The Supply Side briefs: Kellogg shutters plant, Krispy Kreme iced coffee at Walmart

by The City Wire staff ([email protected]) 104 views 

• Kellogg announces plant closure, shift reductions
Michigan-based Kellogg Co. said this week it plans to shutter a Charlotte, N.C., snack factory as part of a plan to cut costs. The Kellogg plant will close by the end of 2014 eliminating about 195 jobs, according to the release. The plant makes Famous Amos, Austin Sandwich Creme and Iced Animal cookies.

“As with any project that impacts people, these are difficult decisions,” CEO John Bryant said in a statement. “We are very mindful of the impact these changes will have – particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”

Kellogg also said that it will close two production lines at its snack factory in Cincinnati. These closures are part of the company’s “Project K,” an initiative meant to save money and increase efficiency. Project K is expected to cost between $1.2 billion and $1.4 billion, the company told investors recently. The program is expected to save at least $425 million annually by 2018.

The food company reported lackluster results in its most recent quarter, with sales flat at $3.7 billion and profits up less than 1% at $326 million. Sales in North America overall fell 1.3%, at $2.4 billion, and U.S. snack sales fell 2.5%, Kellogg said.

Kellogg is a supplier to Wal-Mart Stores Inc. and operates a large sales office Rogers.

• Krispy Kreme iced coffee on the shelf at 900 Walmarts
Krispy Kreme Doughnuts Inc. seeking to increase its beverage share said this week that ready-to-drink iced coffees are now being sold in more than 900 Walmart store locations across the nation.


“Making our premium quality coffee available to consumers through the convenience of ready-to-drink is part of our continuing efforts to build awareness and equity in our coffee program,” said Brad Wall, senior vice president for supply chain and off-premise operations.

The iced coffees will be available in 9.5-ounce bottles and priced at $1.98.

“The product will be in all Walmart locations that carry Krispy Kreme products,” said Lafeea Watson, the company’s public relations manager.

In October, the company began its attempt to capture a larger slice of the home-brew consumer business by selling 40-ounce packages of its signature coffee blends at a select number of Sam's Clubs in the Southeast.