Smucker investing in Canada

Smucker investing in Canada

J.M. Smucker, the US food manufacturer, is embarking on an investment project in its production network.

The company, with some financial backing from government, is investing in a plant in Canada that manufactures evaporated and condensed milks.

The facility, in Sherbrooke, a city in Quebec, will see changes to equipment in a project set to last until 2021.

"We will be modernising our facility and equipment and introducing new technology that will allow us to enhance the volume and variety of products produced," a spokesperson for J.M. Smucker said. "The facility produces Carnation evaporated milk and Eagle Brand sweetened condensed milk products for Canadian consumers. The facility updates will begin shortly with targeted completion by 2021."

J.M. Smucker manufactures Carnation products under a licencing deal with Nestlé.

A statement issued by the Canadian government said it is putting in "up to CAD1.8m (US$1.4m)" in an initiative in which Smucker is spending CAD11.7m to "expand the plant, and introduce new, high-performance equipment and production systems"

According to J.M. Smucker's most recent annual report, the company "holds number one share positions" across six categories in Canada: flour; pickles and relish; fruit spreads; canned milk; shortening; and ice cream toppings. The report says the brands represent "approximately 50% of net sales in Canada".