Arnott’s Group is to boost Campbell’s soup production and export volumes after an $8 million plant upgrade in Victoria.
According to the company, with the new upgrade of the Shepparton site, Arnott’s will be able to increase the manufacture of Campbell’s stocks to an extra 16.5 million kilograms each year, uplifting its production at the Shepparton by 30 per cent and boosting exports four fold.
Although canned-soup consumption in Arnott’s home market has been flat, demand from Asian countries has been growing. The Shepparton plant will take over the production, currently contracted out to an overseas sourcing network, for export to new markets next year including Singapore, the Philippines and Thailand, as well as its existing markets in Hong Kong and Japan.
“We have a rich history in Australian food-making, and this upgrade at Shepparton shows our commitment to making more delicious food right here,” said George Zoghbi, CEO at Arnott’s Group. “We plan to be a regional powerhouse of food brands based in Australia, and Shepparton brings us closer to that goal.
“Declining domestic demand for soup products had meant our Shepparton plant was under-utilised. This upgrade also secures the plant’s medium-term future,” he added.
The project will be completed in three phases, with the first phase online on December 1. This phase will start its soup distribution into Asian market, replacing Campbell’s sourcing networks in the US and Malaysia.
The second phase will start next June with $3.9 million investment injected into the new plant and machinery, producing larger soup can sizes for Asian markets. The remaining of the investment will be used to upgrade plant infrastructure and equipment in the next financial year.