On Tuesday, Campbell Soup Company CPB announced strategic plans to revamp its supply chain, aiming to spur business growth, improve return on invested capital, and boost the efficiency of its manufacturing and distribution network.
The company will invest in its top manufacturing sites, use a network of leading co-manufacturing partners, and close outdated facilities, shifting production to more modern plants.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.
Tualatin Plant Closure: The Tualatin, Oregon plant will close in phases, ceasing operations by July 2026.
This plant, which produces Pacific’s organic soup, broth, and beverages, is considered inefficient and unable to meet growing consumer demand.
The closure will affect 330 employees, with the first 120 impacted in August 2024. Production will shift to other plants and co-manufacturing partners.
Changes at Jeffersonville Plant: In July 2024, the Jeffersonville, Indiana plant will specialize in Late July tortilla chips, moving kettle potato chip production to Charlotte and Hanover plants.
The change is said to impact 85 of the 230 employees at Jeffersonville. In total, the closure of the Tualatin site and the changes to the Jeffersonville plant will impact 415 employees.
Campbell plans to support affected employees with separation benefits and job placement assistance.
To support future growth, Campbell is investing approximately $230 million through fiscal 2026 in newer facilities. This will create 210 new roles and include training programs. The investments include:
Maxton, North Carolina: $150 million for new aseptic soup production, adding 100 roles.
Hanover, Pennsylvania: $72 million to expand potato chip kettles, adding 72 roles.
Franklin, Wisconsin: $8 million to expand tortilla chip capacity, adding 40 roles.
As previously announced, expanding Goldfish cracker production in Richmond, Utah, will increase output and add 80 roles by the end of 2024.
Price Action: CPB shares closed lower by 2.47% at $44.22 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
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