US – Campbell Soup, an American processed food, and snack company, has planned to invest US$50 million and add 330 workers at its New Jersey headquarters as part of a broader intention to consolidate the company’s sprawling snacking operations.
The company said it will close its snacking operations in Charlotte, North Carolina, and Norwalk, Connecticut, and bring those workers to Camden, New Jersey as part of the move. The closings will not impact Campbell’s other operations in Connecticut and North Carolina, it added.
Employees in Charlotte and Norwalk will start relocating to Camden in the middle of this year, while for those who decide not to relocate, Campbell will provide job placement support and severance benefits.
“The decision to close these offices was difficult, but it is the right thing to do for our business and culture,” Mark Clouse, Campbell’s CEO, said in a statement.
“Unifying the company in one headquarters increases connectivity and collaboration, as well as provides enhanced career opportunities for our team.”
Clouse emphasized the company will maintain its two-division operating model, with each unit having distinct sections on the campus that support their respective identities and business focus.
Campbell expects cost savings from the consolidation beginning in the fiscal year 2024 and reaching US$10 million annually by the fiscal year 2026, which will be partially reinvested in the business.
Since the acquisition of Snyder’s-Lance in 2018 for US$5 billion, the largest in the company’s history, Campbell has been evaluating plans to unify its snacks in Camden, the site of its headquarters since 1869.
By bringing the operations together, Campbell said it will provide its snacking division with “significantly improved facilities, resources, and services than those that exist in Charlotte or Norwalk.”
Following the investment, upgrades are expected to start in March in the campus will now house a new gathering center, Snacks R&D center, and a pilot plant.
Communal workspaces, meeting, and multi-purpose rooms will be enhanced to support a variety of work styles and will include a daycare, café, fitness center, and other services. It will accommodate more than 1,600 employees.
Net sales in Campbell Soup Co’s snacks division increased 15% to US$1.12bn in the three months to October 30, 2022, driven by strong sales of Goldfish crackers, Snyder’s of Hanover pretzels, and Kettle Brand and Cape Cod potato chips; with higher prices partially offset by volume declines. Net sales in the meals & beverages division also increased by 15% to US$1.46bn.