Ontario: Province Partnering with Dr.Oetker Canada

Toronto / CA. (gov) Canada’s province of Ontario is partnering with Dr. Oetker Canada, a multinational food and foodservices business, to support a new, high-speed frozen pizza manufacturing line that will help to create 103 jobs and retain 115 positions and boost competitiveness in London.

The investment through Ontario’s Jobs and Prosperity Fund will help Dr. Oetker Canada invest in a new production line that includes dough preparation, baking, toppings, freezing and packaging equipment. The new line will be unique in that it will use high-speed press technology to manufacture both the smaller (1 to 2 serving size) and the larger (family-size) pizzas. The overall production rate of the facility will nearly double from 10’000 to 18’000 pizzas per hour.

Supporting a strong and innovative food processing sector is part of the government’s plan to support care, create opportunity and make life more affordable during this period of rapid economic change. The plan includes free prescription drugs for everyone under 25, and 65 or over, through the biggest expansion of medicare in a generation, free tuition for hundreds of thousands of students, a higher minimum wage and better working conditions, and free preschool child care from 2 1/2 to kindergarten.

Quick Facts

• Ontario is investing up to CAD 7 million in this project through the Jobs and Prosperity Fund – Food and Beverage Growth Fund. The investment will help to increase the amount of Ontario inputs that Dr. Oetker Canada uses from CAD 9.4 million to CAD 23.3 million per year, which will have a significant impact on the agri-food supply chain.
• As part of the Jobs and Prosperity Fund, the Food and Beverage Growth Fund supports food, beverage and bio-product manufacturing projects that help create and retain jobs, increase domestic and export market access and enhance innovation and productivity.
• Dr. Oetker Canada Limited is the Canadian division of the Oetker Group, a multinational food and foodservices corporation with headquarters in Germany and operations throughout Europe, Asia and the Americas. Canadian operations are located in Mississauga, Ontario.
• Since 2013, the Jobs and Prosperity Fund has committed more than CAD 830 million to 35 projects, leveraging over CAD 10.9 billion in total investment, which is helping to create and retain over 46’000 jobs.
• Ontario is home to Canada’s largest food processing sector, accounting for more than 4’000 businesses locations that employ almost 94’500 people across the province.

Commenting on the Support …

Jeff Leal, Minister of Agriculture, Food and Rural Affairs, said: «Our government’s investment in Dr. Oetker Canada Limited will help secure a CAD 54.5 million foreign direct investment in Ontario’s food processing sector and position the plant to compete globally. This will in turn help create and retain jobs, boost London’s local economy and support the competitiveness and further growth of Ontario’s agri-food sector».

Steven Del Duca, Minister of Economic Development and Growth, said: «This support for Dr. Oetker Canada demonstrates how strategic partnerships through the Jobs and Prosperity Fund leverage much larger private sector investments in our key industry clusters. By enhancing technology, the London plant becomes more competitive and generates increased economic activity throughout the agri-food supply chain».

Cécile Van Zandijcke, Executive Vice President, Dr. Oetker Canada Limited, said: «Dr. Oetker has been committed to Canada since 1960. Receiving this support from the province will strengthen our capacity to further innovate, and drive exports. It will also translate into the ability to continue to serve our Canadian customers and consumers with premium quality products in a sustainable and competitive manner».
 

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Addendum: Dr. Oetker to Close Manufacturing Plant in Grand Falls

Mississauga / CA. (01.31. / oe) As follows, Dr. Oetker Canada announced on January 31 that it will close its leased pizza manufacturing plant in Grand Falls, New Brunswick, at the end of May, 2018.

Dr. Oetker is committed to taking care of their Grand Falls employees as they transition toward the plant’s closure.

Employees will receive a severance package that exceeds the statutory requirements in addition to employment counselling, resume support and career planning assistance. The Company will continue group medical and dental benefits until December 31, 2018.

Dr. Oetker will also establish a CAD 4 million Grand Falls Community Fund to assist with job retraining and economic development, working with all levels of government including the Mayor of Grand Falls.

«We care deeply about the people on our Grand Falls team and we will sit down individually with them to discuss their own specific path forward», said Dr. Oetker’s Executive Vice President Cécile Van Zandijcke. «That will be our immediate focus now».

The retail food climate in which Dr. Oetker operates has become increasingly challenging in recent years both in terms of price and cost, adding significant additional pressures in the manufacturing environment.

«This very difficult announcement does not reflect on the quality of work and dedication of our Grand Falls employees. There is nothing our Grand Falls employees could have done differently. Food manufacturers have been facing severe economic pressures over the last few years and today’s market has become ultra-competitive. In order for Dr. Oetker to continue operating efficiently within this challenging environment, we needed to restructure our Canadian Manufacturing Operation», said Van Zandijcke.

Dr. Oetker’s commitment to Canada remains strong. Most of the Grand Falls manufacturing will remain in Canada. The company reaffirms that an estimated 70 percent of the manufacturing will transition to its owned Hub production facility in London, Ontario, while 30 percent of production will move to its Lodi, New Jersey plant.

«This is a difficult day for our Grand Falls employees and our main objective will be to assist them in this transition. We will ensure the CAD 4 million Community Fund is used to provide our employees and the broader Grand Falls community with all the help and assistance they need now and moving forward», said Van Zandijcke in January.

About Dr. Oetker Canada

Since 1960, Dr. Oetker Canada Limited has provided innovative quality food products to Canadian consumers. Recognized as one of the fastest growing food manufacturing companies in Canada, Dr. Oetker produces and distributes a variety of dessert mixes and baking ingredients (Shirriff and Dr. Oetker branded) and frozen pizzas (Ristorante, Casa di Mama and Giuseppe). The Canadian company is a subsidiary of the family-run Oetker Group. Established in 1891 with the launch of Germany’s first baking powder, today Dr. Oetker carries out a legacy rooted in the belief that «quality is the best recipe» and a commitment to building a sustainable presence in the countries in which it does business. In 2016, worldwide Dr. Oetker sales were CAD 3 billion.