Campbell: invests 230 million in supply chain optimization

Camden / NJ. (csc) Campbell Soup Company 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 the 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 Chief Supply Chain Officer Dan Poland. «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 to build our supply chain of the future.»

Tualatin, Oregon Plant to Close

The Tualatin, Oregon plant, acquired in 2017 as part of the purchase of Pacific Foods, produces Pacific’s organic soup, broth and plant-based beverages. The site consists of multiple leased buildings of 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 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

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. Dan Poland: «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 USD 230 million through fiscal 2026 at newer, more agile facilities in its network, with USD 80 million spent to date. These projects are expected to create 210 new roles across the organization and will include new training and development programs for employees. This includes:

• Maxton, North Carolina
  • USD 150 million investment for new aseptic soup production
  • 100 new roles
• Hanover, Pennsylvania
  • USD 72 million investment to add additional potato chip kettles
  • 72 new roles
• Franklin, Wisconsin
  • USD 8 million investment to expand capacity for tortilla chips
  • 40 new roles

In addition, 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 2024, will increase the bakery’s output of Goldfish by 50 percent and will add approximately 80 new roles at the site.