The food processing industry has seen significant restructuring in recent years, with several major players closing manufacturing plants to streamline operations and cut costs.
In 2023, Tyson Foods (TSN) shut down eight poultry plants across multiple states, emphasizing the need to operate efficiently while still meeting customer demand. Similarly, Krispy Kreme (DNUT) closed a manufacturing facility in North Carolina, resulting in layoffs, as part of cost-cutting measures. Hershey (HSY) followed suit by closing its Dot’s Pretzels factory in North Dakota and laying off workers to reduce expenses.
Snack maker Utz (UTZ) also took steps to downsize its operations, closing a manufacturing plant in Pennsylvania and putting others in Indiana, Louisiana, and Alabama up for sale. These actions reflect a broader trend in the industry towards consolidation and optimization.
Additionally, breakfast product maker Kellanova (K) announced plans to close its Eggo frozen food facility in Tennessee by the end of the year, relocating operations to other facilities as part of its restructuring efforts.
Overall, these closures and layoffs demonstrate the industry’s ongoing efforts to adapt to changing market conditions and remain competitive in a challenging environment.
Del Monte closes fruit and vegetable canning plants
Del Monte Foods has announced the closure of its fruit and vegetable canning plants in Toppenish, Wash., and Markesan, Wis., in an effort to align operational capacity with consumer demand. The closures are scheduled to take place at the end of Del Monte’s fiscal year on April 26, 2024. This decision will result in the separation of approximately 90 employees in Wisconsin and 127 workers in Toppenish.
According to Del Monte Foods spokesman Drew McGowan, this decision was challenging but necessary to adapt to changing consumer behavior, which has shifted back to pre-COVID buying habits. The company plans to continue labeling and distribution activities at the plants until fall 2024. Del Monte is currently in negotiations with the Toppenish employees’ union regarding the closure and is committed to supporting affected team members with resources and assistance.
This move reflects Del Monte’s ongoing efforts to address shrinking consumer demand, which has prompted previous plant closures in states such as Indiana, North Carolina, California, Illinois, Minnesota, and Texas in recent years. Despite being a subsidiary of Del Monte Pacific Limited, Del Monte Foods is distinct from other Del Monte-branded companies, including Fresh Del Monte Produce, Del Monte Canada, and Del Monte Asia Pte. Ltd. Del Monte Foods’ portfolio includes brands like Contadina, S&W, College Inn, Kitchen Basics, Joyba, and Take Root Organics.