Keurig Dr Pepper has announced its plans to shut down a K-Cup manufacturing plant located in Windsor, Virginia by the end of 2024, affecting 379 employees. The closure comes as the company aims to rebalance its production capacity geographically and operate more efficiently.
The news of the closure was confirmed through a WARN notice filed by the beverage giant on July 16. The Windsor plant, spanning 330,000 square feet, has been operational since 2012.
According to a spokesperson from Keurig Dr Pepper, employees impacted by the closure will receive support in the form of severance packages and career planning assistance.
This move is part of the company’s broader strategy to optimize its coffee production network. Last October, Keurig Dr Pepper announced plans to invest $100 million in its coffee roasting and manufacturing facility in Spartanburg County, South Carolina, with the goal of creating 250 new jobs by 2027.
Earlier this year, the company also revealed its decision to close a manufacturing plant in Vermont and consolidate operations to another location within the state.
Keurig Dr Pepper continues to expand its reach, with the company reporting nearly 40 million household users of its coffee brewing system. Executives are optimistic about adding more households to their platform, considering that a third of all coffeemakers sold in the U.S. are Keurig or Keurig-compatible models.
Similar to Keurig Dr Pepper, other food and beverage manufacturers are also making adjustments to their production networks. PepsiCo recently announced the closure of a Quaker Oats plant in Illinois, resulting in 510 job losses. Campbell Soup has also made changes by closing one plant and downsizing another while investing in newer, more efficient facilities to enhance its supply chain competitiveness.