US: Campbell Mexico deals to result in 260 job cuts
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.
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Smirnoff Ice gets India launch