Campbell is to cut 260 jobs

Campbell is to cut 260 jobs

Campbell Soup Co has signed a deal with Grupo Jumex and Conservas La Costeña that will expand its beverage manufacturing and distribution capabilities in Mexico but result in the loss of 260 jobs.

The deal, announced today (15 February), will see Conservas La Costeña, one of the largest producers of prepared foods in Mexico, manufacture and distribute Campbell's beverages, soups, broths and Italian sauces. Under the terms of the agreement, Campbell will retain responsibility for consumer marketing, product research and new product development.

Grupo Jumex, one of the largest producer of fruit juices and nectars in Mexico, will manufacture and distribute Campbell's V8 beverage portfolio throughout the Mexican market.

Campbell employs around 330 people in Mexico. However, as a result of entering the agreements, Campbell will close its plant in Villagrán, cutting around 260 jobs.

Production will be transferred to Grupo Jumex and Conservas La Costeña facilities in phases through September.

Rising demand for V8 was one of the few bright spots for Campbell's bevergae division in Q1 results last year.