Bakery giants Flowers Foods and Bimbo Bakeries USA announced four plant closures, the latest to hit the food sector as manufacturers look to increase efficiencies and cut costs across their networks.
Flowers said it plans to close a bun making facility in Baton Rouge, Louisiana. The company behind Wonder, Tastykake and Mrs. Freshley’s plans to cease production between Sept. 18, and Oct. 1, Darin Allen, plant manager of Flowers Baking in Baton Rouge, said in a statement to Food Dive.
He added that while the company plans to discontinue baking operations at the facility, “the shipping department will continue to service customers as part of a broader bakery warehouse network in Louisiana.”
Affected employees are eligible for a severance package and job placement support services. Flowers did not respond to a request asking why the facility was closing. A Louisiana WARN notice said 70 employees will be affected.
The closure comes a few days after Bimbo Bakeries USA, which makes Entenmann’s and Sara Lee, announced plans to close three of its U.S. bakeries, two in New York and a third in San Antonio, Texas. Production at those bakeries will transition to other locations “that are better equipped to support our future growth,” Bimbo Bakeries USA said in a statement.
The Auburn and Olean closures in New York will impact 131 workers, according to a WARN notice in the state.
“We continuously review and adjust bakery assets and utilization to ensure optimal production,” the packaged food maker said.
Food and beverage producers have been aggressively adjusting their production capacity as they respond to existing demand for their products or to improve efficiency throughout their network to save money. In some cases, that means closing plants while in other instances they are opening new locations or adding on to existing buildings.
This year, Keurig Dr Pepper announced plans to close manufacturing plants in Virginia and Vermont. Last October, the beverage giant announced it would continue the development of its coffee roasting and manufacturing facility in Spartanburg County, South Carolina. At the time, Keurig Dr Pepper said it planned to invest $100 million and create an estimated 250 new jobs by 2027.
Campbell Soup also said in May it was closing one plant and reducing the size of a second facility. The soup and snacks maker also announced it would invest $230 million through fiscal 2026 in newer, more efficient plants as it aims to improve the competitiveness of its supply chain.
