Campbell Soup, an American producer of V8 juices, has signed agreements with Grupo Jumex and Conservas La Costeña to expand distribution and manufacturing capabilities for its beverages, soups, broths and sauces in Mexico.
Grupo Jumex, a Mexican producer of fruit juices and nectars, will manufacture and distribute Campbell's V8 juices throughout the country.
Conservas La Costeña, a producer of prepared foods, will manufacture and distribute Campbell's soups, broths and Italian sauces in Mexico.
Under the terms of the agreements, Campbell will retain responsibility for consumer marketing, product research and new product development.
Campbell president and chief executive officer Denise Morrison said: "Our arrangements with these new partners will increase our access to customers and enable us to reach new consumers for our products. We believe that they will redefine the scope of our business opportunities in Mexico."
Campbell Latin America president Humberto Ibarzábal said: "We would like to recognize our employees in Mexico for their significant contributions to our business. Campbell is committed to helping them work through this transition."
As a result of entering into these agreements, Campbell will close its plant in Villagrán, Mexico, and eliminate around 260 positions. However, the company plans to retain approximately 70 positions in R&D, sales, supply chain, marketing and general management.
