Oftentimes in businesses, changes are necessary in order to grow. Maple Leaf Foods is making moves on its expansion plans with a strategic sale of its poultry plant in Drummondville, Quebec, Canada, and associated supply to Giannone Poultry of St. Cuthbert, Quebec.
“Core to Maple Leaf's strategy is sustainable and value-added meat protein products,” said Michael McCain, President and CEO. “Over the past few years, our leadership position in this category has grown; however, we are focused on prioritizing capital and optimizing our processing network. The sale of the Drummondville facility is an outcome of our continued network optimization.”
As part of the sale, Maple Leaf Foods and Giannone have reached a three-year supply agreement that will allow Maple Leaf Foods to maintain its supply of fresh chicken.
According to the press release, Maple Leaf Foods acquired the plant and supply in 2018 with the purchase of select Cericola Farms assets. Now, Maple Leaf Foods will continue to own and operate the Bradford, Ontario, poultry plant that was also acquired in connection with the 2018 Cericola purchase.
The sale of the Drummondville plant is expected to close this summer subject to normal closing conditions and usual regulatory processes. No price was mentioned in the press release.
As developments from the meat industry as well as dairy and specialty arise, Deli Market News will continue to report.