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Swiss food and beverage giant Nestlé is closing its 75-year-old coffee plant in Freehold by the end of the year.

The Jerseyville Avenue facility is scheduled to shut down in November, with the final day for most of its 200 employees scheduled for Nov. 17, the company confirmed to NJBIZ.

“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,” a Nestlé spokesperson said.

According to Nestlé – which has its U.S. headquarters in Arlington, Va. – the decision was a “difficult” one that follows discussions with local and state officials, as well as union leadership, in recent weeks.

“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 spokesperson said, adding, “Nestlé remains a large employer in New Jersey, where our employee base has doubled over the past few years.”

Within the Garden State, Nestlé Health Science, a wholly owned subsidiary of Nestlé, has 1,000 workers across its U.S. headquarters in Hoboken, a global product technology center in Bridgewater and a factory in Leonia.

The Freehold announcement comes two days after members of Teamsters Local 11 held a three-hour demonstration to fight against any plans to close the location. Afterward, the union met with management, but said “the company refused to give Teamsters clarity about the plant’s future, leaving hundreds of families and the Freehold community in limbo.”

‘At the expense of New Jersey workers’

On June 22, workers were called to a 10 a.m. meeting at the Radisson hotel in Freehold where Nestlé informed them of the fate of the factory.

Following the meeting, Teamsters Local 11 President Michael Curcio said, “Without any regard to the livelihoods of 200 workers and their families, Nestlé executives announced today that they will close the Freehold plant. This company should be ashamed for turning their backs on workers in Freehold and the community that has been home to this company for more than 70 years.

“Nestlé took advantage of New Jersey taxpayer subsidies, built a $340 million facility in Mexico, and will now exploit cheaper labor in another country at the expense of New Jersey workers—this is nothing short of disgusting corporate greed. Teamsters Local 11 will continue fighting to protect our members at Nestlé. We demand this company meet the needs of these workers as they navigate the next steps during this very difficult time,” he said.

Although the company’s beverage division – whose brands include Nescafe, Clasico, Taster’s Choice, Coffee-Mate, Nestea, Carnation, Juicy Juice, Ovaltine and Nesquick – has four factories across the country, the Freehold plant is the only one that produces coffee.

According to the union, company managers told employees the plant would close this year as part of a plan to relocate production to Mexico, where the global corporation invested that $340 million to build a state-of-the-art coffee factory. After opening in 2022, the new Nescafe plant in Veracruz brought 1,200 jobs to the region, making Mexico Nestlé’s main producer of coffee in the world.

In its statement Friday, the corporation noted that it has invested $3 billion in recent years to upgrade U.S. manufacturing networks and capabilities to meet consumer demands, creating more than 1,500 new jobs.

Across the country, Nestlé employs 28,000 workers at 119 facilities and 61 factories in 28 states.

Editor’s note: This breaking story was updated with additional details at 2:02 p.m. ET on June 23, 2023.