Seven Kraft Facilities to Close

Food company Kraft Heinz corporation will close seven facilities across the US and Canada in the coming months. The downsizing of the corporation will result in severing ties with dairy farmers, dairy transporters, and others that support the production of Kraft products in affected locales. The announcement first came in November 2015 and is now being implemented, as evidenced by a 90-day termination notice workers at the facilities received last week. In 2015, the company also announced it would close its 70-year-old meat processing plant in Iowa. However, the state awarded the company a $4.7 million incentive package—which includes a $1 million tax break—to keep its business in Iowa. “It’s bizarre,” Iowa State University economist David Swensen said. “The idea of providing public assistance for a company that has billions of dollars of annual sales cannot make sense to anybody.” Recent trend reports indicate that consumers are becoming more discerning about their food choices and the ethical practices of the companies they choose to support. Several food companies including Danone, Tyson, and meat company Maple Leaf Foods have made sizeable investments in plant-based brands, while companies such as Kraft—and similarly, McDonald’s which announced it would close 700 locations in coming years—struggle to stay afloat without restructuring.