Nestlé USA, Glendale, Calif., announced plans to relocate its frozen pizza division from its present location in Northbrook, Ill., to Solon, Ohio. The pizza division includes DiGiorno, California Pizza Kitchen, Tombstone and Jack’s brands. The move will be completed by mid-2014.
Nestlé executive John Carmichael will return to the United States from his assignment as zone Americas deputy in Vevey, Switzerland, to become president of Nestlé Pizza, effective Jan. 1, 2014. Paul Bakus, the current president, was named president of corporate affairs for Nestlé in the market, effective Jan. 1, 2014.
"By moving Nestlé Pizza to Ohio, we'll bring together terrific brands and powerful businesses that will create many more talent development opportunities for our Nestlé employees," says Paul Grimwood, chairman and CEO. "The decision also allows us to better manage our costs and to improve our efficiencies by operating as one Nestlé with our retailers."
The relocated pizza business will also benefit from close proximity to the expanding R&D facilities in Solon, Ohio. In June, Nestlé announced its $53 million investment to build a Product Technology Center dedicated to frozen and chilled foods research. The new facility is now under construction and will be operational in early 2015.
Employees in Northbrook were notified of the decision to move the business last week. The majority will be offered the opportunity to relocate to Ohio.
The pizza division also operates two pizza production bakeries in Little Chute and Medford, Wis. These facilities and their employees will not be relocating to Ohio.