Flagship Food Group is to close the production site for its La Tortilla Factory brand in Santa Rosa, California.
The 75,000-square-foot facility is expected to shut its doors indefinitely on 31 March.
Production is being relocated to Flagship’s “existing operations in Moundridge, Kansas, and other California locations we invest in”, it said in a statement.
The Denver-based food group said part of the decision to let the site go was due to “lack of ownership of the Santa Rosa facility and prohibitive land acquisition costs in the area”.
At its Kansas plant, Flagship said it “owns sufficient land with opportunity for future expansion on adjacent open land”.
The site sits on 20 acres of land, the company confirmed to Just Food.
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Alongside the news of the closure, Flagship announced it has started a “large-scale” expansion of its warehousing and shipping operations space at its Kansas plant to further boost production. Construction is expected to finish in April.
The Santa Rosa plant employs 135 people. Flagship confirmed that “some positions” will be kept if they can function remotely.
It is unclear how many jobs could be affected by the closure. The company said the workers “have all been offered a severance package based on length of service”.
“We are also offering job search assistance and communicating with other local companies.”
Commenting further on the decision, Flagship said: “Relocating will safeguard [La Tortilla Factory’s] ability to make the best tortillas at fair prices, while expanding its capacity to reach new customers and serve our existing customers.
“We will continue to create jobs in California through strategic manufacturing operations and our broad distribution and sales offices located in both Northern and Southern California.”
Set up in 1977, La Tortilla Factory produces a range of better-for-you Mexican foods, such as low-carb, grain-free, gluten-free, non-GMO and added-protein tortillas.
It supplies supermarkets across the US including, Walmart, Target, Whole Foods, Sprouts, Kroger, and smaller retailers.
Flagship became a majority stakeholder in La Tortilla in 2021, with the Tamayo family remaining investment partners in the wraps business.
Just Food has asked Flagship to confirm whether the size of its stake in La Tortilla has changed since then.
The company manufactures a range of foods from dips, guacamole, and salsas, to frozen vegetables, fruits and burritos. Its 16 brands include Yucatan Guacamole, Casa del Sol, 505 Southwestern, Lilly B’s, Cabo Fresh and Mama Lupe’s, among others.
It manages five plants and warehouses across Kansas, California and New Mexico. It also owns sales, support and R&D locations in Minnesota, Colorado, California and Idaho.
Last November, the group appointed former Kraft Heinz executive Adam Butler as its new CEO.
