Amy’s Kitchen, a prominent player in the food and beverage industry, has announced a pause in its project to develop a food manufacturing and packaging facility in New York State. This decision arises amid significant challenges facing the food and drink business, primarily influenced by shifts in consumer demand for frozen meals and canned soups.
The Goshen facility, located in Orange County, was initially set in motion in 2019. Since 2013, Amy’s Kitchen has poured over $33 million into infrastructure improvements, including upgrades for sewer and water connectivity, enhancements to traffic management, and preparations for construction. Nevertheless, external factors, including the COVID-19 pandemic and rising inflation, have led the company to reassess its production needs for its frozen offerings and canned soups, resulting in the current pause.
In a statement to Just Food, Amy’s Kitchen remarked: “We have made the tough decision to pause our project, and we are still considering our options and timelines. No decision has been made about the project’s future direction.”
This pause in development follows earlier announcements in October that highlighted the company’s intent to lay off over 300 employees in its domestic operations, citing ongoing macro-economic pressures. The company, which was founded in 1987, stated, “Like all food companies, we are navigating industry headwinds, so we made this strategic decision to rebalance our business.”
These developments occur against the backdrop of previous challenges, such as the closure of a facility in San José two years ago. This site was initially intended to capitalize on increased demand for pizza products amid pandemic-driven changes in consumer habits. Amy’s Kitchen attributed the San José closure to supply chain disruptions and unexpected cost rises, which rendered the facility financially unviable.
Earlier this month, in an effort to adapt to evolving food and drink consumer trends, Amy’s Kitchen introduced five new soup varieties inspired by diverse international cuisines and southern American classics.
As the company navigates these industry complexities, staying attuned to food and beverage industry trends will be crucial for its long-term success and resilience.
