Campbell Soup to close Oregon plant, invest $230M in manufacturing

Campbell Soup 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 step in transforming Campbell’s supply chain. The company is investing in its manufacturing sites, leveraging its network of leading co-manufacturing partners, and closing inefficient sites and shifting production to more modern and effective plants. The Tualatin, Oregon 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 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 to impact 120 of its 330 employees 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 co-manufacturing partners. 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. To enable the supply chain network of the future and unlock the growth of the business, the company is making capital investments of approximately $230M through fiscal 2026 at newer, more agile facilities in its network, with approximately $80M spent to date. These projects are expected to create approximately 210 new roles across the organization and will include new training and development programs for employees. In addition to these investments, 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 calendar year 2024, will increase the bakery’s output of Goldfish by 50% and will add approximately 80 new roles at the site.