What's Happening?
Campbell's has announced plans to shut down its manufacturing plant in Hyannis, Massachusetts, which has been operational since 1985. This facility, responsible for producing Cape Cod and Kettle Brand potato chips, accounts for only 4% of the brand's total annual volume. The decision to close the plant is part of Campbell's strategy to optimize its manufacturing network by moving production to more modern and efficient facilities. The company acquired the Cape Cod and Kettle brands through its purchase of Snyder's-Lance Inc. in 2018. Campbell's has been increasing production at other sites, including those in Wisconsin, North Carolina, and Pennsylvania, to accommodate the growth of these brands.
Why It's Important?
The closure of the Hyannis plant reflects Campbell's
broader efforts to streamline its operations and improve efficiency within its Snacks division. This move is part of a larger strategy to address declining sales in the division, which saw a 4% drop in fiscal 2025 and a 2% decline in the first quarter of fiscal 2026. By consolidating production in more efficient facilities, Campbell's aims to reduce costs and enhance productivity, ultimately positioning its Snacks business for long-term growth. The decision also highlights the challenges faced by traditional food manufacturers in adapting to changing market dynamics and consumer preferences.
What's Next?
The Hyannis plant is scheduled to close in April, with production being shifted to other facilities. Campbell's has committed to providing support and assistance to the 49 employees affected by the closure, including separation benefits and job placement support. The company plans to maintain a presence in the Cape Cod community by continuing local investments and honoring the brand's heritage. As Campbell's implements its Snacks turnaround strategy, it will focus on cost control, productivity improvements, and increased innovation and marketing efforts to drive growth in the division.
