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Kraft Bakery Redevelopment (2150 Lake Shore Blvd W @ Park Lawn, First Capital)

AHK

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#1
Announcement regarding closure of the Kraft Bakery at Lake Shore and Park Lawn:

TORONTO, Nov. 1, 2012 /CNW/ - Mondelēz Canada today announced that it intends to close its Lakeshore Bakery in the West End of Toronto in the third quarter of 2013.

The 625,000 square-foot biscuit manufacturing facility, located on Lakeshore Boulevard, has produced a variety of cookies and crackers since 1948.

"This is a difficult decision, given the role this facility has played within our organization and in the community for 64 years. However, the plant faces some unique challenges resulting from the changing neighborhood surrounding the facility," said Alvaro Cuba, VP Operations for Mondelēz Canada.

"While this was an appropriate location for a large bakery when it was first built, the significant residential development surrounding it has led to operating constraints that will become increasingly difficult with the further residential expansion that is underway. With the facility's aging infrastructure, and underutilized manufacturing capacity, further investment is not a viable option. Therefore, we have determined it is best to close the facility because it no longer supports our strategy of making the most efficient use of our manufacturing assets," he said.

This decision will affect about 550 employees who were informed of the company's plans earlier today.

"Our focus right now is on our employees. We're making this announcement almost a year in advance of the planned closure to help provide a smooth transition. We're committed to treating our people fairly and working with them through this difficult time," Cuba said.

As a result of this closure, a portion of the Lakeshore Bakery's production will be moved to Mondelēz Canada´s bakeries in Montreal and East York. The remainder will be split between other current North American biscuit manufacturing facilities and co-manufacturers.

ABOUT MONDELĒZ CANADA

Mondelez Canada Inc. is a snacks leader in Canada, manufacturing and marketing some of the country's best-loved brands. It maintains a strong presence across the country, including manufacturing, distribution and sales operations as well as a head office location. Mondelēz Canada is the Canadian business operation of Mondelēz International, Inc. (NASDAQ: MDLZ), a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages. The company comprises the global snacking and food brands of the former Kraft Foods Inc. following the spin-off of its North American grocery operations in October 2012. Mondelēz International's portfolio includes several billion-dollar brands such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelēz International has annual revenue of approximately $36 billion and operations in more than 80 countries. Visit www.mondelezinternational.com.

SOURCE: Mondelez Canada
For further information:

Stephanie Cass
Mondelēz Canada
416-455-1791 or 1-847-943-5678
 
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#2
and to think only a couple months ago people were talking about this closing for redevelopment.

this could hold a city-place size development, It's huge, at around 28 acres. (cityplace is 55 acres)
 

Filip

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#3
Mall mall mall mall mall mall mall.

In hindsight, I'm very sad to see this go. It has provided for countless morning/evenings that smell like cookies all around the neighbourhood. Then again, this significant parcel of land can finally be used to build a town centre for HBS.
 

interchange42

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#5
This is a huge piece of land, and it means significant changes will be coming for this "gateway" property, located where the Gardiner turns to round Humber Bay. I'm not happy about the lost jobs here. Expect a major uproar in general about what the future will bring here.

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#6
Sad to see 550 people lose their jobs. I wonder what these "operational constraints" that made it "increasingly difficult" to operate at this location?
 
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#7
land became worth more than the things the factory was producing. I hope that whatever replaces this has over 500 people employed.. as sad as it may be for 550 people to lose jobs, a 100,000 square foot office building could replace all of those. this was an extremely low job-land area site so close to the city.
 

Filip

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#8
I've been repeating this over and over.. This parcel of land is ideal for a Shops at Don Mills concept.

Open air mall, a few token condo towers, and an office building or two (nothing tall, 4-5 stories of office) tied with a new GO station.
 

interchange42

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#9
Sad to see 550 people lose their jobs. I wonder what these "operational constraints" that made it "increasingly difficult" to operate at this location?
Local residents don't like the air to smell like baking cookies.

Whatever goes in here, it will mean many more people. Bring on real Regional Rail (GO Transit if it were operated properly, and referred to as CityRail in UrbanToronto front page articles) and a station at Park Lawn/Humber Loop. The area will need it.

BTW, It would be better for a Humbertown Redevelopment concept than a Shops at Don Mills one.

42
 

urbandreamer

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#10
Operational constraints I can think of:

Trucking--getting flour etc supplied & leaving the site. Nightmare traffic.

Condo residents complaining about the noise, traffic etc.

Rise in flour, oil etc prices.

Aging equipment.

I wonder if they're moving to a brand new facility in the Hamilton-Brantford corridor?