Have you heard that Dot’s Pretzels is closing a factory? Is Dot’s Pretzels going out of business then?
Businesses closing mass stores has become a common phenomenon these days, but when you hear news about your favorite snack brand shutting down, it hits differently.
Keep on reading this article to find out the truth behind whether Dot’s Pretzels is going out of business or there is nothing to be concerned about.
About Dot’s Pretzels
Dot’s Pretzels is an American brand that is known for offering special family pretzels. The company was founded in 2011 in North Dakota by founder Dot Henke.
Dot’s Pretzels had locations in North Dakota, Kansas, and Arizona before it was acquired.
In December 2021, Hershey’s, an industry-leading snack company, acquired Dot’s Pretzels for $1.2 billion, and now there are rumors that Hershey’s is planning to close down Dot’s Pretzels factory.
Is that true? Let us find out!
Hershey’s Acquisition of Dot’s Pretzels
As mentioned before, The Hershey Co. acquired Dot’s Pretzels, along with one of Dot’s manufacturing partners, for a whopping $1.2 billion.
At that time, Dot’s was one of the fastest-growing Pretzel brands in America. What started in a small kitchen with zesty and lip-smacking garlicky snacks quickly grew beyond North Dakota’s borders in no time.
As such, Hershey’s saw potential in the company and acquired Dot’s; and in addition to Dot’s, Hershey’s also acquired Pretzel’s Inc. The company mentioned that these acquisitions would allow it to diversify its product line of candies and chocolates to also include salty snacks.
Is Hershey’s Closing Dot’s Pretzels Factory?
Yes, Hershey’s is planning to close Dot’s Pretzels factory in Velva, North Dakota.
The closure at the Velva location would affect 27 employees who will be offered a chance to work at an alternative location of Hershey’s in Illinois or Kansas.
Those who do not accept the relocation option would be given severance packages “including a lump sum payment, subsidized COBRA health care benefits, and outplacement assistance,” A spokesperson for Hershey’s said.
Why Is Dot’s Pretzels Closing?
Hershey’s is closing Dot’s Pretzels factory in Velva, North Dakota, because of the physical limitations of the building and the cost associated in running the facility.
Todd Scott, a spokesperson for Hershey’s cited the reason in the following statement:
“As you may know, Dot’s Pretzels is the fastest growing U.S. pretzel brand and is one of The Hershey Company’s leading power brands in our portfolio of Salty Snacks. But to maintain that position, we must increase our capacity and improve efficiency at our manufacturing plants to continue to grow the brand.
Due to the physical limitations of the building and cost associated with the Velva facility, it has led us to the hard decision to cease operations and close the facility.
Our goal is to ensure everyone is supported during this period of change, with Velva hourly employees being offered the option of relocation to select plants within the Hershey manufacturing network. Those electing not to relocate will be offered a severance package. This severance package includes a lump sum payment, subsidized COBRA healthcare benefits and outplacement assistance.”
Is Dot’s Pretzels Going Out Of Business?
Because Hershey’s is closing down Dot’s Pretzels factory in Velva, you might be thinking- Is Dot’s Pretzels going out of business?
Well, no, Dot’s Pretzels is not going out of business, and the decision to shut down its Velva location is simply made to increase and maintain efficiency at its manufacturing plants and to trim down unnecessary costs.
Dot’s Pretzels is one of the fastest-growing salty snack brands, and Hershey’s sees a lot of potential for it to grow and expand in the future.
You do have to worry by thinking- Is Dot’s Pretzels Going Out Of Business?
Your favorite snack brand is one of the most loved and fastest-growing brands and is not going anywhere anytime soon.
Hershey’s, the owner of Dot’s Pretzels, had to shut down one of the factories because of the reasons we shared in the guide above.
So there is no need to worry.
Where is Dot's Pretzels headquartered?
Dot’s Pretzels is headquartered in North Dakota.
Are Dot's Pretzels expensive?
Dot’s Pretzels are quite delicious, but they are sold for twice the price. Given its high price, it can be seen more as an occasional treat.
Who was the founder of Dot's Pretzels?
Dorothy Henke bought some buttery pretzels from a nearby store and started experimenting by coating them in spices and different flavors. When the couple started sharing these pretzels with friends and family members, requests for more started pouring in, and that is how Dot’s Pretzels was founded.