Amy's Kitchen, an organic food company founded in California, is closing its original manufacturing plant in Santa Rosa and moving operations to facilities in Medford, Oregon, and Pocatello, Idaho. The phased closure will impact approximately 260 jobs, with layoffs beginning late this year and continuing through next summer.
The company attributes the decision to changing consumer demand and rising costs associated with labor, ingredients, energy, and logistics. These pressures have previously affected its California operations, including the closure of its San Jose factory in 2022, which reportedly lost $1 million per month.
Under the restructuring, the Pocatello facility will focus on entrées, while the Medford plant will specialize in pizzas, soups, and burritos. Amy's Kitchen stated that this realignment aims to streamline its manufacturing network and position the brand for future growth. The company plans to provide affected employees with separation packages, job placement assistance, and counseling services.
Founded in Petaluma, California, in 1987 by Andy and Rachel Berliner, Amy's Kitchen built its reputation on organic vegetarian convenience foods. While the manufacturing plant is closing, the company's corporate headquarters will remain in Petaluma. The Santa Rosa facility currently accounts for a small portion of the company's overall output.
Retail sales for Amy's Kitchen products are approaching $1 billion annually, with the brand holding leading positions in several categories, including frozen entrées, frozen handheld foods, frozen pizza, and shelf-stable soup.
This move follows a period of operational changes for Amy's, including the 2022 closure of its San Jose production facility, which eliminated 331 jobs. The company also recently closed its last Amy's Drive Thru restaurant and abandoned plans for a new manufacturing plant in New York.
The closure of the Santa Rosa plant aligns with a broader trend of large-scale food production facing challenges in regions like Sonoma County due to increasing operational costs. However, Amy's Kitchen emphasizes that the current restructuring is focused on simplifying its operations and preparing for future expansion.