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In the Soup

Campbell soup is reportedly closing another plant… This time in Canada [1]

Campbell’s Soup Co. will close its 87-year-old Toronto factory and shift production to the United States amid a decline in soup consumption.

About 380 manufacturing jobs will be lost when the factory in south Etobicoke closes within 18 months, the company said on Tuesday.

Ana Dominguez, president of Campbell Canada, said the Canadian market will be served by Campbell Soup’s larger, more efficient plants in Maxton, N.C., Napoleon, Ohio, and Paris, Tex. The shift will not result in any job gains at the U.S. plants. “We produce more soups than we can actually sell,” Ms. Dominguez said by phone.

Let’s break this down just a little bit…

Campbell’s about 2 years ago now, closed the Sacramento, CA plant. Reason being, cost of operation. Over-regulation, over taxation, over unionization.

The plant at Etobicoke was under serious consideration for being closed, even back in those days, and for precisely the same reason as Sacramento was closed… The cost of operation was simply too high… But, Sacramento was slightly more costly and so was the first to get axed.

Meanwhile, Texas, being a low text low regulation state, remains a viable plant for Campbell’s soup.

Anyone trying to sell you more than that, is trying to defend big government, high taxes, and Draconian regulations.