Canada Bread to close bakery in British Columbia

by Eric Schroeder
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TORONTO — Canada Bread Co., Ltd. said it will close its fresh bakery facility in Delta, B.C., on Nov. 30 “in order to increase efficiencies and provide new capacity at another bakery for its fast-growing tortilla category.” The closing will affect about 155 employees.

The facility makes a variety of fresh bread products such as pantry bread, rolls, buns and tortillas. Canada Bread expects to wind down operations there beginning in mid-August. Production will be consolidated at the company’s other bakeries in Langley, B.C., and Edmonton, Alta.

To help accommodate the consolidation, Canada Bread said it will invest approximately C$11 million ($11.2 million) to expand the Edmonton bakery to support increased tortilla production.

“These network changes support our focus on both cost reduction and future growth, by increasing our capacity utilization and expanding our production in the high growth tortilla category,” said Barry McLean, president of fresh bakery at Canada Bread. “We regret the impact on our skilled and dedicated employees, and we will provide resources and support to ease their transition to new employment.”

The company said closing costs related to the transaction will total approximately C$4.8 million ($4.9 million), before tax, in 2011. About C$3.1 million ($3.1 million) is expected to be cash expenses, Canada Bread said.
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