USA—The mayor of Danville, IL, Ricky Williams Jr., has confirmed that PepsiCo is set to shut down a Quaker Oats plant in the area on June 8th, which was temporarily closed during a recall of granola products in December 2023.
In a Facebook post, Mayor Williams disclosed that the production at the facility, which included over 60 products recalled in December 2023 and January 2024 due to Salmonella contamination, will cease.
The recall of Quaker Oats products commenced on December 15, 2023, implicating over 40 items, later expanded on January 12, 2024, with the withdrawal of an additional two dozen products.
This permanent closure decision was arrived at after PepsiCo thorough review, which determined that for the company to meet future manufacturing needs, it requires an extended closure for enhancements and modernization.
“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.” the company statement read.
PepsiCo will redirect the production of products manufactured at the plant to other facilities.
The plant’s closure means the end to not only a 65-year legacy but also the loss of 510 jobs among local residents, as per the company statement.
Originally established in 1969 by Chicago-based Quaker Oats, a subsidiary of PepsiCo since 2001, the Danville plant specialized in the manufacturing of Quaker Oats granola bars, alongside cereal and pancake mix production.
This series of setbacks were evident in the company’s financial numbers – in its 2023 financial report, PepsiCo noted a 5% drop in sales volumes for Quaker Foods North America compared to the previous year, with division revenue declining by 2% to $3.1 billion.
The company’s operating profit also saw a significant 19% decrease, attributed to the impact of the recall.
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