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Monday, April 15, 2024

Illinois Facility to be Closed Following December 2023 Recall

In December of 2023, Quaker Oats began recalling various granola products due to potential Salmonella contamination.  This month, the company has decided to permanently close this facility citing extensive facility modernization that would be needed.  “After a detailed review, we determined that meeting our future manufacturing needs would require an extended closure for enhancements and modernization,” Chicago-based Quaker Oats said. “In order to continue the timely delivery of Quaker products trusted by consumers since 1877, we determined production would need to permanently shift to other facilities."

The facility had been in operation for 55 years employing over 500 people.

Baking Business
https://www.bakingbusiness.com/articles/61258-quaker-closing-illinois-facility-after-recall
Quaker closing Illinois facility after recall
04.09.2024By Jeff Gelski

CHICAGO — The Quaker Oats Co., a business of PepsiCo, Inc., is permanently closing its facility in Danville, Ill., following a recall in December 2023 that led Quaker to cease production at the facility.

“After a detailed review, we determined that meeting our future manufacturing needs would require an extended closure for enhancements and modernization,” Chicago-based Quaker Oats said. “In order to continue the timely delivery of Quaker products trusted by consumers since 1877, we determined production would need to permanently shift to other facilities.

“We do not make this decision lightly and recognize the impact it will have on our employees, their families and the Danville community. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.”

Quaker in the United States has other baking plants in Cedar Rapids, Iowa, and Columbia, Mo., as well as one in Peterborough, Ont.

Quaker initially voluntarily recalled select granola bars and cereals in the United States, Puerto Rico, Guam and Salpan, citing potential contamination with Salmonella. Quaker in January updated the list to include cereal, bars and snacks.

The Danville plant, in operation for 55 years, will close effective June 8, according to a Facebook post from the City of Danville. While the facility has ceased production, Quaker will continue to pay employees through June 8.

“We are currently updating a list of local job opportunities and discussing training opportunities that will help them transition into other roles in the community,” the City of Danville said. “Most other businesses in town need additional skilled workers, and Quaker employees are known for their hard work and commitment to excellence.”

Organic revenue for Quaker Foods North America in the 2023 fiscal year declined 2%, primarily driven by a decrease in organic volume and a negative impact of two percentage points due to a 53rd reporting week in the previous year. The organic volume decline and effective net pricing included a negative impact of two percentage points of the product returns from the Quaker recall.

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