Nestlé USA, Glendale, Calif., announced plans to consolidate production of its HOT POCKETS brand sandwiches from its Chatsworth, Calif., facility to the Mt. Sterling, Ky., plant. Approximately 360 employees will be impacted by this decision.
The Mt. Sterling facility opened in1993, then doubled in size in 1996 with room for further expansion, if needed. Nestlé will invest $13 million in the Mt. Sterling facility, and will hire 150 new employees, as the operation converts to 24/7.
The decision to consolidate production to one location came after exhaustive analysis, according to Martial Genthon, chief technical officer.
“Unlike other manufacturing facilities we operate in California, the Chatsworth facility presents some challenges to our business needs. While the decision to stop manufacturing HOT POCKETS at our California facility is a tough one because it affects 360 of our Nestlé employees, it is the right decision for our business. Consolidating to one location will allow us to further improve our level of performance. We anticipate better facility utilization, optimized production schedules and streamlined delivery—both from our vendors and to our customers. As we expand employment in Kentucky, we appreciate the continuing assistance from the Commonwealth of Kentucky and Governor Steve Beshear and from leadership in Montgomery County and its county seat, the city of Mt. Sterling.”
Nestlé acquired the HOT POCKETS and LEAN POCKETS brands in 2002, and moved brand management from Colorado to Solon, Ohio, in 2012. Last year, Nestlé made improvements to the brand’s recipes with such additions as Angus beef, Hickory ham, white meat chicken, signature pepperoni, real cheese and new seasoned crusts.
