The “difficult” decision — which is expected to generate annual cost savings of $10m by fiscal year 2026 — will help improve margins in the snacks division, said the firm, which said 382 employees work at the two offices, with around 330 roles moving to Camden, some staff moving to production facilities in North Carolina, and some staff having the option to work remotely.
A handful of roles specifically related to the upkeep of the facilities will go, said the firm, although “no commercial roles are being eliminated related to the closing of the Charlotte and Norwalk office buildings."
The company said it would “provide eligible employees with comprehensive relocation support."
President and CEO Mark Clouse said that while Campbell remained committed to its two-division operating model (snacks and meals & beverages), bringing staff together in one location was “the best way for us to continue building a culture that unlocks our full growth potential.”
Each division will have “distinct sections of the campus that celebrate and support their respective identities and business focus,” said the firm, which has been evaluating plans to unify its snacks division following the acquisition of Snyder’s-Lance — which has its HQ in Charlotte — in 2018.
Team members in Charlotte and Norwalk will relocate to Camden in phases starting in mid-2023. For those who choose not to relocate, Campbell will provide job-placement support and severance benefits commensurate with level and years of service, said the firm.
"The decision to close these offices was difficult but it is the right thing to do for our business and culture..." Mark Clouse, president and CEO, Campbell Soup
The move will not, however, impact Campbell’s other operations in Connecticut (it is “actively hiring” at its Pepperidge Farm bakery in Bloomfield) and North Carolina (where it operates sites in Pineville and Maxton), said Clouse: “We have a long history in Connecticut and North Carolina and will continue to have key operations in both states.”
Plans for the Camden HQ — supported by an undisclosed amount of state tax incentives — include a snacks R&D center and pilot plant and a new campus center/gathering place, with construction expected to start in March.
Net sales in Campbell Soup Co’s snacks division increased 15% to $1.12bn in the three months to Oct 30, 2022, driven by strong sales of Goldfish crackers, Snyder's of Hanover pretzels, and Kettle Brand and Cape Cod potato chips; with higher prices partially offset by volume declines.
Net sales in the meals & beverages division increased 15% to $1.46bn.