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JM Smucker in Canadian Pickle and Condiment Restructuring Initiative.

29 September 2010 - JM Smucker Company has announced a cost saving restructuring initiative for its Canadian pickle and condiments operations.

As part of the initiative, JM Smucker will shift the majority of its production of Bick's[R] pickles and other condiments products to third-party manufacturers in the US and to its existing manufacturing facility in Ripon, Wisconsin, over the next 12 to 15 months.

In addition, its Dunnville, Ontario, and its pickle tank farm in Delhi Township, Ontario, will close after production is transitioned at the end of 2011.

"These announced actions are expected to further strengthen the Bick's[R] brand in Canada which continues to remain an important part of the Company's portfolio of brands", the company said in a filing with the U.S. Securities and Exchange Commission.

This project, which is in addition to JM Smucker's March 2010 restructuring announcement, could result in a reduction of approximately 150 jobs.

"The Company expects to incur restructuring charges of approximately $45 million over a two-year fiscal period, which is incremental to the amounts announced as part of the March 2010 restructuring initiatives. Nearly one-half of the restructuring charges are expected to be incurred in fiscal 2011, with the remaining charges anticipated to be incurred in 2012. The restructuring charges discussed above include approximately $15 million of expected cash expenditures, primarily employee-related costs. Restructuring cash outlays are projected to be incurred primarily in fiscal 2012. The remaining restructuring charges are noncash items, primarily accelerated depreciation", added the company.
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Geographic Code:1CANA
Date:Sep 29, 2010
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