Dive Brief:
- Nerds maker Ferrara said it will close a Chicago manufacturing plant next April as the sweets maker navigates tough market conditions and rethinks its “long-term innovation roadmap.”
- An estimated 154 workers will be impacted by the closure of the 31st Street plant, according to a WARN notice filed in Illinois. Employees can apply for open positions across Ferrara, the company said.
- The plant manufactures Funables Fruity Snacks and Stretch Island Fruit Strips, according to the company. None of these products are being discontinued, and production will transition to other facilities.
Dive Insight:
As food and beverage companies deal with a slowdown in shopper spending and changing consumer buying habits, more businesses are looking to lower costs by streamlining their manufacturing footprints.
PepsiCo, Nestlé, Diageo and Tyson Foods are just a few of the companies that have announced closures this year.
Ferrara’s decision to shutter the 31st Street facility was especially difficult, the company said, because the candy giant was founded in Chicago and has maintained a presence in the city for nearly 120 years. The company closed a Jelly Belly plant in Chicago in 2024, though it still maintains its Forest Park site, which produces iconic candies such as Lemonheads.
“We remain committed to Chicago, home to our global headquarters. This closure is not expected to impact Ferrara brands, product availability, or service to our customers,” the company said in an email to Food Dive.
This is the second time Ferrara has moved Stretch Island fruit strip production since purchasing the brand in 2019. The candy company transitioned production from Georgia to the Chicago plant in 2020.
While plant closures have remained in the spotlight, food makers haven’t completely turned away from expansion. Companies such as Chobani and Danone have been expanding or building new facilities to meet growing product demand.
Ferrara has also expanded this year, announcing in April that it planned to spend $675 million to build a new manufacturing site in South Carolina to support a “high level” of consumer demand for candies such as Nerds Gummy Clusters.
