Latest news with #JuddFreitag
Miami Herald
4 days ago
- Business
- Miami Herald
Beloved snack cake maker closing factory
Everyone knows JM Smucker, aka Smuckers, for its jelly and peanut butter spreads, but over the years, the company has also become a leader in the snack aisle. The Ohio-based food giant has added a lineup of household brands to its shelves, including Milk-Bone (for pets), Folgers coffee, Jif peanut butter, and most recently, Hostess snack cakes. Don't miss the move: Subscribe to TheStreet's free daily newsletter You know, the same Twinkies, HoHos, and Ding Dongs that filled generations of lunchboxes and satisfied late-night cravings? In 2023, Smucker gobbled up Hostess Brands in a $5.6 billion deal, betting big on the appeal of sweet snacks, despite the growing popularity of healthier and less sugary foods in the U.S. But even amid that big investment, the company has been working to consolidate operations, and that means making some difficult choices. Smucker announced it will close its Hostess snack cake plant in Indianapolis in 2026, ending almost 70 years of operations there. The plant has produced the most popular Hostess treats for decades. Smucker did not explain why it selected the Indianapolis site for closure, but it's an older facility that may require significant investment to update. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the Hostess business and positioning it for long-term growth," said Senior Vice President Judd Freitag in a statement. Related: Beloved Mexican restaurant closing iconic location after 63 years Smucker did not disclose how many employees will be affected by the closure, but around 260 people work in the Indianapolis location. The company says it plans to shift production to other facilities in its network and will sell the Indianapolis facility by the end of calendar year 2026. There is a broader trend in the food and beverage industry of identifying ways to trim costs. Inflation is squeezing consumer budgets, and they are cutting back on discretionary spending, which includes everything from travel and restaurant meals to non-staple groceries like sweet snacks. Some companies are choosing to close existing locations instead of retrofitting them. So far this year, PepsiCo, Conagra Brands, Post Holdings, and Brown-Forman have all announced plant closures or restructurings. In each case, the companies cited rising costs, the need for operational simplicity, and a shift toward long-term sustainability. Labor costs, ingredient price volatility, and shifting consumer habits are also contributing to the closure trend. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu Shoppers are more frequently visiting discount retailers and buying more private-label brands such as those from Costco and Trader Joe's. These habits pressure large food manufacturers to rethink how they produce, ship, and market their products. Smucker is committed to stabilizing and growing its snacks business, and the Indianapolis closure may be one way to simplify logistics so the brand can remain profitable, even as consumer spending tightens. Related: Nutella adds a new flavor few saw coming The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
4 days ago
- Business
- Yahoo
The J.M. Smucker Co. Announces Plans to Close Indianapolis Manufacturing Facility in Continued Optimization of Sweet Baked Snacks Segment
ORRVILLE, Ohio, May 27, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) announced today plans to close its Indianapolis, Indiana manufacturing facility, which manufactures products from the Company's Hostess® brand, and consolidate operations into other existing facilities. The Company will close and pursue the sale of its Indianapolis manufacturing facility by early calendar year 2026. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the Hostess® business and positioning it for long-term growth," said Judd Freitag, Senior Vice President and General Manager, Pet and Sweet Baked Snacks. "Any decision that impacts our employees is only made after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition." The Company will provide additional information about the decision when it releases its fiscal year 2025 fourth quarter results. About The J.M. Smucker Co. At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin'®, Café Bustelo®, Jif®, Uncrustables®, Smucker's®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin'® restaurants. View original content to download multimedia: SOURCE The J.M. Smucker Co.
Indianapolis Star
5 days ago
- Business
- Indianapolis Star
East side Indy Hostess plant will close by early 2026, J.M. Smucker says
J.M. Smucker has announced plans to shutter the longstanding Hostess plant on the east side of Indianapolis by early 2026, a move that is expected to put hundreds of local workers out of a job. J.M. Smucker, the parent company of Hostess based in Orville, Ohio, said in a May 27 press release it aims to consolidate operations and sell the Indianapolis facility at the corner of 30th Street and Shadeland Avenue Roughly 260 people work at the Indianapolis Hostess plant, according to a facility map on the Smucker website. Since 1957, workers at the east side plant have baked beloved products, beginning with Wonder Bread and later expanding to other Hostess baked goods, like the iconic Twinkies cakes and Donettes mini donuts. The plant changed hands in the 1990s and briefly closed in 2012 due to Hostess declaring bankruptcy before reopening a year later. Hostess Brands, along with the Indianapolis facility, was acquired by the J.M. Smucker Company in 2023. In a statement, J.M. Smucker executives said the closure is part of the company's "Sweet Baked Snacks" strategy, which is focused on growing the Hostess brand and increasing the company's position in the sweet baked goods category at the grocery store. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the Hostess business and positioning it for long-term growth," said Judd Freitag, Senior Vice President and General Manager, Pet and Sweet Baked Snacks. "Any decision that impacts our employees is only made after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition." Indianapolis manufacturing: Roche will put $550 million facility for glucose monitors in Indianapolis, adding 650 jobs The company also makes Hostess products at two plants in Kansas and one site in Georgia. J.M. Smucker will release more information on how it will close and sell the Indianapolis plant on its June 10 earnings call.
Yahoo
5 days ago
- Business
- Yahoo
JM Smucker to close Hostess Brands plant
JM Smucker is set to close its manufacturing facility in Indianapolis, Indiana, as part of the 'continued optimisation' of its sweet baked snacks unit. The facility in question manufactures products under the Hostess brand, which JM Smucker purchased in 2023 in a $5.6bn transaction. The Orrville, Ohio-headquartered company said in a statement that it will shut down the Indianapolis plant and purse a sale of the site by early 2026. Production will be switched to other unspecified factories, JM Smucker added. Judd Freitag, senior vice president and general manager of the pet and sweet baked snacks business unit, said the move is in line with the 'ongoing work to ensure our manufacturing network is optimised to mitigate costs and reduce complexity in support of the execution of our sweet baked snacks strategy, which is focused on stabilising the Hostess business and positioning it for long-term growth'. JM Smucker, which also owns the Folgers, Bustelo and Jif brands, did not provide details about the number of employees that will be affected by the closure. However, Freitag said: 'Any decision that impacts our employees is only made after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition.' The company has faced challenges with Hostess, reporting a third-quarter loss in March after recording goodwill impairment charges exceeding $1bn. JM Smucker posted a net loss of $662.3m for the three months ended 31 January, compared to a profit of $120.4m a year earlier. In August, JM Smucker also announced plans to lay off 79 workers at the Lenexa, Kansas offices of Hostess. Additionally, JM Smucker has been divesting other assets. Following the Lenexa layoffs, the company agreed to sell its cookies brand to Second Nature Brands in an all-cash transaction valued at $305m. The deal included the Voortman Bakery brand, its manufacturing site under lease in Ontario, and approximately 300 employees. JM Smucker acquired Voortman when it purchased Hostess Brands, which had bought Voortman in 2019 for $320m. In February, JM Smucker sold its Cloverhill and Big Texas brands to JTM Foods for around $40m. The transaction included Cloverhill pastries, Big Texas cinnamon rolls, private-label products, and a manufacturing facility in Chicago. "JM Smucker to close Hostess Brands plant " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
27-02-2025
- Business
- Associated Press
The J.M. Smucker Co. Announces Change to U.S. Retail Pet Foods and Sweet Baked Snacks Leadership, and Supply Chain and Manufacturing Oversight
ORRVILLE, Ohio, Feb. 27, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) ('Company') announced today that Judd Freitag will assume leadership of the U.S. Retail Pet Foods and Sweet Baked Snacks segments, effective March 7, 2025. The Company has also announced the evolution of the leadership structure for the supply chain and manufacturing organizations to strengthen oversight and execution. 'The promotion of Judd reflects our commitment to the Hostess® brand and taking the necessary actions to return the Hostess® brand to growth, while continuing to deliver the Pet business,' said Mark Smucker, Chair of the Board, President and Chief Executive Officer. 'In addition, we are evolving the leadership structure of our supply chain and manufacturing organizations to ensure that we remain positioned to deliver best-in-class execution across our portfolio of brands.' As a part of the announcement, Freitag has been promoted to Senior Vice President and General Manager, Pet and Sweet Baked Snacks, an elected Officer of the Company. Freitag has held a series of leadership roles within Finance, Corporate Strategy, and Brand Marketing, and he currently serves as the Vice President, General Manager and Marketing for the U.S. Retail Pet Foods segment. Freitag was instrumental in the turnaround of the Company's U.S. Retail Pet Foods business. He will lead the advancement of the Company's Sweet Baked Snacks strategy to drive growth for the Hostess® brand including, delivering the base portfolio, expanding distribution, driving innovation, continuing our portfolio evolution, and establishing revenue synergies. The Company is also announcing the decoupling of its supply chain and manufacturing organizations to strengthen oversight and execution. Bryan Hutson will assume the expanded responsibility for the Company's supply chain activities in the role of Senior Vice President, Information Services and Supply Chain. Hutson is currently an elected Officer of the Company and oversees Information Services, the Transformation Office, and Portfolio Operations. Randy Day is currently an elected Officer of the Company and will continue to have responsibility for manufacturing as Senior Vice President, Operations. Dan O'Leary, Senior Vice President and General Manager, Sweet Baked Snacks and Pet, will exit the Company, effective March 7, 2025. The Company would like to thank Dan for his many contributions to the organization. The J.M. Smucker Co. Forward Looking Statements This press release ('Release') includes certain forward-looking statements within the meaning of federal securities laws. The forward-looking statements may include statements concerning our current expectations, estimates, assumptions and beliefs concerning future events, conditions, plans and strategies that are not historical fact. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as 'expect,' 'anticipate,' 'believe,' 'intend,' 'will,' 'plan,' 'strive' and similar phrases. Federal securities laws provide a safe harbor for forward-looking statements to encourage companies to provide prospective information. The Company is providing this cautionary statement in connection with the safe harbor provisions. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made, when evaluating the information presented in this Release, as such statements are by nature subject to risks, uncertainties and other factors, many of which are outside of the Company's control and could cause actual results to differ materially from such statements and from the Company's historical results and experience. These risks and uncertainties include, but are not limited to, the following: the Company's ability to successfully integrate Hostess Brands, Inc.'s ('Hostess Brands') operations and employees and to implement plans and achieve financial forecasts with respect to the Hostess Brands' business; the Company's ability to realize the anticipated benefits, including synergies and cost savings, related to the Hostess Brands acquisition, including the possibility that the expected benefits will not be realized or will not be realized within the expected time period; disruption from the acquisition of Hostess Brands by diverting the attention of the Company's management and making it more difficult to maintain business and operational relationships; the negative effects of the acquisition of Hostess Brands on the market price of the Company's common shares; the amount of the costs, fees, expenses, and charges and the risk of litigation related to the acquisition of Hostess Brands; the effect of the acquisition of Hostess Brands on the Company's business relationships, operating results, ability to hire and retain key talent, and business generally; disruptions or inefficiencies in the Company's operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical conflicts (including the ongoing conflicts between Russia and Ukraine and Israel and Hamas), extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages, or other calamities; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company's products or its competitors' products, including changes in consumer preference, consumer litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; and those described under 'Risk Factors' in reports and statements filed by the Company with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update or revise these forward-looking statements to reflect new events or circumstances. About The J.M. Smucker Co. At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin'®, Café Bustelo®, Jif®, Uncrustables®, Smucker's®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically, and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin'® restaurants.
