USA- Canned food company Campbell Soup Co. has announced plans to invest US$230 million to transform its supply chain over the next three years in a move meant to stimulate growth.
The supply chain upgrade will involve upgrading current manufacturing facilities, enhancing cooperation with manufacturing partners, closing manufacturing facilities that do not meet efficiency targets, and modernizing production.
Dan Poland, Campbell Soup’s Chief Supply Chain Officer said, “By leveraging our best-in-class in-house capabilities combined with the expertise of trusted manufacturing partners, we will continue to make the highest quality products, with a more agile, flexible, and cost-effective manufacturing network. We continue to evaluate optimization opportunities across the network to build our supply chain of the future.”
“To fuel growth and transform our manufacturing and distribution network, we must invest and further strengthen our supply chain.”
The company will revamp its processing facility in Jeffersonville, Indiana, to specialize in producing its Late July Tortilla Chips brand. This revamping will affect the Kettle Potato Chips brand’s production, which will shift to processing facilities in Hanover, Pennsylvania, and Charlotte, North Carolina.
The canned food company revealed it has already spent US$80 million of the US$230 million on various supply chain enhancement projects. Campbell Soup has already allocated US$72 million towards the Hannover and Charlotte facilities and US$8 million towards the Jeffersonville facility.
Campbell Soup also revealed plans to invest US150 million in a new aseptic soup production facility in Maxton, North Carolina.
The supply chain optimization plan will also include closing its Tualatin, Oregon, manufacturing plant. The plant was part of Campbell Soup’s acquisition of Pacific Foods in 2017. The first step of closure will start in August, and operations are expected to halt completely by the summer of 2026.
Campbell Foods hopes to enhance operational efficiency and expand product offerings through these investments, expected to positively impact sales and revenues. These investments have been part of the company’s growth strategy over the last few years.
In July 2023, Campbell Food revealed plans of investing US$160 million in its Richmond, Utah manufacturing facility. The facility is expected to be fully operational by the end of 2024 and is expected to increase output of its Goldfish Crackers brand by 50%.
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