Campbell’s has announced it will be closing its factory in Toronto, Canada to improve the operational efficiency of its North American thermal supply chain, in a move which puts 380 jobs at risk.
Productivity improvements at other sites and reduced demand for canned soup in the region were key reasons for the closure, according to the company.
The Toronto site has been in operation since 1931, and the company stated that its size and age meant the facility could not be upgraded in a manner which would make it a “competitively viable” production site.
Campbell’s claimed the Toronto plant will remain operational for the next 18 months and close in phases, while its production will transition to the company’s thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris, Texas.
Ana Dominguez, president of Campbell Canada 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.”
Mark Alexander, president at Americas simple meals and beverages, added: “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.”
The company also announced plans to move its company headquarters to a new site in the Greater Toronto Area later this year.
Campbell’s says that the new headquarters will feature a food innovation centre, which will allow it to tailor soups to the tastes of Canadian consumers.
© FoodBev Media Ltd 2018