Everyone knows JM Smucker, aka Smuckers, for its jelly and peanut butter spreads, but over the years, the company has also become a leader in the snack aisle.Ā
The Ohio-based food giant has added a lineup of household brands to its shelves, including Milk-Bone (for pets), Folgers coffee, Jif peanut butter, and most recently, Hostess snack cakes.
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You know, the same Twinkies, HoHos, and Ding Dongs that filled generations of lunchboxes and satisfied late-night cravings?
In 2023, Smucker gobbled up Hostess Brands in a $5.6 billion deal, betting big on the appeal of sweet snacks, despite the growing popularity of healthier and less sugary foods in the U.S.
But even amid that big investment, the company has been working to consolidate operations, and that means making some difficult choices.Ā
Hostess Cupcakes have been a beloved snack food for generations.Ā
Image source: Shutterstock
JM Smucker to close Hostess plant in Indianapolis
Smucker announced it will close its Hostess snack cake plant in Indianapolis in 2026, ending almost 70 years of operations there. The plant has produced the most popular Hostess treats for decades.Ā
Smucker did not explain why it selected the Indianapolis site for closure, but it’s an older facility that may require significant investment to update.Ā
“This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the HostessĀ business and positioning it for long-term growth,”Ā said Senior Vice President Judd Freitag in a statement.Ā
Related: Beloved Mexican restaurant closing iconic location after 63 years
Smucker did not disclose how many employees will be affected by the closure, but around 260 people work in the Indianapolis location.
The company says it plans to shift production to other facilities in its network and willĀ sell the Indianapolis facility by the end of calendar year 2026.
JM Smucker plant closure is the latest example of industry-wide move to cut costs
There is a broader trend in the food and beverage industry of identifying ways to trim costs. Inflation is squeezing consumer budgets, and they areĀ cutting back on discretionary spending, which includes everything from travel and restaurant meals to non-staple groceries like sweet snacks.Ā
Some companies are choosing to close existing locations instead of retrofitting them. So far this year, PepsiCo, Conagra Brands, Post Holdings, and Brown-Forman have all announced plant closures or restructurings. In each case, the companies cited rising costs, the need for operational simplicity, and a shift toward long-term sustainability.
Labor costs, ingredient price volatility, and shifting consumer habits are also contributing to the closure trend.Ā
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Shoppers areĀ more frequently visiting discount retailers and buying more private-label brands such as those from Costco and Trader Joe’s. These habits pressure large food manufacturers to rethink how they produce, ship, and market their products.
Smucker is committed to stabilizing and growing its snacks business, and the Indianapolis closure may be one way to simplify logistics so the brand can remain profitable, even as consumer spending tightens.Ā
