Specialty Foods Maker Lancaster Closes SoCal Garlic Bread Factory

The brand of frozen garlic bread made there has been discontinued for its "small size and low profitability."

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Lancaster Colony Corporation

Specialty foods maker Lancaster Colony Corp., which supplies products to food retail and foodservice customers, has closed its frozen garlic bread factory in the east Los Angeles suburb of Baldwin Park, the company announced Feb. 3.

13The Westerville, OH-based company — which market its products through brands that include Marzetti, New York Brand Bakery, Sister Schubert's and Flatout — shared the news in an earnings report for its October-December second quarter financial period. 

Lancaster said production at the Baldwin Park plant ceased in January, with the Mama Bella brand of frozen garlic bread discontinued based on its "small size and low profitability" and that the move supports the company's "ongoing efforts to better optimize our manufacturing network."

The decision to close the factory resulted in a $1 million restructuring and impairment charge on the company.

Lancaster — whose retail customers include Chick-fil-A and Buffalo Wild Wings — didn't mention how many employees were impacted by the closure.

The company reported Q2 sales of $248 million improved 14.2% year-over-year, while gross profit of $96.6 million fell 9.4%, operating profit of $45.3 million sunk 22.7% and net profit of $34.4 million fell 23.0%.

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