by Nate Wooley | September 27, 2012 11:56 am
Campbell Soup (NYSE:CPB) today announced the closing of two plants, according to the Associated Press. The move will affect about 700 jobs at the two plants located in Sacramento, Calif., and South Plainfield, N.J. Prior to the cuts, Campbell employed almost 20,000 people worldwide.
Under CEO Denise Morrison, Campbell has been restructuring its operations and revamping its product line and marketing efforts.
The soupmaker, which also owns Pepperidge Farms and popular beverage V8, expects that the annual savings will be approximately $30 million beginning in three years.
The New Jersey plant, which employed 27 people, will close next March, while the California plant will close the following July. The company told workers early this morning at a special meeting.
Canned soup consumption has declined more than 10% over the last 10 years. Fresh soups have presented stiff competition to the canned product. In addition, Campbell’s market share has declined 14% to 53%. Its major competitors include H.J. Heinz (NYSE:HNZ), Kraft (NYSE:KFT) and Wal-Mart (NYSE:WMT).
Other Campbell articles on InvestorPlace:
Campbell Soup Plans a Snack Attack
Campbell’s to Debut 30 New Products in 2013
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