Nestle To Close Longtime Freehold Coffee Factory In November

FREEHOLD, NJ — The Nestle Corporation will close its Freehold instant coffee factory here as of November, a move that has been looming for several weeks now.

"We have made the difficult decision to close our Freehold, New Jersey, factory," the company said in a statement Friday.

"We are committed to doing all we can to support our people during this change. We intend to work with the union to develop comprehensive separation packages for our hourly employees to ease the transition to their next career," the company said.

The last day of production will be in November, with a last day for most employees on Nov. 17, the company said.

The company confirmed 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.

"We’ve made significant investments in Freehold over the years, but the factory's many challenges, specifically its age and limited operational flexibility, would cost tens of millions in additional investments to make it viable.

"How consumers drink coffee is constantly evolving and our manufacturing network must be set up to meet the needs of consumers now and long into the future," the company said.

This decision follows discussions with local and state officials over the last few weeks, as well as with union leadership of Teamsters Local 11.

Michael Curcio, president of Local 11, said the union was involved in talks with the company since early May and the final decision "took the wind out of our sails."

"People are upset, angry. They are changing the lives of 200 people," he said, adding that a company vice president came to the plant and informed the workers at 10 a.m. Friday about the decision.

He said the plant temporarily closed after the announcement and will reopen Monday, with people on their regular shifts.

Curcio said the process of talks was fruitless, with concessions by the union considered a "drop in the bucket," he was told.

"They (the company) could have been more forthcoming," he said.

He said local and state legislators have assured him they will continue to be involved in the issue, and he has spoken with U.S. Sen. Cory Booker, state Sen. Vin Gopal and U.S. Rep. Chris Smith, as well as Freehold Mayor Kevin Kane.

Government officials have been working with company representatives, as well, during the past several weeks.

And Nestle acknowledged that.

"We are grateful for the dialogue with community leaders during this process. We will continue to provide updates to our Freehold employees ahead of the factory’s last day of production in November," Nestle said.

But Curcio said he will press for a comprehensive benefits package, especially for older workers who are nearing Medicare and Social Security age, to see that there is a sufficient "bridge" for local members.

Closing the plant right before Thanksgiving still hurts, he said.

"We built the coffee business for Nestle," Curcio said.

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.

Just last Tuesday, the union representing 200 workers at the plant rallied at the factory to support employees, but to no avail.

Mayor Kane and members of the Borough Council met with Teamsters Local 11 leadership Tuesday morning to "offer encouragement and support." Kane himself worked at the plant as a student.

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.

This story has been updated to include union representative comments.