The company previously had its HQ in Irwindale, CA, and also had a powder facility in Salt Lake City, UT, which will now be closed. The moves are aimed to help the company more effectively serve the rapidly changing sports nutrition market, Child said.
“Product cycles in the sports nutrition sphere are shortening, with new product introductions based on the strategy of movement toward mainstream active nutrition,” Child told NutraIngredients-USA. Among these trends, the move toward higher protein dosages is paramount, and Child said he doesn’t see that waning any time soon.
“Protein is by far the hottest trend for both our bar and powder categories. We see the protein trend increasing,” he said.
Nellson CEO Scott Greenwood said the moves are part of a strategic rethink for the company. Having all of the new capabilities under one roof made sense, though he said the company is aware that it might be unwelcome news for some employees in the existing facilities.
Consolidation in wake of acquisitions
“Having successfully executed two major acquisitions over the last fourteen months, we have undergone a detailed analysis and determined it was necessary to realign our operational capabilities to better serve customer demand. We do not take these actions lightly and are in the process of reviewing personnel needs for potential relocation,” Greenwood said.
In the end, though, Greenwood said the changes will create a stronger company that will be adding jobs in the new plant.
The company said the investment in the facility, which is approximately 300,000 square feet, reflects significant infrastructure and process improvements, including 14 upgraded blending rooms, enhanced allergen weigh-out rooms, high-speed packaging equipment, and additional functional capabilities for new products. The new headquarters will also house a Research and Development Center of Excellence, creating a centralized corporate R&D function for powder innovation and applied development. The companhy said it plans to add about 225 jobs with the new expansions. Upon completion of the final phase of the project, the company says the Anaheim location will be a state-of-the-art facility exceeding industry standards for food safety and technology.
“The plan includes an investment in our new corporate headquarters as well as a substantial investment in the manufacturing plant in Anaheim. These changes will strengthen our capabilities and enable Nellson and our employees to provide an improved level of service to our customers,” Greenwood said.