Why Nestlé’s factory closure could be first of many

The Diósgyőr factory produces hollow chocolate figures for Smarties, KitKat and Milky, Bar. (Image: Nestlé)Diósgyőr factory closureFalling seasonal confectionery sales may have been the catalyst for closure of the Diósgyőr factory, but the decision reflects a broader industry push to streamline manufacturing operations, says Nandini Roy Choudhury, principal consultant for food and beverage at analytics group Future Market Insights. The Diósgyőr factory produces hollow chocolate figures for Smarties, KitKat and Milky, Bar. While the circumstances surrounding the Diósgyőr factory are specific to both the company and the category, many of the forces driving the closure are being felt right across the confectionery sector. Ultimately, the closure serves as a reminder that confectionery manufacturers are entering a new phase of rationalisation.