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Campbell Announces Plans to Improve Operational Efficiency of Its North American Thermal Supply Chain Network; Company to End Manufacturing at Toronto Plant

Campbell To Move Canadian Headquarters and Commercial Operations To
New Location in Greater Toronto Area

TORONTO–(BUSINESS WIRE)–Jan. 24, 2018–
Campbell Soup Company (NYSE: CPB) today announced plans to close
its manufacturing facility in Toronto to improve the operational
efficiency of its North American thermal supply chain network. Campbell
will move its Canadian headquarters and commercial operations to a new
location in the Greater Toronto Area.

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Campbell Soup Company announced plans to close its manufacturing facility in Toronto to improve the  ...

Campbell Soup Company announced plans to close its manufacturing facility in Toronto to improve the operational efficiency of its North American thermal supply chain network. Campbell will move its Canadian headquarters and commercial operations to a new location in the Greater Toronto Area. Campbell will continue to make soup and broth recipes tailored to Canadian tastes. (Photo: Business Wire)

Several factors have resulted in excess capacity in Campbell’s North
American thermal supply chain network, including significant
productivity improvements and volume declines of canned soup in North
America. Following a review of its manufacturing operations, the company
has made the decision to wind down manufacturing at its Toronto
facility. Canadian soup and broth production will be consolidated into
the company’s existing U.S. manufacturing network. Opened in 1931,
Toronto is the oldest plant in the Campbell thermal network. Due to its
size and age, the Toronto plant cannot be retrofit in a way that is
competitively viable.

Campbell plans to operate the Toronto facility for up to 18 months and
will close it in phases, transitioning its production to three U.S.
thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris,
Texas. Campbell employs nearly 600 people in Toronto including its
headquarters, commercial operations and manufacturing functions.
Approximately 380 manufacturing and manufacturing-related roles will be
impacted.

Mark Alexander, President, Americas Simple Meals and Beverages, said,
“The decision to stop producing soup and broth in Canada was a difficult
one. After a thorough review, we decided this was the best course of
action for our business. We are operating in an increasingly challenging
environment as our industry’s consumer and retail landscapes continue to
change dramatically. This decision in no way reflects on the talent or
dedication of our team at our Toronto facility, and we are committed to
assisting them through this difficult transition.”

Campbell will offer affected employees support to assist with the
transition by providing severance packages that recognize their
commitment and service. The company will provide career counseling with
employment advisors who can assist with job searches, resume writing and
preparing for interviews. Campbell will also host job fairs and provide
on-site financial planning workshops, among other benefits, to assist
employees with the transition.

Ana Dominguez, President of Campbell Canada, informed employees at a
meeting held at the plant. She said, “Today is a tough day. We are
committed to treating our employees with the respect and fairness they
deserve. Despite this decision, Canada is important to Campbell. We are
remaining in Canada and will continue to make important contributions to
the food industry in this country.”

Opening New Canadian Headquarters

Campbell will relocate its Canadian headquarters, along with nearly 200
roles, in the next several months. Site selection is underway for a new
location in the Greater Toronto Area, which will feature a new Food
Innovation Center. Campbell will continue to make soup and broth recipes
tailored to Canadian tastes.

The decision to stop manufacturing in Toronto is part of a
previously-announced cost savings initiative. As of Oct. 29, 2017,
Campbell has generated $345 million in annual ongoing cost savings from
this multi-year initiative, and is investing a portion of the savings
back into the business. Additional details on the program will be
provided in a Form 8-K, which will be filed with the Securities and
Exchange Commission today.

Campbell currently employs approximately 18,500 people worldwide.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens
, Garden Fresh Gourmet and Pacific Foods.
Founded in 1869, Campbell has a heritage of giving back and acting as a
good steward of the planet’s natural resources. The company is a member
of the Standard & Poor’s 500 and the Dow Jones Sustainability Indexes.
For more information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

FORWARD-LOOKING STATEMENT

This release contains “forward-looking statements” that reflect the
company’s current expectations about the impact of its future plans and
performance on the company’s business or financial results. These
forward-looking statements rely on a number of assumptions and estimates
that could be inaccurate and which are subject to risks and
uncertainties. The factors that could cause the company’s actual results
to vary materially from those anticipated or expressed in any
forward-looking statement include (1) changes in consumer demand for the
company’s products and favorable perception of the company’s brands; (2)
the risks associated with trade and consumer acceptance of product
improvements, shelving initiatives, new products and pricing and
promotional strategies; (3) the impact of strong competitive responses
to the company’s efforts to leverage its brand power with product
innovation, promotional programs and new advertising; (4) changing
inventory management practices by certain of the company’s key
customers; (5) a changing customer landscape, with value and e-commerce
retailers expanding their market presence, while certain of the
company’s key customers continue to increase their significance to the
company’s business; (6) the company’s ability to realize projected cost
savings and benefits from its efficiency and/or restructuring
initiatives; (7) the company’s ability to manage changes to its
organizational structure and/or business processes, including selling,
distribution, manufacturing and information management systems or
processes; (8) product quality and safety issues, including recalls and
product liabilities; (9) the ability to complete and to realize the
projected benefits of acquisitions, divestitures and other business
portfolio changes; (10) the conditions to the completion of the
Snyder’s-Lance acquisition by the company, including obtaining
Snyder’s-Lance shareholder approval, may not be satisfied, or the
regulatory approvals required for the acquisition may not be obtained on
the terms expected, on the anticipated schedule, or at all; (11)
long-term financing for the Snyder’s-Lance acquisition may not be
available on favorable terms, or at all; (12) closing of the
Snyder’s-Lance acquisition may not occur or may be delayed, either as a
result of litigation related to the acquisition or otherwise; (13) the
company may be unable to achieve the anticipated benefits of the
Snyder’s-Lance acquisition; (14) completing the Snyder’s-Lance
acquisition may distract the company’s management from other important
matters; (15) disruptions to the company’s supply chain, including
fluctuations in the supply of and inflation in energy and raw and
packaging materials cost; (16) the uncertainties of litigation and
regulatory actions against the company; (17) the possible disruption to
the independent contractor distribution models used by certain of the
company’s businesses, including as a result of litigation or regulatory
actions affecting their independent contractor classification; (18) the
impact of non-U.S. operations, including trade restrictions, public
corruption and compliance with foreign laws and regulations; (19)
impairment to goodwill or other intangible assets; (20) the company’s
ability to protect its intellectual property rights; (21) increased
liabilities and costs related to the company’s defined benefit pension
plans; (22) a material failure in or breach of the company’s information
technology systems; (23) the company’s ability to attract and retain key
talent; (24) changes in currency exchange rates, tax rates, interest
rates, debt and equity markets, inflation rates, economic conditions,
law, regulation and other external factors; (25) unforeseen business
disruptions in one or more of the company’s markets due to political
instability, civil disobedience, terrorism, armed hostilities, extreme
weather conditions, natural disasters or other calamities; and (26)
other factors described in the company’s most recent Form 10-K and
subsequent Securities and Exchange Commission filings. The company
disclaims any obligation or intent to update the forward-looking
statements in order to reflect events or circumstances after the date of
this release.

Source: Campbell Soup Company

Campbell Soup Company
INVESTOR CONTACT:
Ken
Gosnell, 856-342-6081
[email protected]
or
MEDIA
CONTACT:
Thomas Hushen, 856-342-5227
[email protected]