Flowers Foods, the US-based branded and private-label bakery business, is closing another bun plant.
The bakery in question is located in Baton Rouge, Louisiana, and is operated by the Flowers Baking Co.
Flowers Foods said shipping from the site will continue, although jobs will be lost as a result of the end of bun production.
Darin Allen, the plant manager at the Baton Rouge facility, said in a brief statement provided to Just Food that bakery production will end sometime from 18 September to 1 October.
“Although the company plans to discontinue all baking operations, the shipping department will continue to service customers as part of a broader bakery warehouse network in Louisiana,” Allen said.
“Affected team members are eligible for a severance package and job placement support services to assist with their transition.”
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By GlobalData
This publication has asked Georgia-headquartered Flowers Foods to clarify the numbers involved and the reasons behind the decision to close the bakery.
The company also closed a bread and bun factory in 2022 – the Holsum Bakery arm in Arizona – because Flowers Foods said it was unfeasible to invest in modernising the facility due to cost.
Similar to the Baton Rouge bakery, Flowers Foods said at the time that while production operations would cease, the shipping department “is expected to service customers as part of a broader bakery warehouse network in Arizona”.
The Dave’s Killer Bread brand owner reported first-quarter results in May. Sales revenue was up 2.8% at $1.58bn. Adjusted EBITDA rose 5.5% to $159.4m.
Net income to 20 April increased 3.3% to $73m but was down 0.8% on an adjusted basis at $80.3m.
Chairman and CEO Ryals McMullian said it was a “solid” set of results after he indicated in February – when Flowers Foods reported 2023 figures – a plan to focus on higher margin branded products and continue to cut less profitable products.
“Amid challenging market conditions, our brands continued to thrive, gaining market share as we outperformed the fresh packaged bread category,” McMullian said.
“Initiatives to improve the profitability in away-from-home and private label are also taking hold, significantly expanding margins in those businesses.”
The sales outlook for the 2024 fiscal year was maintained at $5.09bn to $5.17bn, representing 1.6% growth at the top-end and flat at the bottom.
Adjusted EBITDA is envisaged at $524-553m.
