Amy’s Kitchen, a US-based organic food company, has paused its food manufacturing and packaging centre project in New York State.
The decision comes amid industry challenges, including changes in demand for its frozen meals and canned soups.
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The centre, located in Goshen, Orange County, was initially launched in 2019.
Since 2013, Amy’s Kitchen has invested more than $33m in infrastructure, including sewer and water connections, traffic, and road improvements and building preparations.
However, global events such as the Covid-19 pandemic and inflation have impacted production needs for its frozen meals and canned soups, leading to the current pause.
In a statement to Just Food, Amy’s Kitchen said: “We have made the tough decision to pause our project, and we are still considering our options and timelines. No decision has been made about the project’s future direction.”
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By GlobalDataThe pause follows the company’s announcement in October to lay off over 300 employees in its domestic market, citing macro-economic pressures.
At the time, Amy’s Kitchen, founded in 1987, said: “Like all food companies, we are navigating industry headwinds, so we made this strategic decision to rebalance our business.”
These developments come after the closure of a facility in San José two years ago, which was initially leased to meet rising demand for pizza products during the pandemic due to changes in consumer habits.
Amy’s Kitchen attributed the San José closure to supply-chain disruptions and “abrupt” cost increases, which made the site financially unsustainable.
Earlier this month, Amy’s Kitchen introduced five new soups inspired by international cuisines and southern American favourites.
