Move will eliminate 383 jobs at gum maker,
Sharp decline in sales blamed as 52-year-old plant to shut down in 2016, throwing 383 out of work
Chewing gum maker Wrigley Canada said Tuesday that it plans to close its Toronto manufacturing plant in March 2016.
The move will eliminate 383 jobs at the facility, which has been in operation for 52 years.
It comes as the company is reorganizing its supply chain to deal with a sharp decline in sales of chewing gum.
Recent improvements in sales and increased productivity have “not been enough to offset declines in the gum category over recent years,” Wrigley said in a statement, calling the move “a tough decision.”
The facility, located near Leslie St. and Eglinton Ave. E., first opened in 1963. It currently makes some of Wrigley’s most popular chewing gums, including Excel, Extra Professional and 5, as well as Juicy Fruit and Orbit.
About 80 per cent of the plant’s production is shipped to the U.S.
Production at the plant will be reduced in seven phases and job cuts will be staggered as manufacturing is shifted to Wrigley’s Gainesville, Ga., facility, spokesperson Michelle Lefler told the Star in an interview.
The first phase of the closure will begin in May, though the bulk of the job cuts will come this fall, Lefler said.
The company said it will offer “a lengthy period of working notice, favourable severance packages, career transition support, reasonable paid time off to attend job interviews and counselling” to affected employees.
Wrigley Canada will have 200 employees in Canada following the closure of the
From 2009 to 2013, sales of chewing gum fell by about 11 per cent to $3.71 billion (U.S.). Overall candy sales climbed by 10 per cent in that period
plant, Lefler said. The company will maintain a head office in Toronto with staff working in sales, marketing and finance.
Wrigley is owned by candy bar maker Mars, Inc., which has manufacturing facilities in Guelph, Bolton and Newmarket, Ont., and approximately 1,200 employees across Canada.
Industry research shows that chewing gum sales fell by about 11 per cent to $3.71 billion (U.S.) from 2009 to 2013, according to The Associated Press. At the same time, overall candy sales rose by 10 per cent to $31.5 billion.