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Campbell Shutting One Plant, Renovating Others in $230M Supply Chain Optimization Plan

May 28, 2024
The Tualatin, Ore., site will close, Jeffersonville, Ind., will downsize and four others are expanding.

Campbell Soup Co. unveiled a plan that includes closing its Tualatin, Ore., plant, dedicating its Jeffersonville, Ind., plant to tortilla chips and investing $230 million in network-wide projects “to drive best-in-class manufacturing capabilities and leverage leading co-manufacturing partners.”

Company officials called it a “supply chain optimization plan to fuel growth.” The only executive quoted in the news announcement was Dan Poland, Campbell’s chief supply chain officer for the past two years, and apparently the chief architect of the plan.

“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,” the news release said.

The Tualatin 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 sq. ft. “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 said.

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 this August. 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 co-manufacturers.

The Jeffersonville plant will specialize in Late July tortilla chips, a brand acquired along with Snyder's-Lance in 2018. Its current production of kettle potato chips will be moved to Campbell’s Charlotte and Hanover plants. The change will happen this July and will impact approximately 85 of the 230 employees at Jeffersonville. The plant will continue to produce regional snack brands.

On the other hand, Campbell 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 jobs. The projects include:

  • Maxton, N.C.: $150 million for new aseptic soup production, 100 new jobs
  • Hanover, Pa.: $72 million to add additional potato chip kettles; 72 new jobs
  • Franklin, Wis.: $8 million investment to expand capacity for tortilla chips, 40 new jobs

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 this year, will increase the bakery’s output of Goldfish by 50% and will add approximately 80 jobs.

“We continue to evaluate optimization opportunities across the network to build our supply chain of the future,” said Poland.

In total, the closure of the Tualatin site and the changes to the Jeffersonville plant will impact 415 employees.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

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