Grupo Bimbo to close bakery in Canada Bread reshuffle

08-Mar-2017 - Last updated on 08-Mar-2017 at 12:00 GMT

Grupo Bimbo subsidiary, Canada Bread, is closing one of its bakeries, moving production to another, and has acquired a craft bread maker. Pic: ©iStock/ajijchan

Related tags Canada bread Baking

Canada Bread plans to close its St-Côme-Linière bakery and to transfer roll production from Beauport to Vincent-Massey.

This has been followed by Bimbo’s announcement of the acquisition of craft bread producer Stonemill Bakehouse earlier this week.

Canada Bread Company, the Canadian arm of Mexican baking giant Grupo Bimbo, will close its bakery in St-Côme-Linière, Quebec, on May 19.

Bread production at facility will be transferred to other Canada Bread bakeries in Quebec where there is available capacity, the company said.

St-Côme-Linière employs approximately 56 people and bakes pantry bread.

According to Jennifer Park, VP of Operations, the facility has been losing volume year-over-year.

“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," she said.

Canada Bread Company is a wholly-owned subsidiary of Grupo Bimbo since May, 2014.

It produces packaged sliced breads, buns and rolls, breakfast products, tortillas and gluten-free products, including the brands Dempster’s, Villaggio, POM, Bon Matin, Ben’s, Healthy Way, McGavins and Vachon.

The 106-year-old company operates 18 bakeries and employs more than 4,000 people across Canada.

Keeping production in Canada

Canada Bread is also moving the production of rolls from its bakery in Beauport to its bakery in Vincent-Massey in September.

The Villaggio and Dempster’s maker said the bread baked at St-Côme-Linière and the rolls from Beauport will continue to be produced in Quebec, with the exclusion of one panini SKU, which will be produced by Wholesome Harvest Baking.

Moving into craft bread

Earlier this week, Canada Bread announced its acquisition of Stonemill Bakehouse for an undisclosed sum.

The Toronto-based baking firm produces slow-fermented craft breads baked in stone ovens using “100% natural, non-GMO-certified and organic ingredients,” according to a statement.

Stonemill produces its own grains at its farm in Prince Edward County, near Belleville, and contracts with growers in the area for organic rye and spelt.

Grupo Bimbo said in a statement the deal will “position Canada Bread for further growth, complementing its current product portfolio and its distribution and manufacturing footprint.”