Popular cereal brand closes plant, downsizes in restructuring

Great food processors had been combating the with out hassle of inflation, rising prices and transformations in buyer demand over the amazing couple of years that has led some to close manufacturing flowers to in the reduction of rates and preserve away from economic smash.

Del Monte Meals in April 2024 closed its Toppenish, Wash., and Markesan, Wis., fruit and vegetable canning flowers to align and streamline operational potential with buyer demand, the manufacturer observed in a announcement at the time.

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The manufacturer observed that labelling and distribution hassle to do would continue at the flowers except fall 2024.

Tyson Meals (TSN) in 2023 closed eight chook flowers put in Arkansas, Florida, Indiana, Missouri, South Carolina and Virginia. The manufacturer observed it used to be "reallocating sources to function as efficiently as that possible take into accout, even as as sustaining plentiful potential to serve our prospects."

Krispy Kreme (DNUT) also in 2023 closed a producing facility in North Carolina and laid off 102 group, even as as Hershey (HSY) closed its Dot's Pretzels factory in North Dakota to in the reduction of rates and laid off 27 group. Every completely assorted snack maker Utz (UTZ) closed a producing plant in Pennsylvania and put completely assorted flowers in Indiana, Louisiana and Alabama up for sale as portion to a neighborhood downsizing.

Extra currently, Flowers Meals, which operates great bakeries Ask yourself, Tastykake and Mrs. Freshley's, in July observed that it'll close its bun making plant in Baton Rouge, La., between Sept. 18 and Oct. 1. The closure will consequences 70 group.

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The manufacturer observed it would continue to function its transport branch at the plant as portion to its Louisiana bakery warehouse neighborhood.

Every completely assorted baker, Bimbo Bakeries USA, which produces Entenmann's and Sara Lee items, also in July observed that it'll close bakeries in Auburn and Olean, N.Y., and San Antonio, Texas.

Faster or later, iconic breakfast cereal manufacturer WK Kellogg (KLG) , makers of Kellogg's Frosted Flakes, Rice Krispies and Froot Loops, is restructuring its operations, in order to encompass a phased reduction of creation in order that you with out hardship may bring about a closing of its Omaha, Neb., manufacturing plant in 2026, the manufacturer observed in an Aug. 6 announcement.

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The manufacturer may cut down creation at its Memphis, Tenn., plant starting in late 2025 in order that you with out hardship may culmination in a higher focused, streamlined facility.

Furthermore the plant closure and lowered creation at the Omaha and Memphis capabilities, WK Kellogg plans to put money into new infrastructure, device, technology, and capabilities at its Wrestle Creek, Mich.; Belleview, Ontario; and Lancaster, Pa.; flowers with plans to boost creation at those locations.

The plant closure and lowered creation will culmination internal the elimination of about 550 jobs, inclusive of any headcount additions at flowers where creation would elevate, the announcement observed.

The manufacturer plans to spend $450 million to $five hundred million on its furnish chain modernization efforts, which consists of capital rates of up to $390 million and a one-time cash restructuring and non-restructuring rates of about $100 and ten million.

In its second quarter ended June 29, WK Kellogg pronounced net cash of $31 million, a 14.Eight% elevate 12 months-over-12 months, on $672 million in net cash, which used to be a 3.9% decline 12 months-over-12 months.

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