International Home Foods to Reduce Costs, Improve Efficiency

As part of its strategy to reduce costs and improve operating efficiencies, International Home Foods, Inc. (IHF), Parsippany, NJ, has announced a series of steps that include the closing of its Vacaville, CA, and Clearfield, UT, facilities and the redeployment of the production equipment from the closed facilities into the company's remaining operations.

IHF expects to close the Vacaville production facility in December 1998 and the adjacent distribution center in the first quarter of 1999. Production of a majority of the products currently manufactured at the Vacaville facility will be shifted to other IHF facilities, mainly Milton, PA. IHF will outsource the production of tomato paste and will enter into a third-party manufacturing agreement for the production of Ro*Tel diced tomatoes, both of which are currently manufactured at the Vacaville facility. The Clearfield facility, where IHF currently manufactures Campfire products, will be closed in the first quarter of 1999. The manufacturing of these products will be transferred to the Lakeville, MN, facility that was recently acquired as part of the Grist Mill acquisition. IHF expects the entire process to be completed by the end of 1999.