Campbell Soup Co. plans to invest $230 million over the next three years to enhance the efficiency and effectiveness of its manufacturing and distribution network.

As part of that effort, the Camden-based soup and snack giant will focus on upgrading manufacturing facilities and distribution sites across the U.S. as well as leveraging its network of co-manufacturing partners.

Campbell announced the supply chain optimization plan in a May 28 press release. The company also said it will shutter a plant in Tualatin, Ore., that produces Pacific’s organic soup, broth and plant-based beverages.

The company described the 250,000-square-foot site as an “aging facility” that has a configuration that can no longer “support the increased consumer demand and continued growth of the business.”

Campbell will close the location in phases starting in August and expects to cease operations by July 2026. Altogether, 330 workers will be impacted, according to Campbell.

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.

Capital investments

Meanwhile, Campbell will reorganize its Jeffersonville, Ind., plant to specialize in the production of Late July tortilla chips and regional snack brands. Kettle potato chip production will relocate to Campbell sites in Charlotte, N.C., and Hanover, Pa. The change goes into effect in July. It will impact 85 of the 230 employees at Jeffersonville, Campbell said.

Campbell is also making capital upgrades at newer facilities in its network. Of the $230 million the company plans to invest in supply chain improvements, it has already spent $80 million.

The projects are expected to create 210 new roles across the company. They include:

• $150 million for new aseptic soup production at Maxton, N.C.
• $72 million for additional potato chip kettles at Hanover, Pa.
• $8 million to expand capacity for tortilla chips at Franklin, Wis.

In addition to these investments, the company previously announced plans to expand production of Goldfish crackers at its Richmond, Utah plant. The new line is expected to be operational by the end of 2024. It will increase the bakery’s output of Goldfish by 50% and will add approximately 80 new jobs at the site.

Hard decisions

In a statement, Campbell Chief Supply Chain Officer Dan Poland said, “To fuel growth and transform our manufacturing and distribution network, we must invest and further strengthen our supply chain”

“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,” he said.

In total, the closure of the Tualatin site and the changes to the Jeffersonville plant will impact 415 workers, according to Campbell. Affected employees will receive separation benefits and job placement support, the company said.

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.”