Campbell optimizes supply chain to fuel growth, improve distribution

Reallocating manufacturing resources to meet market demand is among the changes Campbell Soup Co. is making to transform its supply chain to fuel business growth, improve return on invested capital, and enhance its manufacturing and distribution network efficiency. The company will invest in manufacturing sites, leverage its network of co-manufacturing partners, close inefficient sites and shift 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 Dan Poland, Campbell’s chief supply chain officer. “We continue to evaluate optimization opportunities across the network to build our supply chain of the future.”

Tualatin Plant in Oregon to Close

The Tualatin, Ore.-based 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, says the Campbell's team, can no longer support increased consumer demand and continued business growth.

Campbell will close the facility in phases and expects to cease operations by July 2026. The first phase is expected to affect 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 leading co-manufacturing partners.

Jeffersonville Plant in Indiana to Specialize in Late July tortilla chips

The company’s Jeffersonville, Ind.-based plant will specialize in Late July brand tortilla chips. Kettle-type potato chip production will move to Campbell’s Charlotte and Hanover plants. The change will go into effect in July 2024 and will affect 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 affect 415 employees. The company will provide affected employees with separation benefits and job placement support.

Poland said, “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 optimize its supply chain network and drive business growth, Campbell Soup Co. plans capital investments of approximately $230 million through fiscal 2026 at newer, more agile facilities. Approximately $80 million of these investments have been made to date. The projects are expected to create approximately 210 new roles across the organization and will include new training and development programs for employees. The projects include a $150 million investment for new aseptic soup production, which will add 100 new roles; a $72 million investment for additional potato chip kettles production in Hanover, Pa., that will add 72 new roles; and an $8 million project to expand capacity for tortilla chips in Franklin, Wis., that will add 40 new roles.

In addition to these investments, the company previously announced plans to expand the production of Goldfish crackers at its plant in Richmond, Utah. 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 add approximately 80 new roles at the site.