Food and Beverage Business

Flagship Food Group to close down its tortilla plant in the US

Flagship Food Group to close down its tortilla plant in the US Bakery and Cereal Food and Beverage Business

Flagship Food Group has announced the closure of its production site for the La Tortilla Factory brand in Santa Rosa, California. The 75,000-square-foot facility is expected to shut its doors indefinitely on 31 March. Production is being relocated to Flagship’s existing operations in Moundridge, Kansas, and other California locations the company invests in. The Denver-based food group cited the “lack of ownership of the Santa Rosa facility and prohibitive land acquisition costs in the area” as reasons for the closure. Additionally, Flagship confirmed that part of its decision to let the site go is that at its Kansas plant, it “owns sufficient land with opportunity for future expansion on adjacent open land”.

Commenting on this decision, Flagship stated, “Relocating will safeguard [La Tortilla Factory’s] ability to make the best tortillas at fair prices, while expanding its capacity to reach new customers and serve our existing customers.” The company has also emphasized its commitment to create jobs in California through strategic manufacturing operations and the broad distribution and sales offices located in both Northern and Southern California. La Tortilla Factory manufactures a range of better-for-you Mexican foods such as low-carb, grain-free, gluten-free, non-GMO and added-protein tortillas. The company supplies supermarkets across the US including Walmart, Target, Whole Foods, Sprouts, Kroger, and smaller retailers.

Flagship will offer job search assistance and communicate with other local companies to the 135 employees affected by the closure. Furthermore, the company affirmed that “some positions” will be kept if they can function remotely and that the workers “have all been offered a severance package based on length of service”.

In addition to the news of the closure, Flagship announced it has started a “large-scale” expansion of its warehousing and shipping operations space at its Kansas plant to further boost production. Construction is expected to finish in April.

Flagship became a majority stakeholder in La Tortilla in 2021, with the Tamayo family remaining investment partners in the wraps business. The company manages five plants and warehouses across Kansas, California, and New Mexico. It also owns sales, support, and R&D locations in Minnesota, Colorado, California, and Idaho. Last November, the group appointed former Kraft Heinz executive Adam Butler as its new CEO.

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