A well-known organic-food company is stepping back from its California operations, deciding to close its original factory in Santa Rosa. This move will affect around 260 jobs as part of a significant restructuring plan.
Amy’s Kitchen, a family-owned business with annual retail sales near $1 billion, will transition production from Santa Rosa to manufacturing sites in Medford, Oregon, and Pocatello, Idaho. The plan involves a phased shutdown of the Santa Rosa facility.
CEO Paul Schiefer expressed his reluctance in a statement, saying, “This is hard, and it should be hard. We looked at every alternative before landing here. We have a loyal workforce in Santa Rosa, and we’re incredibly grateful for everything they’ve contributed.”
The company aims to refine its manufacturing strategy, ensuring that each facility is specialized in the product categories where they excel the most.
Employees impacted by the closure will receive packages to aid their transition, including job placement assistance and counseling services, as per the company’s announcement.
This decision is particularly notable, given Amy’s Kitchen’s strong presence in the organic market. Consumers spend about $1 billion yearly on its offerings, which generates roughly $600 million in sales for the company. In fact, market analysis by SPINS shows that Amy’s Kitchen ranks first in many organic categories.
The brand reportedly holds an impressive 89.09% share of the Organic Frozen Pizza market and a 73.80% share for Organic Frozen Burritos and Pockets. It also leads in Organic Frozen Entrees and Organic Ready-to-Eat Soups according to SPINS.
However, the company is now significantly reducing its production activities in California. The corporate headquarters will remain located in downtown Petaluma, where the business was established in 1987, but the Santa Rosa plant’s closure is imminent—layoffs are expected to start later this year, with another round set for next summer.
Additionally, the cuts extend into Idaho, with plans to permanently lay off numerous workers at the Pocatello canning plant by the year’s end. A WARN notice filed with the Idaho Department of Labor indicates that these layoffs are effective December 18 and include various positions, although not all details were fully legible in the records reviewed.
