JM Smucker to close Hostess Brands plant
The focus is on stabilizing the Hostess brand and positioning it for long-term growth.
USA – JM Smucker is planning to close its manufacturing facility in Indianapolis, Indiana, as part of its ongoing effort to optimize its sweet-baked snacks division.
This facility produces items under the Hostess brand, which JM Smucker acquired in 2023 for US$5.6 billion.
According to a press release from the company, the Indianapolis plant will shut down, and a sale of the site is expected by early 2026. Production will be transferred to other factories, although specific locations have not been disclosed.
Judd Freitag, Senior Vice President and General Manager of the Pet and Sweet-Baked Snacks business unit, explained that this decision aligns with the company’s strategy to streamline its manufacturing network, reduce costs, and simplify operations.
JM Smucker, which also owns notable brands such as Folgers, Bustelo, and Jif, did not share how many employees would be affected by the closure.
However, Freitag emphasized, “Any decision that impacts our employees is made only after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition.”
The company has encountered challenges with the Hostess brand, having reported a third-quarter loss in March due to goodwill impairment charges exceeding US$1 billion.
JM Smucker recorded a net loss of US$662.3 million for the three months ending January 31, a sharp decline compared to a profit of US$120.4 million reported a year earlier.
In August, JM Smucker also announced plans to lay off 79 workers at the Lenexa, Kansas offices for Hostess.
Furthermore, the company has been divesting other assets. After the Lenexa layoffs, JM Smucker agreed to sell its cookie brand to Second Nature Brands in an all-cash deal worth US$305 million.
This transaction included the Voortman Bakery brand, its leased manufacturing facility in Ontario, and approximately 300 employees.
JM Smucker acquired Voortman when it purchased Hostess Brands, which had acquired Voortman in 2019 for US$320 million.
Additionally, in February, JM Smucker sold its Cloverhill and Big Texas brands to JTM Foods for around US$40 million, including Cloverhill pastries, Big Texas cinnamon rolls, private-label products, and a manufacturing facility located in Chicago.
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