Nestle to consolidate Hot Pockets production
August 4, 2014
by Eric Schroeder
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GLENDALE, Calif. — Nestle USA announced it will halt production of its Hot Pockets brand sandwiches at its Chatsworth, Calif., facility. The company has made the sandwiches at the plant since 1988. Approximately 360 employees will be affected by the decision.
Hot Pockets production will be consolidated into a Nestle facility in Mount Sterling, Ky. The Mount Sterling plant opened in 1993, doubled in size in 1996, and its location offers opportunity for further expansion, if needed, Nestle said. The company plans to invest $13 million in the Mount Sterling plant, and will hire 150 new employees there as the operation converts to a 24 hours/7 days per week schedule.
Martial Genthon, chief technical officer for Nestle USA, said the decision to consolidate production to one location came after exhaustive analysis.
“Unlike other manufacturing facilities we operate in California, the Chatsworth facility presents some challenges to our business needs,” Genthon said. “While the decision to stop manufacturing Hot Pockets at our California facility is a tough one because it affects 360 of our Nestle employees, it is the right decision for our business. Consolidating to one location will allow us to further improve our level of performance. We anticipate better facility utilization, optimized production schedules and streamlined delivery — both from our vendors and to our customers.”
Nestle acquired the Hot Pockets and Lean Pockets brands in 2002, and moved brand management from Colorado to Solon, Ohio, in 2012. Last year, Nestle highlighted the improvements it has made to the recipes with such additions as Angus beef, Hickory ham, white meat chicken, signature pepperoni, cheese and new seasoned crusts.