Kellogg to close distribution centers

Staff report

WARREN

Kellogg Co. has announced that will close all of its distribution centers, including one in Warren, as it switches its delivery model.

Kellogg will begin to exit its Direct Store Delivery network in the second quarter, transitioning the DSD-distributed portion of the company’s U.S. snacks business to the warehouse model already used by Pringles and the rest of its North American business. The company says the new model will reduce “complexity and cost structure while driving growth and profitability for the company and its retail partners.”

The transition from the DSD network will be complete in the fourth quarter of 2017. It will encompass a transfer of inventory from Kellogg’s distribution centers to retailers’ warehouses and the closing of its distribution centers.

The company is providing severance and benefits, as well as offering retention packages for impacted workers.

Kellogg’s Warren distribution center is located at 655 N River Road NW.

“While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees,” said Kris Charles, a company spokesperson, in a statement to The Vindicator.

On average, Kellogg distribution centers employ about 30 full-time workers. Kellogg didn’t specify how many distribution centers it has.

“As the distribution shifts from our network to our retailers’ networks, so too will the work,” Charles said. “We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete.”