After recall, Quaker decides to close facility

CHICAGO — The Quaker Oats Co., a business of PepsiCo, Inc., is permanently closing its facility in Danville, Ill., following a recall in December 2023 that led Quaker to cease production at the facility.

“After a detailed review, we determined that meeting our future manufacturing needs would require an extended closure for enhancements and modernization,” Chicago-based Quaker Oats said. “In order to continue the timely delivery of Quaker products trusted by consumers since 1877, we determined production would need to permanently shift to other facilities.

“We do not make this decision lightly and recognize the impact it will have on our employees, their families and the Danville community. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.”

Quaker in the United States has other baking plants in Cedar Rapids, Iowa, and Columbia, Mo., as well as one in Peterborough, Ont.

Quaker initially voluntarily recalled select granola bars and cereals in the United States, Puerto Rico, Guam and Salpan, citing potential contamination with Salmonella. Quaker in January updated the list to include cereal, bars and snacks.

The Danville plant, in operation for 55 years, will close effective June 8, according to a Facebook post from the City of Danville. While the facility has ceased production, Quaker will continue to pay employees through June 8.

“We are currently updating a list of local job opportunities and discussing training opportunities that will help them transition into other roles in the community,” the City of Danville said. “Most other businesses in town need additional skilled workers, and Quaker employees are known for their hard work and commitment to excellence.”

Organic revenue for Quaker Foods North America in the 2023 fiscal year declined 2%, primarily driven by a decrease in organic volume and a negative impact of two percentage points due to a 53rd reporting week in the previous year. The organic volume decline and effective net pricing included a negative impact of two percentage points of the product returns from the Quaker recall.