The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Saputo has announced plans to make sweeping changes to its US operations, permanently closing three facilities, while building a new packaging site and expanding its string cheese operations. The dairy giant is spending CAD $240 million (approx. $179 million) on a new cut-and-wrap facility in Franklin, Wisconsin, which is expected to create 600 jobs. The plant is slated to be fully operational by the third quarter of fiscal 2025. Once operational, Saputo will transfer existing packaging operations from other manufacturing sites to its new Franklin facility. As a result, the company will permanently shut sites in Big Stone, South Dakota, and Green Bay, Wisconsin. In addition, the company is investing CAD $75 million (approx. $55.9 million) to convert its cut-and-wrap facility in Tulare, California, into a string cheese packaging facility. Saputo said that the investment will support its growth ambitions and sustain its leadership position in the string cheese product category. The company says the facility will be fully operational by the third quarter of fiscal 2025. Consequently, Saputo will permanently close its South Gate, California, facility in the fourth quarter of 2025. The closure of the three facilities will impact around 720 employees who will each be given the option to relocate to other Saputo facilities. Otherwise, they will be provided with "severance and outplacement support," said the company. Lino A Saputo, president and CEO, said: “Continuing to lay the groundwork for future growth in the US, these initiatives aim to solidify our ability to meet current and future customer demand and further improve our cost structure". He continued: "Strategic investments, a streamlined footprint and optimised facilities will set the stage for notable improvements in our operational performance as we consolidate activities into world-class facilities. Also designed to increase production capabilities in some of our higher-margin value-added product categories, these initiatives will fuel our aspirations to further enhance our value proposition as a high-quality, low-cost processor in the USA.”