Dive Brief:
- Post Holdings, Inc. will close its Boise, ID, plant, which manufactures PowerBar products for North America.
- Post will sell the operations to third party facilities under co-manufacturing agreements, which is projected to save about $4 million in net pretax annual cash manufacturing cost in the company's fiscal year 2016.
- The move affect around 165 jobs, but Post plans to provide severance packages and transition assistance to these employees.
Dive Insight:
Rob Vitale, Post's president and CEO, said in a statement, "We regret that this decision will impact our employees in Boise, but we believe this is a necessary step to improving the PowerBar® business model, the flexibility of the brand and improving long-term profitability. We remain committed to ensuring that the PowerBar® products continue to be manufactured to the highest quality standards."
Elsewhere in the energy bar sphere in Idaho, Clif Bar commenced construction for a new plant in the state, reports Food Business News.