US-based food company Campbell Soup has entered into agreement with Grupo Jumex and Conservas La Costea to expand its manufacturing and distribution capabilities in Mexico for its beverages, soups, broths and sauces.
Grupo Jumex, a producer of fruit juices and nectars in Mexico, will manufacture and distribute Campbell's 'V8' portfolio throughout the region, while Conservas La Costea, a prepared foods producer, will manufacture and distribute Campbell's soups, broths and Italian sauces.
Under the terms of the deal, Campbell will be involved in 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."
As part of this arrangements Campbell will shut down its facility in Villagrán, Mexico, which will result in 260 job losses. The production from Villagrán plant will be moved to Grupo Jumex and Conservas La Costea facilities in phases through September 2013.
The company plans to retain about 70 positions in R&D, sales, supply chain, marketing and general management. It expects to record a restructuring charge of $9m, which will be incurred in the second quarter of 2013.
