Hormel Foods’ Planters nut processing facility in Suffolk, Va., recently came back online after an unspecified “food safety issue” was discovered back in April.
Without going into details, Hormel officials first warned of the “unplanned production interruption” at the plant and its impact on company finances in a second-quarter earnings call on May 30. “We discovered a food safety issue in April which has since been resolved,” James Snee, chairman and president/CEO said in that presentation.
The plant apparently returned to service recently, “as we have taken corrective action within the facility,” Snee said in the third-quarter finance call on Sept. 4. “As production continues to ramp up, we have secured copacker partnerships to help support our snack nuts portfolio to improve fill rates, while we finish upgrades within the Suffolk plant.”
The Planters brand, acquired from Kraft Heinz in 2021,was experiencing share gains this year, much as a result of Hormel innovation. Flavored cashews and Nut Duos specifically were mentioned in presentations. Hormel expected more gains, but growth is being choked off by the manufacturing issue, although contract manufacturers are picking up some of the slack.
In the Sept. 4 call, Snee rued “some of the market impact that we had originally thought was going to be there as we continue to work through the Planters situation. By the end of this fiscal year, we believe the production disruption will be largely resolved and we will be in a much better position to return the business to full service levels.”
