Ferrara to close Chicago plant next April, affecting 154 workers

By Daniel Okafor

Ferrara will close its 31st Street manufacturing plant in Chicago next April, affecting an estimated 154 workers, according to a WARN notice filed in Illinois.

Ferrara, the maker of Nerds, said the closure comes amid tough market conditions and a rethink of its long-term innovation roadmap. The company said the closure will move production of Funables Fruity Snacks and Stretch Island Fruit Strips to other facilities. Ferrara said neither product will be discontinued.

A Chicago plant with a long local history

Ferrara was founded in Chicago and has maintained a presence in the city for nearly 120 years, which the company cited when it called the closure “especially difficult.” In 2024, Ferrara closed a Jelly Belly plant in Chicago. It still maintains the Forest Park site, which produces candies such as Lemonheads.

Ferrara retains its global headquarters in Chicago. In an email to Food Dive, Ferrara said: “We remain committed to Chicago, home to our global headquarters. This closure is not expected to impact Ferrara brands, product availability, or service to our customers.”

Affected workers can apply across Ferrara

The WARN notice put the estimated job impact at 154 workers, while Ferrara said affected employees can apply for open positions across the company’s operations. The closure changes the production location for two snack lines. It does not remove either line from the portfolio.

The move fits a broader push to streamline factories

Food Dive reported that food and beverage companies face a slowdown in shopper spending and changing consumer buying habits, which are pushing more businesses to lower costs by streamlining their manufacturing footprints.

PepsiCo, Nestlé, Diageo and Tyson Foods announced plant closures this year, according to Food Dive. Plant closures have not ended food manufacturing investment. Chobani and Danone have expanded or built new facilities to meet growing product demand, Food Dive reported.

Ferrara is also preparing new capacity

In April, Ferrara announced plans to spend $675 million on a new South Carolina manufacturing site that will support a high level of consumer demand for candies such as Nerds Gummy Clusters. The two projects point to different capacity moves: existing production transfers out of Chicago, while South Carolina adds capacity for demand. Ferrara is not simply retreating from candy manufacturing.

Ferrara is moving Stretch Island production for the second time since it bought the brand in 2019. The company shifted production from Georgia to the Chicago plant in 2020. The 31st Street closure will move it again.

What does the closure change for candy buyers?

For candy buyers, the immediate change is the manufacturing location for two snack lines, not a withdrawal of either product from the portfolio. Ferrara says product availability and customer service should remain unaffected. The test comes after next April’s shutdown, when Ferrara must move output without creating supply gaps.

Retailers and distributors can plan around a factory consolidation rather than a product discontinuation. Ferrara’s $675 million South Carolina site plan puts one plant closure alongside new factory investment. The production transfers will show whether the closure affects product availability in practice.