Food and Beverage Business
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Campbell’s to Shut Down Snack Production Facility in the U.S.

Campbell's to Shut Down Snack Production Facility in the U.S. The Campbell’s Company Food and Beverage Business

The Campbell’s Company is set to shut down its snacks plant in Massachusetts, consolidating potato-crisp production across various other locations in the United States.

In an announcement, the New Jersey-based firm revealed that operations at the Hyannis facility will conclude in April, which will impact 49 employees.

The Hyannis plant produces Campbell’s Cape Cod and Kettle Brand crisps, accounting for approximately 4% of Cape Cod’s total volume. The company stated that continuing operations at this site is no longer economically viable. In response to this transition, Campbell’s plans to enhance production at other Cape Cod factories located in Beloit, Wisconsin; Charlotte, New Connecticut; and Hanover, Pennsylvania.

Elizabeth Duggan, president of Campbell’s snacks, remarked, “This difficult decision reflects a careful assessment of our business needs to strengthen our operations and position our snacks business for long-term growth.”

When asked about the closure by Just Food, James Regan, senior director of communications, emphasized that this move is a “strategic business decision” aimed at fostering the long-term viability of the snacks unit. He confirmed that the Hyannis site will be sold. Additionally, a “small amount” of Kettle Brand production will shift to other company locations.

In its statement, Campbell’s assured that it will offer separation benefits to affected employees, along with job placement assistance and guidance on accessing state support programs. Duggan reaffirmed the company’s commitment, stating, “We are deeply grateful to our team and are committed to provide support and assistance during these changes.”

Operating since 1985, the Hyannis plant became part of Campbell’s portfolio following the 2018 acquisition of Snyder’s-Lance.

Recently, Campbell’s released its first-quarter results, showing another decline in organic net sales and volumes within its snacks segment. For the three months ending November 2, snacks sales decreased by 2% year-on-year to $1.01 billion. Excluding the impact of the Pop Secret divestiture, organic net sales fell by 1%, and the volume/mix also decreased by 3%. The company attributed this decline mainly to lower sales in brands like Snyder’s of Hanover pretzels, Goldfish crackers, and Cape Cod.

However, the decline was partially balanced by increases in Pepperidge Farm cookies, highlighting mixed performance in the snacks sector. In the final quarter of fiscal 2025, net sales rose by 2% year-on-year to $1.12 billion. Nevertheless, excluding the extra week in that quarter and the effect of the Pop Secret sale, organic net sales fell by 2%, with volume/mix down by 5%.

The food and beverage industry continues to evolve, and Campbell’s decisions mirror the broader trends shaping the food and drink business landscape.

 

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