General Mills to Close or Sell Five Manufacturing Plants in the US, Brazil and China

General Mills said it would close, sell or scale back five manufacturing plants, which represents the biggest cut to operations this year as it continues to adapt to changing consumer tastes.The restructuring plan affects its global supply chain, impacting its US, Brazil and China operations, putting 1,400 jobs at stake. 

Vineland, New Jersey

General Mills has made a tentative decision to close its manufacturing facility in Vineland, New Jersey, and transfer production to other US facilities to eliminate excess soup capacity in its North America supply chain. The decision is subject to negotiation with union officials. If the decision becomes final, the closure could affect approximately 370 employees. General Mills expects the action to be completed by the first quarter of the 2018 fiscal year. The Vineland facility has been operated by General Mills since 2001. 

Martel, Ohio

General Mills has reached a tentative agreement to sell its facility in Martel, Ohio, to Mennel Milling Company, pending negotiations with union officials. If the decision becomes final, we expect the sale to close by the second quarter of the 2017 fiscal year. At that time, Mennel would act as a supplier to General Mills. A closure would affect approximately 180 employees. The Martel plant manufactures dry baking mix products and has been operated by General Mills since 2001. 

Marília and São Bernardo do Campo, Brazil

General Mills has made a decision to close the Marília manufacturing facility and distribution center and transfer production out of the São Bernardo do Campo facility to other General Mills facilities in Brazil. General Mills is negotiating an exit package for the approximately 420 impacted employees with union officials from both locations. The Marília closure and the transfer of production out of São Bernardo do Campo will be completed in the first quarter of the 2017 fiscal year. Both the Marília and São Bernardo do Campo facilities have been operated by General Mills since 2012. 

Nanjing, China

General Mills has decided to exit the fruit snacks business in China. The company will stop producing Trix products at its facility in Nanjing, China, during the first quarter of the 2017 fiscal year. General Mills will continue to make Bugles snacks in Nanjing. The decision will result in the loss of approximately 300 positions in China. General Mills has manufacturedBugles in China since 1999 and Trix since 2005.

Alongside this movement, General Mills has been adapting its vast portfolio of products in line with consumer demand for less gluten and sugar, as well as more organic foods. When executives publicly disclosed high-growth and low-growth products for the first time, investors were encouraged to look at those areas where future cost cuts could be made.

E.coli alert: more products are recalled

This strategic decision is not the only concern for the directors of General Mills. The company had to recall more products due to four new confirmed E.coli illnesses. General Mills is adding additional flour production dates to the previously announced US retail flour recall, which was originally announced on May 31, 2016. The illnesses reported to health officials continue to be connected to consumers who report that they ate or handled uncooked dough or ate uncooked batter made with raw flour. No illnesses have been connected with flour, which was properly baked, cooked or handled.
The addition of new flour production dates is the result of proactive flour testing being conducted by General Mills, as well as new information from health officials who are using new whole genome sequencing techniques to trace illnesses. Several subtypes of E. coli have been detected in a small number of General Mills flour samples, with some of them linked to new patient illnesses, which fall outside of the previously recalled dates.
Previously announced recalled flour production dates range from November 4, 2015, through December 4, 2015. The expansion includes select production dates through February 10, 2016.