The Campbell’s Company plans to close its Massachusetts snacks plant and consolidate potato-crisp production across other sites in the US.
In a statement yesterday (29 January), the New Jersey-headquartered company said operations at the Hyannis facility are expected to end in April, impacting 49 workers.
The site produces Campbell's Cape Cod and Kettle Brand of crisps. The plant manufactures around 4% of Cape Cod's total volume of crisps and the factory “no longer makes economic sense”, the listed food giant added.
Meanwhile, Campbell's said production at other Cape Cod factories, namely Beloit in Wisconsin, Charlotte in North Carolina and Hanover in Pennsylvania, had been increased.
Campbell’s snacks president Elizabeth Duggan said: “This difficult decision reflects a careful assessment of our business needs to strengthen our operations and position our snacks business for long-term growth.”
In a response to questions posed by Just Food, communications senior director James Regan said the closure of the Hyannis facility is a “strategic business decision” to help “long-term operations" of the snacks unit, confirming the site will be sold.
A "small amount" of the Kettle Brand production will also switch to other company sites, he said.
Campbell’s said in its statement that it will provide separation benefits for the impacted workers, job placement support, and guidance on how to access state assistance programmes.
“We are deeply grateful to our team and are committed to provide support and assistance during these changes,” added Duggan.
The Hyannis plant has been operating since 1985. The Cape Cod brand became part of Campbell’s portfolio through the company’s 2018 acquisition of Snyder’s-Lance.
Campbell's reported its first-quarter results in December, with another decrease in organic net sales and volumes for snacks.
In the three months to 2 November, snacks sales fell 2% year-on-year to $1.01bn. Excluding the impact of the Pop Secret divestiture, organic net sales declined 1%. Volume/mix fell 3%.
Campbell’s attributed the decline mainly to lower sales in third-party partner and contract brands, Snyder’s of Hanover pretzels, fresh bakery, Goldfish crackers and Cape Cod.
However, declines were partly offset by gains in Pepperidge Farm cookies.
It was a mixed bag for snacks sales in the final quarter of fiscal 2025.
Net sales rose 2% year-on-year to $1.12bn. However, excluding the additional week in the quarter and the impact of the Pop Secret divestiture, organic net sales declined 2%. Volume/mix fell 5%.
