Hammond’s to Close Old Dominion Peanut Facility

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Hammond’s to Close Old Dominion Peanut Facility

By Anna Wolfe - 01/12/2018

After operating in the area for more than a century, Old Dominion Peanut Co. will close its manufacturing facility in Norfolk, Va. 

Gentrification of the area played a role in the decision. The neighborhood is transitioning from manufacturing and warehousing to retail and upscale residential apartments. Plus there are higher operating costs and the lack of efficiencies operating out of multiple buildings.

“Business decisions that directly impact our employees are extremely difficult,” said Andrew Schuman, president and CEO of Hammond’s Brands, owner of Old Dominion Peanut.  “Old Dominion has operated in Norfolk for over 100 years, and we have employees that have been with us for nearly 40 years. The plant closure does not reflect the end of the Old Dominion Peanut Co., rather it marks the beginning of the next chapter of our business operations for long-term health.”

The closing is expected to be completed by early summer.  Hammond’s Brands will relocate part of the ODP operations to its headquarters in Denver and certain production of its products will be transferred to a third party under a long-term co-manufacturing agreement. 

“This is a company restructuring initiative that will allow the company to intensify product scope and drive future profitability to our core businesses. Our response to this unfortunate solution is that we must combine a commitment to long-term investments in innovation and manufacturing. We believe this closure is crucial to our ability to increase efficiency and reduce the company’s cost structure. Today’s news will allow us to accelerate our growth strategy and drive long-term change, all to further Hammond’s success,” said Schuman.

The Norfolk facility currently employs approximately 70 wage and salaried employees and produces products such as peanut brittles, nut candies, and chocolate covered nuts. 

Hammond’s is enlisting the aid of the Virginia Employment Commission and communities to allow workers the maximum access to public services and ensure a seamless transition  for employees.