Campbell To Move Canadian Headquarters and Commercial Operations To New Location in Greater Toronto Area

TORONTO--(BUSINESS WIRE)--Jan. 24, 2018-- Campbell Soup Company (NYSE: CPB) today 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.

This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180124006037/en/

Campbell Soup Company 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. Campbell will continue to make soup and broth recipes tailored to Canadian tastes. (Photo: Business Wire)

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.”

Opening New Canadian Headquarters

Campbell will relocate its Canadian headquarters, along with nearly 200 roles, in the next several months. Site selection is underway 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.

The decision to stop manufacturing in Toronto is part of a previously-announced cost savings initiative. As of Oct. 29, 2017, Campbell has generated $345 million in annual ongoing cost savings from this multi-year initiative, and is investing a portion of the savings back into the business. Additional details on the program will be provided in a Form 8-K, which will be filed with the Securities and Exchange Commission today.

Campbell currently employs approximately 18,500 people worldwide.

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.

FORWARD-LOOKING STATEMENT

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 (1) changes in consumer demand for the company’s products and favorable perception of the company’s brands; (2) the risks associated with trade and consumer acceptance of product improvements, shelving initiatives, new products and pricing and promotional strategies; (3) the impact of strong competitive responses to the company’s efforts to leverage its brand power with product innovation, promotional programs and new advertising; (4) changing inventory management practices by certain of the company’s key customers; (5) a changing customer landscape, with value and e-commerce retailers expanding their market presence, while certain of the company’s key customers continue to increase their significance to the company’s business; (6) the company’s ability to realize projected cost savings and benefits from its efficiency and/or restructuring initiatives; (7) 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; (8) product quality and safety issues, including recalls and product liabilities; (9) the ability to complete and to realize the projected benefits of acquisitions, divestitures and other business portfolio changes; (10) the conditions to the completion of the Snyder’s-Lance acquisition by the company, including obtaining Snyder’s-Lance shareholder approval, may not be satisfied, or the regulatory approvals required for the acquisition may not be obtained on the terms expected, on the anticipated schedule, or at all; (11) long-term financing for the Snyder’s-Lance acquisition may not be available on favorable terms, or at all; (12) closing of the Snyder’s-Lance acquisition may not occur or may be delayed, either as a result of litigation related to the acquisition or otherwise; (13) the company may be unable to achieve the anticipated benefits of the Snyder’s-Lance acquisition; (14) completing the Snyder’s-Lance acquisition may distract the company’s management from other important matters; (15) disruptions to the company’s supply chain, including fluctuations in the supply of and inflation in energy and raw and packaging materials cost; (16) the uncertainties of litigation and regulatory actions against the company; (17) 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; (18) the impact of non-U.S. operations, including trade restrictions, public corruption and compliance with foreign laws and regulations; (19) impairment to goodwill or other intangible assets; (20) the company’s ability to protect its intellectual property rights; (21) increased liabilities and costs related to the company’s defined benefit pension plans; (22) a material failure in or breach of the company’s information technology systems; (23) the company’s ability to attract and retain key talent; (24) changes in currency exchange rates, tax rates, interest rates, debt and equity markets, inflation rates, economic conditions, law, regulation and other external factors; (25) unforeseen business disruptions in one or more of the company’s markets due to political instability, civil disobedience, terrorism, armed hostilities, extreme weather conditions, natural disasters or other calamities; and (26) other factors described in the company’s most recent Form 10-K and subsequent Securities and Exchange Commission filings. The company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180124006037/en/

Source: Campbell Soup Company

Campbell Soup Company INVESTOR CONTACT: Ken Gosnell, 856-342-6081 Ken_Gosnell@campbellsoup.com or MEDIA CONTACT: Thomas Hushen, 856-342-5227 Thomas_Hushen@campbellsoup.com