PepsiCo pulls plug on Spitz factory in southern Alberta

File image of a Spitz Sunflower Seeds worker wrapping a pallet at a facility in Bow Island, Alberta

The Spitz Sunflower Seed factory in Bow Island, Alberta will be shuttering its doors this summer leaving more than 50 people unemployed.

The iconic business has been a fixture of the community of approximately 2,000 people since 1989 when the original owner started the business with a single roaster.

After nearly two decades of sizable growth, Spitz was sold to Frito-Lay, an arm of PepsiCo, in 2008.

On Thursday, PepsiCo officials issued a statement announcing the ‘difficult decision’ to close the Bow Island plant.

“This facility will close later this year and Spitz production will be moving to an existing contract manufacturer partner in the U.S.

This was a business decision based on an extensive evaluation of the long-term viability of this site and its ability to meet our increasing volume requirements for the brand, which will continue to play an important role in our North American portfolio.

We are committed to assisting our impacted associates with financial support, access to financial counselling and job placement services.”

This is not the first time PepsiCo has reduced its footing in southern Alberta. In 2016, the company closed its Spitz distribution centre in Medicine Hat and transferred its distribution to the Bow Island plant.

Drew Barnes, MLA for Cypress-Medicine Hat, says the closure of the plant will impact the community but Bow Island will recover.

“It’s a big hit to Bow Island,” said Barnes in an interview with CTV Lethbridge. “It’s unfortunate to the 53 people involved and those that are indirect sub-contractors as well.”

“I will say that Bow Island has a tremendously strong work ethic, that Albertan free enterprise ethic, and you know they’re involved in other pulses and sugar beat and they're involved in a lot of manufacturing as well.  Hopefully they'll continue on and have the opportunity to flourish.”

The mayor of Bow Island, Gordon Reynolds, released a statement on Friday expressing his hope that the facility could be repurposed by new owners for processing of local agricultural products. Reynolds says a new business could provide jobs to replace those lost with the closure of the Spitz factory.

The Spitz factory in Bow Island is set to close in July. Bow Island is located along Highway 3 between the cities of Lethbridge and Medicine Hat.