HOUSTON – The Kellogg Company has announced that it will begin closing distribution centers across the county, including one in Houston.
Houston's distribution center is one of 38 facilities that will close as the company moves toward a warehouse system.
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"We see the warehouse model as a clear advantage for us," said Paul Norman, president of Kellogg North America. "In fact, we realize both higher service levels and share in the U.S. Snacks categories and channels that sell through warehouse distribution already."
Officials said the decision was made in part due to shopping patterns and behavioral changes over the past few years, with consumers shopping in more retail outlets and online. They claimed that moving to a warehouse distribution system will better meet consumers' evolving needs.
"While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees," Kris Charles, a company representative, said. "On average, our distribution centers employ approximately 30 full-time workers."
Charles said that some of Kellogg's biggest retail partners have expressed interest in hiring some of the employees, adding that he's optimistic they will find similar employment once the transition is complete.
The company expects all closures to be complete by the end of 2017.