Kellogg cites costs in New York distribution site closure

Markets Associated Press

Kellogg is closing a distribution center in upstate New York as part of a nationwide plan to remodel its business.

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The distribution center in Cicero joins 38 other facilities across the country that are closing as the cereal and snack producer moves toward a warehouse system.

Officials from Kellogg say the reorganization is a response to new consumer shopping patterns and a push to optimize production. Now, stores will have to place their own orders and deliveries as Kellogg will only deliver to wholesalers.

Kellogg did not announce how many workers will lose their jobs at the Cicero location. Kellogg spokeswoman Kris Charles says each distribution site has about 30 full-time employees on average.