US food manufacturing giant Conagra Brands plans to shut its Birds Eye frozen vegetables facility in Beaver Dam, Wisconsin.
The move is expected to impact all of its 252 workers at the site, according to a WARN notice filed by the company on Monday (8 April).
Conagra said it had decided to cease production at the facility in a bid to “improve efficiencies and effectiveness within its supply chain network”.
“This decision is not a reflection of the overall performance of our Beaver Dam team”, a spokesperson told Just Food.
“We are committed to treating our employees respectfully and fairly throughout this transition, and we will offer severance benefits to employees.”
Production will come to an end by 10 June, while warehouse operations are expected to close on around 3 January 2025.
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Of the total workforce, 227 staff are employed in production and production support at the Birds Eye site, while 25 work in management or administrative roles.
According to the filing, “employee separations” are due to take place in five phases, starting on 10 June and ending on the warehouse closure date next year.
Built in 1972, the facility was taken over by the company through its purchase of Pinnacle Foods in 2018.
Last week, Conagra booked a 1.7% fall in third-quarter net sales to $3.03bn. Organically, net sales dropped 2%.
Nine-month net sales were also down 1.7% at $9.1bn and 1.9% organically.
Third-quarter operating profit stood at $471.4m, versus $490m a year earlier. Adjusted operating profit was $498.4m, against $522.3m in the corresponding period the year previous.
In January, when Conagra posted its second-quarter results, the Slim Jerky maker cut its annual net sales target amid slowing consumer demand. Conagra said it expected its annual net sales to fall 1-2% on an organic basis, compared to its previous forecast of 1% growth. The company maintained that forecast when it published its third-quarter results earlier this month.
Alongside the second-quarter numbers, the Hunts tinned tomato processor announced to analysts that it had planned a “robust and multifaceted” investment for 2024, after posting cuts to profits and sales guidance for the year.
Speaking on the investment plans at the time, CEO Sean Connolly said Conagra would be looking to inject and undisclosed sum into innovation, merchandising and advertisement, as it looked to “build momentum with consumers”.
