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Pepsi, Theo Muller stop production at Batavia yogurt plant

PepsiCo Inc and German dairy company Theo Muller Group said on Thursday they had stopped production at their Batavia yogurt plant in upstate New York, without providing a reason.

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Reuters file photo.

PepsiCo Inc and German dairy company Theo Muller Group said on Thursday they had stopped production at their Batavia yogurt plant in upstate New York, without providing a reason. Dairy Farmers of America have agreed to purchase the facility and have also expressed interest in hiring several of the plant's employees, PepsiCo said in an e-mailed statement.

The closure of the plant will result in job losses for 66 employees of the plant.

PepsiCo said it will be offering transition assistance to all affected employees of the Muller Quaker Dairy plant.

Production was halted because the plant did not meet expectations, the Associated Press quoted the company as saying. 

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