Keurig Dr Pepper has announced the closure of its coffee production facility in Virginia, impacting 379 employees. The decision, disclosed through a WARN notice on July 16, aligns with the company’s strategy to expand its operations in South Carolina.
The Virginia plant, spanning 330,000 square feet and operational since 2012, will cease operations as part of a broader effort to streamline production. This move supports the increased output at Keurig Dr Pepper’s Spartanburg, South Carolina site, which is set to benefit from a $100 million investment. This investment aims to generate 250 new jobs by 2027, adding to the $380 million previously committed and the 155 jobs already created there.
A Keurig Dr Pepper spokesperson stated, “The timing of this closure aligns with the production ramp of our Spartanburg, South Carolina manufacturing facility, enabling us to rebalance our production capacity geographically and advance our effort to operate efficiently.” Employees affected by the closure will receive severance packages and career transition assistance.
The Virginia plant’s shutdown is the latest development in Keurig Dr Pepper’s evolving coffee production network. Earlier this year, the company also shifted operations from a Vermont plant to a different location within the state.
In addition, Keurig Dr Pepper reported in February that its coffee brewing systems are used in nearly 40 million households, with potential for over 50 million more. The company claims that one-third of all U.S. coffee makers are either Keurig or compatible with its systems.
This trend of consolidating and upgrading manufacturing facilities is common in the food and beverage industry. PepsiCo, for example, announced the closure of a Quaker Oats plant in Illinois in April, resulting in 510 job losses. Campbell Soup also revealed plans to shut down one plant and reduce the size of another while investing $230 million in newer facilities through fiscal 2026 to enhance its supply chain efficiency.