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.
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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.
