US food manufacturer Pinnacle Foods Group is to end production at a pickles factory in Delaware after a decision to focus on branded versions of the product.
Pinnacle said on Friday (25 May) it would stop production at its site in Millsboro towards the end of the year.
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Output at the plant will be “consolidated” into a second factory in Imlay City in Michigan, which makes pickles under the Vlasic brand.
“The company’s decision to focus on its branded Vlasic business and de-emphasise its lower-margin, un-branded pickle business was the catalyst for this consolidation,” Pinnacle said.
Employees affected by the move will be able to apply for open positions at other Pinnacle sites, it said.
The company said it would invest “significant capital” into the Imlay City plant, where new full-time and seasonal jobs would be created.
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By GlobalDataEarlier this month, Pinnacle reported a drop in first-quarter profits after input costs hit its bottom line.
Last April, the company announced plans to close a plant in New York state producing vegetables under the Birds Eye brand.
In December 2010, Pinnacle said it would close its Nalley’s chili production site in Washington state.
