Dive Brief:
- J&J Snack Foods is initiating a business transformation with an initial focus on consolidating its manufacturing network, according to its Q4 2025 earnings call last month.
- As part of the plan, the company said it is closing three production facilities by the end of Q1 2026, including sites in Atlanta; Holly Ridge, North Carolina; and Colton, California.
- "The closures reflect the next logical step in the evolution of our manufacturing footprint and are enabled by the investments we have made in our plants to modernize and expand capacity for core products and to build out our regional distribution centers,” President and CEO Daniel Fachner said on the call.
Dive Insight:
J&J’s transformation plan, labeled Project Apollo, is forecasted to deliver at least $20 million in annualized operating income once all initiatives are implemented in 2026, according to Fachner.
The plant closures will drive approximately $15 million of those savings once they are completed in Q2 2026. Operations from the plants will either be consolidated or discontinued as part of an ongoing portfolio optimization effort, Fachner said.
The Dippin’ Dots maker is restructuring its production footprint in tandem with improvements to its distribution network.
The company reduced distribution expenses by 8.3% year over year in Q4 2025, primarily driven by fewer internal transfers and better truck utilization, CFO Shawn Munsell said.
J&J Snack Foods has been leaning into a regional distribution center model over the last two years in an attempt to simplify its warehouse network and drive supply chain improvements. Project Apollo will continue the company’s distribution system revamp, with that part of the project expected to yield $3 million in annualized savings, per Fachner.
“It's the play that we called a couple of years ago as we continue to build efficiencies inside our system and put in some new plants or new lines within our plants and then rebuild[ing] the distribution system now allows us to be able to go back and optimize, and we're really excited about that work that's being done,” Fachner said of the overall transformation plan.
