Business & Tech

Bitter Last Day As Freehold's Nestle Coffee Plant Finally Closes

After 75 years, Nestle, a major employer in the Freehold area, officially closed Friday, a victim of its age, global business needs.

FREEHOLD, NJ — The Nestle coffee plant, part of the borough's history for 75 years, saw its last day of production on Friday, company officials confirmed.

And the union representing the some 227 employees still at the Jerseyville Avenue plant after its closure was announced in June says the plant's end "leaves a scar in Freehold."

For the employees, Teamsters Local 11 President Michael Curcio said the union did its best to negotiate severance packages to help bridge employees to their next jobs.

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But the closure at the start of the holiday season hurts, said Curcio.

"We had senators, congressman meeting the company," he said, but ultimately business factors led to the decision in June.

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He said as a token of appreciation the company gave employees "a half pound of pasta and an etched glass - '75 years in Freehold'."

So he said he had union stewards at the plant Friday morning to give out 200 turkeys to employees.

"They deserved a hell of a lot more," Curcio said.

The closure on Nov. 17 was announced several months ago and Curcio said some employees already moved on to other jobs. He said a small number of employees will be staying through December to close out operations.

Freehold Mayor Kevin Kane expressed his "continuing disappointment" with the closure of the Nestle Plant in Freehold Borough, saying "large, multinational corporations have little concern for small town America and the people who live here. It’s the end of an era for the borough," he said.

“We need to focus on those people who lost their jobs and their families," he added.

The borough said it is optimistic that a new owner could be found for the property, opening up new possibilities for the community.

"To this end, the borough has commissioned a redevelopment study of the area and is working with the New Jersey Economic Development Authority and state Sen. Vin Gopal to find a new and better use for the facility. The borough is also reviewing groundwater contamination issues for which Nestle remains responsible," the borough said in a statement.

Nestle offered its own thanks to the employees and the town.

“We’re honored to have been part of the Freehold community for the past 75 years," a spokesperson said on Friday.

"Over the past few months we’ve been focused on supporting our employees looking to transition to their next careers. We’ve worked collaboratively with government and Teamsters Local 11 to host job fairs, resume and interview workshops and offer professional headshots," the company said.

Now the property, which is also being remediated environmentally, will be put up for sale and the borough will focus on how to redevelop the area.

This day was looming for employees, who worked with their union to find alternatives, but to no avail.

Nov. 17 had been set as the last day for most employees when the company announced the closure in June.

Before that, there had been discussions with local and state officials, as well as with union leadership of Teamsters Local 11.

The company has said it is utilizing "global" production facilities in its network to support coffee-drinkers' needs:

"Specifically, we intend to further utilize our Veracruz, Mexico and Araras, Brazil sites, which have increasingly been supporting the U.S. volume needs in the past few years," the company said.

The age of the plant and cost of needed upgrades were major factors in the decision.

The company plans to sell the site, as environmental remediation continues

"We are looking to put the property up for sale in Q1 2024," a company spokesman said on Friday.

And the spokesperson added that Nestlé has been engaged in a long-term environmental remediation project from "historic operations" at the Freehold site. "We remain committed to ensuring the completion of remediation."

The Freehold plant has been a mainstay in the borough, and part of its local industry heritage that has seen the gradual decrease in manufacturing facilities.

As one would drive from Route 33 to Jerseyville Avenue, the aroma of coffee steaming from vents at the structure was a sure sign you were nearing downtown Freehold.

According to the borough, the plant pays about $600,000 annually in property taxes and provides over $25 million in ratables.

Nestle remains a "large employer" in New Jersey, where its "employee base has doubled over the past few years,” the company said.

Nestle Health Science has five U.S. locations in New Jersey – its U.S. corporate headquarters in Hoboken, Global Product Technology Center in Bridgewater, a factory in Leonia and two small warehouse facilities, the company said.

The company cited some if its U.S. business investments:

  • In the past few years, Nestle has invested about $3 billion to enhance its U.S. manufacturing network and capabilities to meet increased consumer demands, creating more than 1,500 new jobs and fueling economic development in the communities where we operate.
  • In the U.S., we employ over 28,000 people across 28 states and 119 facilities; 61 factories.

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