Dr. Praeger’s to cut 168 NJ jobs, shift production to Kentucky

Better-for-you frozen food maker Dr. Praeger’s Sensible Foods said it will shift production from New Jersey to Kentucky early next year.

Ahead of the change, the Vestar Capital Partners-owned company expects to eliminate 168 positions at its Elmwood Park site by Dec. 30, according to a filing with the New Jersey Department of Labor & Workforce Development.

In an Oct. 2 statement to NJBIZ, Dr. Praeger’s said, “Today, we informed employees of our decision to permanently close our Elmwood Park, New Jersey, manufacturing facility, and transition production to a new facility in Kentucky operated by a trusted manufacturing partner.”

Dr. Praeger’s noted that while those operations will shift out of state, the company will remain headquartered in Elmwood Park. It added that remaining employees “will transition to a new corporate office in the Elmwood Park area early in 2027.”

It is not immediately clear what size workforce Dr. Praeger’s will have following the layoffs.

‘Dignity, respect and fairness’

“We know this is difficult news for the employees and families impacted, and we are incredibly grateful for everything our team has contributed to Dr. Praeger’s Sensible Foods LLC over the years,” Dr. Praeger’s said. “Our priority throughout this transition is to treat our employees with dignity, respect and fairness and make sure they have access to the support and resources available to them.”

The company added, “Dr. Praeger’s Sensible Foods LLC will continue serving customers, investing in product innovation, and pursuing future growth opportunities. Our new manufacturing partnership is designed to maintain the high standards of quality our consumers expect while providing additional capacity to support expansion and bring new products to market.”

Cardiothoracic surgeons Peter Praeger and Eric Somberg founded Dr. Praeger’s in 1994. Today, the company is a leader in the all-natural, vegetarian, vegan, gluten-free and kosher frozen food categories.

Its lineup of veggie burgers and meat-free burgers, as well as frozen appetizers, snacks and sides, can be found nationwide at major retailers like Target, Walmart, Whole Foods Market, Kroger, Albertsons, Wegmans, Publix and Meijer.

Private equity push

In January 2021, New York City private equity firm Vestar Capital Partners made a majority growth investment in the company to help accelerate growth, expand distribution and develop new products. Under the deal, both the Praeger and Somberg families retain a significant ownership stake.

Financial terms were not disclosed.

Since then, the company has added several C-suite executives with vast expertise in the consumer-packaged goods space.

Andy Reichgut took over as CEO in July 2022, succeeding Larry Praeger, the son of the company co-founder. Larry Praeger now serves as special advisor and board member. Reichgut joined from vegan cheese maker Violife. He previously held executive roles at Veggies Made Great, Pinnacle Foods, Mars and Reckitt Benckiser.

Dr. Prager’s has also welcomed anew chief customer officer, new chief financial officer and new chief supply chain officer.

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