Dive Brief:
- Plant-based dairy maker Miyoko’s Creamery is closing its Petaluma, California production plant as it looks to “increase production and efficiency,” according to a statement. The closure is slated for January 2024.
- Around 30-40 employees will be affected as the company is outsourcing its production to other parties.“The company will still be headquartered in Petaluma, we’re just ceasing the manufacturing at our own facility,” said James Joaquin, Miyoko’s Creamery board member.
- The company described the closure as a “difficult decision,” and one that was necessary in order to prepare for “more scalable production capacity and greater efficiencies” to better manage the challenging economic environment.
Dive Insight:
The plant-based category has had its challenges in recent months, with two California startups shutting down operations altogether in September. This latest move by Miyoko’s Creamery is part of a strategy the company says will help it enter its next phase of growth.
The plant-based dairy maker’s new CEO Stuart Kronague’s main goal in her new post was to focus on enhancing the consumer experience and go “back to the basics” by leading the company into its next phase of growth, she said to Food Dive in an August interview.
Miyoko’s has now seen double digit growth over the last few years causing it to search for ways to increase production to meet demand, according to a Press Democrat report.
Working with a co-packer can provide companies with supply chain relief, especially within the food space. Outsourcing the food production can allow for savings in equipment costs and labor costs.
The company said it is still committed to making its high quality dairy vegan alternatives.
“When we (Miyoko’s Creamery) first started … everything was coming out of here and as the brand has expanded … it’s time to onboard into bigger and broader scale opportunities,” Kronauge said to the Press Democrat.
Another focus of Kronauge since taking the helm is overcoming the confusion that is often associated with the plant-based arena by keeping things easy to understand.
The company first came to Marin County in 2014 before it expanded to Petaluma, California two years later.
Since then, Miyoko’s Creamery has gone through a lot of changes — including the ousting of founder and former CEO Miyoko Schinner, which culminated in a lawsuit.
