J&J Snack Foods closed three plants under Project Apollo, carrying $15M of $20M savings

J&J Snack Foods, maker of Dippin' Dots, Icee and SuperPretzel, has finished the manufacturing phase of Project Apollo, its business transformation plan. CFO Shawn Munsell told investors in early May 2026 that the plant consolidation — which included closing three production facilities — was 'materially complete'.

The company closed facilities in Atlanta; Holly Ridge, North Carolina; and Colton, California, by the end of its first fiscal quarter of 2026, per its 10-Q. The closures are expected to contribute $15 million of the $20 million in annual savings Apollo targets. The remaining $5 million comes from administrative and distribution cost reductions, about $3 million of it from distribution efficiency in Q3 and Q4.

The plan builds on two years of adopting a regional distribution center model that simplifies the warehouse network by placing centers geographically closer to customers. Near-term pressure remains: distribution costs ran 12.1% of sales in Q2, up from 11.7% a year earlier, including roughly a $400,000 headwind from higher diesel fuel prices in March.

Plant consolidation 'materially complete': $15 million of Apollo's $20 million annual savings, with about $3 million more due from distribution efficiency in Q3–Q4.

Project Apollo targets $20 million in annual savings, and the manufacturing footprint was the largest single contributor at $15 million.

Three plants — Atlanta, Holly Ridge and Colton — were closed to consolidate production by the end of Q1 2026.

With plant closures largely complete, administrative and distribution costs became the next savings pool, worth the remaining $5 million.

A regional distribution center model adopted over the last two years places centers closer to customers to simplify the warehouse network and improve the supply chain.

Sequence a network overhaul: close and consolidate plants first to lock in the biggest savings, then chase the smaller administrative and distribution efficiencies.

Apollo shifts to its distribution phase, with about $3 million of annualized savings expected from distribution efficiency across Q3 and Q4. Quarterly distribution costs remain elevated at 12.1% of sales, pushed up by fuel and dry-ice costs; the report gave no update on whether the full $20 million had yet been realized.