The Switzerland-based food group will shutter a plant producing Smarties and KitKat figures due to a significant drop in seasonal product sales.
Nestlé will close its confectionery plant in Diósgyőr, Hungary, by year-end, citing a sharp decline in demand for seasonal chocolate products. The facility, which manufactures hollow chocolate figures for brands including Smarties, KitKat, and Milky Bar, has seen output drop significantly in recent years.
The plant contributes less than 3% of Nestlé’s revenue in Hungary and under 1% of its domestic manufacturing volume. Opened in 1962 and acquired by Nestlé in 1991, the site exports to over 20 countries. Production will shift to a UK co-manufacturer.
Nestlé is in talks to sell the factory to an investor to continue confectionery production, aiming to transfer as many employees as possible. The company assured that product availability will remain unchanged.