Kellogg distribution center in Evansville to close this year

Kellogg Co. announced it is ending the direct store delivery portion of its snacks business this year, causing the closure of a distribution center on North Kentucky Avenue in Evansville.

Closures of similar facilities across the country are expected to be completed by the fourth quarter of this year, but the timing will vary by location.

Distribution centers typically employ about 30 people, according to Kellogg. Nationwide, more than 1,100 jobs will be lost.

The decision means that the snack and cereal maker will be using grocers' warehouses rather than directly deliver many of its products to store shelves.

"While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees," Kris Charles, a company spokesman.

According to a company statement, the new model will "reduce complexity and cost structure while driving growth and profitability for the company and its retail partners."

The statement from Kellogg said severance and benefits will be offered to employees affected.

"As the distribution shifts from our network to our retailers’ networks, so too will the work," Charles said. "We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete. As a result, we are optimistic that our employees will find similar employment once this transition is complete. As the affected employees work throughout the U.S., this change will not have a sizeable impact on any one community."

State Rep. Holli Sullivan, R-Evansville, released a statement about the Kellogg announcement.

"This is disappointing because the Kellogg Co. has been such a great employer in Evansville, and there will be job loss," Sullivan said. "We will be working with other retail partners in the community to assist those who have been displaced with finding new, gainful employment.”

Kellogg's stock price was up about 4 percent to $76.47 a share Thursday afternoon.