JM Smucker is set to close its manufacturing facility in Indianapolis, Indiana, as part of the “continued optimisation” of its sweet baked snacks unit.
The facility in question manufactures products under the Hostess brand, which JM Smucker purchased in 2023 in a $5.6bn transaction.
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The Orrville, Ohio-headquartered company said in a statement that it will shut down the Indianapolis plant and purse a sale of the site by early 2026. Production will be switched to other unspecified factories, JM Smucker added.
Judd Freitag, senior vice president and general manager of the pet and sweet baked snacks business unit, said the move is in line with the “ongoing work to ensure our manufacturing network is optimised to mitigate costs and reduce complexity in support of the execution of our sweet baked snacks strategy, which is focused on stabilising the Hostess business and positioning it for long-term growth”.
JM Smucker, which also owns the Folgers, Bustelo and Jif brands, did not provide details about the number of employees that will be affected by the closure.
However, Freitag said: “Any decision that impacts our employees is only made after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition.”
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By GlobalDataThe company has faced challenges with Hostess, reporting a third-quarter loss in March after recording goodwill impairment charges exceeding $1bn.
JM Smucker posted a net loss of $662.3m for the three months ended 31 January, compared to a profit of $120.4m a year earlier.
In August, JM Smucker also announced plans to lay off 79 workers at the Lenexa, Kansas offices of Hostess.
Additionally, JM Smucker has been divesting other assets.
Following the Lenexa layoffs, the company agreed to sell its cookies brand to Second Nature Brands in an all-cash transaction valued at $305m. The deal included the Voortman Bakery brand, its manufacturing site under lease in Ontario, and approximately 300 employees.
JM Smucker acquired Voortman when it purchased Hostess Brands, which had bought Voortman in 2019 for $320m.
In February, JM Smucker sold its Cloverhill and Big Texas brands to JTM Foods for around $40m.
The transaction included Cloverhill pastries, Big Texas cinnamon rolls, private-label products, and a manufacturing facility in Chicago.
