Caito Foods to exit fresh-cut business

Caito Foods BB #:334080 plans to shut down its fresh-cut business this spring.

In a letter to the Indiana Department of Workforce Development February 27, the Indianapolis-based company said it lost the contract that makes up the majority of its fresh-cut business, so it will close the fresh-cut manufacturing operation.

In the letter, the company said more than 300 employees will begin being laid off starting April 27, but the decision will not affect its produce distribution business.

Caito Foods, which was acquired by SpartanNash BB #:104892 in 2017, closed its Fresh Kitchens operation last summer to focus more on fresh-cut. Fresh Kitchens offered cooked and packaged fresh protein-based foods and complete meal solutions for retail customers.

Last spring, Caito Foods was linked to a fresh-cut melon salmonella outbreak that sickened more than 100 people in 10 Midwest and Southeastern states.

According to FDA, the fresh-cut products involved in the outbreak were sold at Kroger, Target, Trader Joes, Walmart and Amazon/Whole Foods.