EARTH CITY, MO (KTVI) – Food manufacturer Kellogg Co. announced its intention Tuesday to close its Earth City distribution center as part of a nationwide cost-cutting measure.
"We will stop our direct store delivery network in the second quarter," said company spokesman Kris Charles.
The Earth City location is one of nearly 40 distribution facilities in the United States that support its snack foods business, which includes Pringles and Cheez-It.
They will now ship their products directly to retailers like Schnucks, Dierbergs, and Shop ‘n Save instead of using their own center.
"The new model will reduce complexity and cost structure while driving growth for the company and retail partners," Charles said.
Approximately 30 employees will lose their jobs at the Earth City facility, but there is some hope.
“We've been actively engaged in conversations with some of our biggest retailers and they are expressing a strong interest in hiring these employees for high-demand roles once the transition is complete,” Charles said.
Their warehouse distribution is already utilized by 75 percent of Kellogg’s U.S. sales. Moving completely to a warehouse distribution system offers a significant opportunity to accelerate growth.