Chicago, Illinois – Blommer Chocolate, a key player in the confectionery industry, will be permanently closing its original downtown Chicago factory after 85 years of operation. The decision comes as a result of a decline in sales, high maintenance costs, and operational challenges faced by the aging facility.
The brick factory, situated at 600 W. Kinzie St., has been a staple in the Fulton River District, emanating a distinct aroma of chocolate that has become synonymous with the area. Blommer Chocolate cited escalating operating expenses and issues with production reliability as the primary reasons for the closure, highlighting the impact of the factory’s historical significance and age on its ability to sustain profitability.
With operations ceasing immediately and an official closure date set for May 31, over 250 employees at the Chicago factory will be affected by the shutdown. While some staff may be offered alternative positions within the company, the majority will face job displacement as a result of the closure.
The parent company of Blommer Chocolate, Fuji Oil Holdings, reported significant financial losses in the third quarter of the fiscal year ending March 31. Factors contributing to these losses included the economic challenges posed by the COVID-19 pandemic, fluctuating raw material prices, and increased fixed costs due to inflation. The decision to close the Chicago factory is projected to lead to a $30 million annual improvement in the company’s operating profit.
Mark Okita, Blommer’s Chief Operating Officer, described the closure of the Chicago location as a difficult yet necessary step towards advancing the company’s growth and competitiveness in the industry. The move is anticipated to facilitate a more focused allocation of resources towards the company’s remaining production facilities.
As part of its strategic realignment, Blommer Chocolate plans to invest $100 million in enhancing its other manufacturing sites, including the expansion of its facility in Campbellford, Ontario, Canada. This investment aims to establish the Campbellford factory as one of the premier confectionery coating manufacturing facilities in North America.
Amidst these changes, Blommer Chocolate will maintain its North American corporate headquarters in Chicago. The parent company, Fuji, intends to expand research and development capabilities at the headquarters, creating a center dedicated to innovation in product development and ingredient research.
The closure of the iconic Chicago factory marks the end of an era for Blommer Chocolate, signifying the company’s commitment to adapt to evolving market dynamics and sustain its position as a leader in the confectionery industry.