Diving overview:
-
Post Holdings is Post-Consumer Brands Division Plans to Close Cereal Manufacturing Facility in Lancaster, Ohioto reduce capacity.
-
The Lancaster plant employs approximately 200 people and is expected to close by the end of September 2024. Production will be transferred to other post-manufacturing locations.
- The cereal plant closures come as food companies, including Post, reconfigure their manufacturing capacity by opening new plants and closing others to cut costs and increase efficiency across their networks. I was disappointed.
Dive Insight:
This year, several food manufacturers announced the closure of factories and distribution centers, including Utz Brands, PepsiCo, Smithfield Foods, Tyson Foods and Mondelez International.
The Lancaster facility has been part of the Post Consumer Brands business since June 2021, when Post acquired TreeHouse Foods Inc.’s instant cereal business for $85 million.
“We are continually optimizing our network to best serve our customers and consumers,” Post Consumer Brands President and CEO Nicholas Catoggio said in a statement. ” he said. “The closure of this facility will allow Post-Consumer Brands to continue to offer a diverse portfolio of great products at great prices.”
The Post said it is in talks with the union representing employees at its Lancaster facility. The cereal, peanut butter, egg and pet food maker will incur cash and non-cash pre-tax charges of $49 million to $55 million as it moves production to other facilities and accommodates plant closures. I predict that.
Food and beverage manufacturers have been especially active recently in closing older, inefficient facilities with high operating costs and building new, more sophisticated locations to meet the growing demand for their products. I’m here.
Post was no exception. Last year, the company announced plans to spend up to $110 million to expand cereal production capacity at its Nevada facility serving the West Coast.
The St. Louis company, which operates Honey Bunches of Oats and Pebbles and private label products, said the expansion will provide Post with additional capacity to address capacity constraints and meet consumer demand. It said at the time that transportation costs will be reduced to better meet and provide services. Serve your West Coast customers more efficiently.
