Dive Brief:
- Utz Brands plans to close its manufacturing facility in Grand Rapids, Michigan to cut costs and optimize its supply chain footprint.
- Manufacturing operations will end Jan. 30 and warehouse operations on May 26, the company said in a statement to Food Dive. The closure will affect about 75 people.
- The chip and pretzel maker, which is in the process of consolidating its manufacturing operations, will have seven plants after the Michigan closure. Products made in Grand Rapids will continue to be produced at other Utz facilities.
Dive Insight:
Utz said consolidating its supply network should enable the snack maker to allocate more volume to its larger, more efficient facilities, while improving the company’s automation capabilities. The shuttering of the Michigan plant will not only generate cost savings but also result in an “optimized footprint” to support its geographic expansion.
“The decision is a reflection of our commitment to operational excellence and ongoing transformation,” Utz CEO Howard Friedman said in a statement. “While these types of decisions are never easy, they are necessary steps to streamline our operations and strengthen our supply chain for the long-term.”
Utz has sold or shuttered several plants in the past few years as part of a supply chain overhaul expected to save the company more than $100 million.
Utz said workers are encouraged to apply for opportunities at other facilities.
Earlier this week, Utz reported second-quarter net sales increased 2.9% to $366.7 million, compared to $356.2 million in the prior year period. For its 2025 fiscal year, the Pennsylvania-based company forecast organic net sales growth of at least 2.5%.
As food and beverage manufacturers respond to inflation and look to boost margins, many have responded by closing product manufacturing facilities. PepsiCo, Conagra Brands and Post Holdings are among the firms that have announced closures during the last few months.
