Business and commercial: Canada cheese giant axes 2 facilities

Saputo is set to close two plants, which will put about 280 workers on the unemployment lines. The large maker of cheese in Canada stunned the business and commercial world recently with its announcement that it intends to shut down one of its Ontario plants and one located in the Maritimes. The company suggests consumers shying away from dairy products is one of the primary reasons its closing these operations.

The company has also been experiencing increased competition from large stores and manufacturers stateside, Saputo's CEO said. However, the dairy industry overall is feeling the pinch of more consumers choosing non-dairy alternatives. Some companies have been busy re-branding products to lure customers back to their products and to increase sustainability. 

Saputo's CEO said the company has considered acquiring businesses that focus on plant-based alternatives to dairy. No deals have yet been inked. Saputo's Ontario and New Brunswick facilities are earmarked to close in the early part of 2021, and the decision is expected to improve Saputo's operational efficiency. 

Those involved in business and commercial endeavours in Canada need to be mindful of how societal shifts might affect the bottom lines of their businesses. There may be times when entrepreneurs have to shut up shops or open new ones. In either case, the guidance of a lawyer experienced in business law may prove to be invaluable. A lawyer may be able to help a business owner right from the get-go in any negotiations to ensure that his or her legal rights are being protected.

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