Blue Diamond Growers, the world’s largest almond cooperative, has announced the closure of its historic 53-acre processing facility in Sacramento, California. The plant, operational since 1914, will cease operations over the next two years, impacting approximately 600 of the cooperative’s 1,400 employees. Manufacturing will be consolidated at Blue Diamond’s facilities in Turlock and Salida in the Central Valley
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Storied Legacy Meets Modern Challenges
The Sacramento plant, located at
16th and C streets, is one of the city's last operating canneries from the
early 1900s. Its closure marks the end of an era for a facility that helped
establish Sacramento as the world’s almond capital. Despite its historical
significance, the plant's aging infrastructure and high operational costs led
to inefficiencies, prompting the decision to relocate operations.
Economic
Pressures and Strategic Shifts
The closure reflects broader
economic challenges facing the almond industry. Blue Diamond reported a 17%
decline in sales, with revenues dropping from $1.6 billion to $1.33 billion in
the 2022-23 fiscal year. Factors contributing to this downturn include an
oversupply of almonds, inflationary pressures, and shifts in consumer shopping
patterns.
In response, Blue Diamond is
implementing an aggressive strategic growth plan focusing on expanding into the
foodservice channel and selected international markets, strengthening its
value-added business, doubling down on product innovation, and driving
operational efficiencies.
Impact
on Employees and Community
Approximately 600 employees will be
affected by the closure. The company plans to offer severance and outplacement
support, with some employees being given the opportunity to transfer to other
locations.
The future of the historic plant
site remains uncertain. Local leaders have suggested potential redevelopment
for residential or technological use, following a trend of transforming former
industrial sites in Sacramento into residential and commercial properties.
Looking
Ahead
While the closure of the Sacramento
plant marks a significant change for Blue Diamond Growers, the cooperative
remains committed to its mission of supporting almond growers and adapting to
the evolving market landscape. The consolidation of operations aims to
streamline manufacturing processes and position the company for future growth
in an increasingly competitive industry.
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