Campbell Soup Company Shakes Up Supply Chain
Campbell Soup Company is transforming its supply chain, consolidating efforts and investing in select plants to increase efficiency and drive business growth.
Campbell is funneling about $230 million through fiscal year 2026 into newer, more modern and efficient supply chain operations. It has spent about $80 million so far. The investment is expected to create 210 roles, along with new training and development programs for the company’s supply chain workforce.
Investment Breakdown:
- Maxton, North Carolina
- $150 million for new aseptic soup production
- 100 new jobs
- Hanover, Pennsylvania
- $72 million to add additional potato chip kettles
- 72 new jobs
- Franklin, Wisconsin
- $8 million to expand tortilla chip capacity
- 40 new jobs
The company is also finalizing previously announced plans for expanded production of its Goldfish crackers in Richmond, Utah. By the end of the year, the company expects to increase its bakery output by 50%, adding about 80 new roles in the process.
“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, in a statement. “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.”
- Also read: Campbell’s Acquires Sovos Brands
Operational Shifts
The company also analyzed the efficiency of its existing manufacturing and distribution sites to assess where it could simplify and expedite operations. As a result, the company will be closing its Tualatin, Oregon plant — which it acquired as a result of its Pacific Foods purchase. Campbell said the aging location could no longer support increased consumer and business demands.
Details and Impact:
- Closing by July 2026
- Impact 120 of 330 employees
- Move soup and broth production to other in-network thermal/aseptic plants
- Move plant-based beverage production to co-manufacturing partners
In Jefferson, Indiana, the company is moving out its kettle potato chip production (which it will instead manufacture in Charlotte and Hanover. This plant will focus specifically on Late July tortilla chips.
Details and Impact:
- Transition finalized by July 2024
- Impact 85 of 230 employees
[Also read: P&G Details Cost-Cutting Productivity Enhancements Across Supply Chain, R&D, and Marketing]
Poland said the company will continue to evaluate optimization opportunities across its network as it looks to build its supply chain of the future. The company said it will provide affected employees with separation benefits and job placement support.
“We recognize this is difficult news for our teams in Tualatin and Jeffersonville,” said Toland. “Any action that impacts our people is made with careful deliberation, and we are committed to provide support and assistance during these changes.”
Campbell's joins various consumer goods companies that are looking to streamline their supply chain operations to reduce costs, boost profits, and increase efficiencies.
Under Armour, for example, is scaling back inventory to focus on profit-building and getting products to market faster. As a result, the company expects to get a product from the idea phase to the selling floor in six to 12 months instead of the typical 18-month process.
Also, Estée Lauder has been identifying opportunities for increased efficiency in the supply chain as part of its profit recovery plan in order to drive $1.1 billion to $1.4 billion of incremental operating profit over the next two years. Its plan, the company said, will restore gross margins via inventory optimization and price realization.
