Pinnacle Foods Group Announces Supply Chain Improvements

The company’s decision to focus on its branded Vlasic business and de-emphasize its lower-margin, un-branded pickle business was the catalyst for this consolidation.

28 May 2012 --- Pinnacle Foods Group LLC announced plans to further improve the efficiency of its supply chain by consolidating its Vlasic pickle production into one plant in Imlay City, Michigan. The company’s decision to focus on its branded Vlasic business and de-emphasize its lower-margin, un-branded pickle business was the catalyst for this consolidation.

Pinnacle’s other pickle production plant, located in Millsboro, Delaware, will plan to end production around year-end. “It is never an easy decision to close a plant. We came to this conclusion only after a detailed analysis of all potential options, which determined that the Imlay City plant is the most viable choice for the long term,” said Tony Fernandez, EVP and Chief Supply Chain Officer. “The employees in Millsboro have been a valued part of our business and their dedication and contributions to the company are appreciated,” he said.

Pinnacle Foods is committed to treating all employees with fairness and respect during the transition. All Millsboro employees will have the opportunity to apply for open positions at other Pinnacle facilities, as well as to receive professional career support services. Pinnacle Foods will meet with union officials at the Millsboro plant to discuss specifics of the transition. A minimum of 60 days notice prior to final closure of the plant will be provided to all Millsboro employees.

To enable the transition to the Imlay City plant, Pinnacle Foods will be investing significant capital to increase capacity, upgrade existing manufacturing capabilities and improve efficiencies. This will result in the creation of new full-time and seasonal jobs.