s business; product quality
and safety issues, including recalls and product liabilities; the
possible disruption to the independent contractor distribution
models used by certain of the company’s businesses, including as a
result of litigation or regulatory actions affecting their
independent contractor classification; the uncertainties of
litigation and regulatory actions against the company; the costs,
disruption and diversion of management’s attention associated with
activist investors; a disruption, failure or security breach of the
company’s or the company's vendors' information technology systems,
including ransomware attacks; impairment to goodwill or other
intangible assets; the company’s ability to protect its
intellectual property rights; increased liabilities and costs
related to the company’s defined benefit pension plans; the
company’s ability to attract and retain key talent; goals and
initiatives related to, and the impacts of, climate change,
including weather-related events; negative changes and volatility
in financial and credit markets, deteriorating economic conditions
and other external factors, including changes in laws and
regulations; unforeseen business disruptions or other impacts due
to political instability, civil disobedience, terrorism,
geopolitical conflicts, extreme weather conditions, natural
disasters, pandemics or other outbreaks of disease or other
calamities; and other factors described in the company’s most
recent Form 10-K and subsequent Securities and Exchange Commission
filings. This discussion of uncertainties is by no means exhaustive
but is designed to highlight important factors that may impact the
company’s outlook. The company disclaims any obligation or intent
to update forward-looking statements in order to reflect new
information, events or circumstances after the date of this
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240527310152/en/
INVESTOR CONTACT: Rebecca Gardy
(856) 342-6081 Rebecca_Gardy@campbells.com
MEDIA CONTACT: James Regan (856)
219-6409 James_Regan@campbells.com
Grafico Azioni Campbell Soup (NYSE:CPB)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Campbell Soup (NYSE:CPB)
Storico
Da Gen 2024 a Gen 2025
