Food and Beverage News: Campbell Soup to close Toronto facility; Food & Beverage Canada launches

Jan. 30, 2018

News from around the food and beverage processing industry

Campbell Soup Company closing Toronto manufacturing facility

Campbell Soup Company announced  Jan. 24 plans to close its manufacturing facility in Toronto to improve the operational efficiency of its North American thermal supply chain network. Campbell will move its Canadian headquarters and commercial operations to a new location in the Greater Toronto area.

Several factors have resulted in excess capacity in Campbell’s North American thermal supply chain network, including significant productivity improvements and volume declines of canned soup in North America, the announcement said. Canadian soup and broth production will be consolidated into the company’s existing U.S. manufacturing network.

Opened in 1931, Toronto is the oldest plant in the Campbell thermal network. Due to its size and age, the Toronto plant cannot be retrofit in a way that is competitively viable, the company said.

Campbell plans to operate the Toronto facility for up to 18 months and will close it in phases, transitioning its production to three U.S. thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris, Texas. Campbell employs nearly 600 people in Toronto including its headquarters, commercial operations and manufacturing functions. Approximately 380 manufacturing and manufacturing-related roles will be impacted.

Food & Beverage Canada launches

A new organization representing more than 1,500 food and beverage processing businesses in Canada was launched to work with governments and other stakeholders on industry priorities. The Ottawa-based "United to nourish the world," Food & Beverage Canada (F&BC) will take a role in shaping public policy and industry actions, according to a press announcement.

"Food & Beverage Canada is bringing businesses together from coast to coast to seize an unprecedented opportunity," said Daniel Vielfaure, F&BC co-chair and managing director, Bonduelle Americas Long Life. "This is Canada’s agri-food century. Canada’s food and beverage manufacturers can play a pivotal role in feeding the world, while growing jobs and economic sustainability for communities in rural and urban Canada."

Leading issues include:

  • Ensuring smart regulations that serve the public interest while maintaining a competitive environment
  • Building a healthier, more sustainable and ethical food system
  • Promoting innovation in food and beverage manufacturing processes
    and practices
  • Creating global trade opportunities for products
  • Protecting and informing consumers while enabling consumer choice
  • Providing skilled jobs and rewarding employment for Canadians

The food and beverage processing industry is the second largest manufacturing industry in Canada in terms of value of production with shipments worth $112.4 billion in 2016 accounting for 18 percent of total manufacturing shipments and 2 percent of the national gross domestic product.

Food processing equipment market to exceed $74B by 2022

According to a new report by Meticulous Research, the food processing equipment market will exceed $74 billion USD by 2022, growing at a compound annual growth rate of 6.1 percent over the next five years. This market is driven by "increasing consumer demand for processed food, growing focus on food safety and safety of workers, rising need to increase productivity, increasing focus of food manufacturers to reduce production cost and government support to promote food processing sector," according to the report. However, high costs of equipment and increasing inclination toward consumption of minimal processed food restricts the growth of this market to some extent.

Well-established meat, poultry and seafood processing equipment are expected to dominate the food processing equipment market.

The Asia-Pacific region is the largest market for food processing equipment due to consistent demand of processed food products in countries such as India, China, Indonesia and Thailand and increasing investments from major food processors.

Frozen bakery market size is anticipated to cross $25B by 2024

Factors such as hectic lifestyle and need for easily consumable products in emerging economies will fuel the frozen bakery market during the forecast period from 2017 to 2024, according to a new research report by Global Market Insights Inc.  The global market size is anticipated to cross $25 billion by 2024.

Further, product innovation and advancement in techniques including hydrocolloids, enzymes and sourdough fermentation to improve quality of these goods will lead to growth in frozen bakery products. Enhanced lifestyle of consumers worldwide is increasing adoption of these products in their daily diet.

Consumers’ preference for eye-appealing, nutritious and longer shelf life products, without compromising in quality and taste has switched manufacturers to frozen bakery products from fresh bakery goods. Additionally, economic growth of some countries is the preliminary driving factor of the market, as consumers have become capable of affording high-priced products with improved shelf life and nutritional value. The product market has led to increase in processed food production and will introduce innovative and diverse range of frozen bakery products.

However, preference for freshly baked and conventional products will obstruct the growth of the product market, according to the report. Health-related problems and concern of maintaining the temperature are other factors that can hinder the global market.

Frozen cakes & pastries are expected to dominate the product market from 2017 to 2024. Increase in import and exports of these products in regions such as Europe and North America will complement its growing market share worldwide.

Asia-Pacific will grow at a significant pace and account for a share of more than 20 percent in the market.

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