Pinnacle Foods to improve supply chain with consolidation of its factories

In a move the company hopes will lead to further supply chain efficiency, Pinnacle Foods Group LLC announced that it will fortify its manufacturing processes, shifting the production of its chili and bean offerings from Tacoma, Washington to its canned meat plant in Madison, Iowa.

In 2009, Pinnacle Foods acquired Bird Eye Foods. With the acquisition, the company owned two meat canning plants that both produced similar products and had excess production capacity. With the merging of the two factories, Pinnacle Foods asserts that it will achieve a more efficient supply chain.

Acknowledging that some manufacturing jobs will be lost, Mark Schiller, president of the Pinnacle Foods Duncan Hines grocery division, affirmed that "the difficult decision to close the Tacoma facility was made only after a thorough analysis of all options." In Iowa, the company will add a 17,000 square foot extension to its current warehouse so it can ratchet up its production and ensure that it achieves further supply chain efficiencies.

Pinnacle Foods chose Iowa as its manufacturing hub because it is geographically close to the ingredients the company uses and it has the best production capabilities. Consumers who worry that the quality of their favorite canned meats will decline should fear not: the company avers that it will continue to make its products "using the same great tasting recipes."