Nestlé has revealed plans to shut down its facility in Diósgyőr, Hungary, by 2026. This decision is primarily influenced by a noticeable decline in the demand for seasonal confectionery items. The factory, which produces hollow chocolate figures for popular brands like Smarties, KitKat, and Milky Bar, currently exports its products to over twenty countries.
Despite its international reach, the Diósgyőr site now accounts for less than 3% of Nestlé Hungary’s total revenue and contributes only 0.4% to its production capacity. The corporation cites a “decline in demand for seasonal confectionery products” as the key factor prompting this closure, indicating potential shifts in consumer preferences related to seasonal sweets.
In response to the impending shutdown, Nestlé has “initiated negotiations on the sale and future operation of the factory,” expressing its intention to find a buyer willing to maintain confectionery production at the site. While the exact number of affected employees has not been disclosed, the company has stressed its commitment to facilitating the transition of “as many colleagues to the new owner as possible.”
Operations at the factory are set to end in December 2026, with additional information expected to be shared in due course. This move aligns with a broader trend among food and beverage companies in Europe, as they reassess their manufacturing strategies in light of evolving consumer tastes, escalating operational expenses, and persistent margin pressures.