Utz Brands, a popular chip and pretzel maker, recently announced its plans to close its manufacturing facility in Grand Rapids, Michigan. This decision comes as part of the company’s efforts to cut costs and optimize its supply chain footprint. The manufacturing operations at the facility will come to an end on Jan. 30, while warehouse operations will cease on May 26. Approximately 75 employees will be affected by this closure.
After the closure of the Michigan plant, Utz Brands will be left with seven plants in operation. Despite the closure, products that were previously manufactured in Grand Rapids will continue to be produced at other Utz facilities. The company is currently in the process of consolidating its manufacturing operations to improve efficiency and automation capabilities.
According to Utz CEO Howard Friedman, the decision to close the Michigan plant is a strategic move to streamline operations and strengthen the company’s supply chain for long-term success. This consolidation of the supply network will allow Utz to allocate more volume to larger and more efficient facilities, generating cost savings and creating an optimized footprint to support geographic expansion.
In recent years, Utz Brands has sold or shuttered several plants as part of a supply chain overhaul aimed at saving over $100 million. Workers affected by the closure of the Michigan facility are encouraged to apply for opportunities at other Utz facilities.
Despite the closure of the Grand Rapids plant, Utz Brands reported a 2.9% increase in second-quarter net sales, reaching $366.7 million. The company has forecasted organic net sales growth of at least 2.5% for the 2025 fiscal year. As food and beverage manufacturers continue to navigate challenges such as inflation and margin pressures, many companies, including PepsiCo, Conagra Brands, and Post Holdings, have announced closures of manufacturing facilities in recent months.
Overall, Utz Brands’ decision to close the Michigan plant reflects its commitment to operational excellence and ongoing transformation. By consolidating its manufacturing operations and optimizing its supply chain footprint, the company aims to enhance efficiency, reduce costs, and position itself for long-term success in the competitive snack industry.
