Bakery Volume to Remain in Quebec
TORONTO, Ontario - February 21, 2017 - Canada Bread Company, Limited today announced plans to close its bakery in St-Côme-Linière, Quebec on May 19, 2017. Products made at the St-Côme-Linière bakery can be baked at other bakeries in Quebec where there is available capacity.
"Our industry is under mounting competitive pressure to become more efficient and this means we have to make very difficult decisions," said Jennifer Park, Vice President, Operations, Canada Bread. "We have been losing volume year-over-year in this facility and have made every effort to maintain the facility. As a result, we must consolidate the volume into another bakery in Quebec where we bake the same products and have the capacity to take on this volume. While this is the business reality, it is hard to make the necessary changes. We are doing everything possible to ease the impact on our people."
Canada Bread is also moving roll-line production from its bakery in Beauport to its bakery in Vincent-Massey, which is located 10 kilometres away in Quebec City effective September, 2017. We expect that the majority of associates will transfer to Vincent-Massey by March, 2018 when we begin roll production to meet the summer season peak demand.
The bread baked at St-Côme-Linière and rolls from Beauport will continue to be baked in Quebec, with the exclusion of one Panini SKU being absorbed within Wholesome Harvest Baking's existing network. Jobs and production will not be moved to other parts of Canada or other countries.
The facility in St-Côme-Linière employs approximately 56 associates and bakes pantry bread. Affected associates will receive severance packages, as well as personal counselling and ongoing outplacement services and workshops. They will also be encouraged to seek employment at other Canada Bread facilities.
Canada Bread Company, Limited, a wholly-owned subsidiary of Grupo Bimbo since May, 2014, is a leading producer and distributor of packaged fresh bread and bakery products with brands such as Dempster's®, Villaggio®, POM®, Bon Matin®, Ben's®, Healthy Way®, McGavins® and Vachon®. In business for more than 100 years, the Company operates 17 bakeries and employs approximately 4,125 associates across Canada. It distributes its products through a network of more than 1,200 routes operated by more than 1,100 independent operators and some corporate associates. For more information, please visit www.canadabread.com.
To coordinate an interview with a Canada Bread spokesperson on Tuesday, February 21, please contact:
Sylvia Sicuso, Senior Communications Manager
Canada Bread Company, Limited
Media Hotline: (416) 626-4316
Monday to Friday between
9 a.m. and 5 p.m. EST.