Keurig Dr. Pepper facility in Windsor to close

Keurig Dr. Pepper will close its roasting plant in Isle of Wight County’s Shirley T. Holland Intermodal Park on the outskirts of Windsor by the end of the year.

Isle of Wight County and Keurig each confirmed the impending shutdown in July 17 statements.

“The timing of this closure aligns with the production ramp of our Spartanburg, South Carolina, manufacturing facility, and enables us to rebalance our production capacity geographically and advance our effort to operate efficiently,” said Katie Gilroy, senior director of corporate communications for Keurig. “We are thankful for the contributions and commitment of our Windsor team and the local community, and we will support our employees through this transition, including severance packages and career planning assistance.”

Gilroy said the cessation of operations would occur “by the end of the fourth quarter.”

According to the county’s news release, the closure will impact 379 employees.

The soft drink manufacturer, which produces the Dr. Pepper and Snapple brands and the single-serve K-cups used in Keurig coffee makers, opened the 330,000-square-foot building in 2012. According to the county, Keurig is Isle of Wight’s third-largest machinery and tools taxpayer behind International Paper’s Franklin mill and Smithfield Foods.

“The Economic Development staff will work with the Commonwealth’s Rapid Response Team to provide resources to impacted employees and assist the company as operations wind down,” said Isle of Wight Economic Development Director Kristi Sutphin.

Assistant County Administrator Don Robertson said Isle of Wight has not yet discussed the future of the building, which he said the county does not own. The Keurig plant is adjacent to where Isle of Wight is developing the 352,000-square-foot “460 Commerce Center,” a distribution center that broke ground in April.

“It’s premature to make any assumptions about the disposition of the building,” Robertson said.

According to the county’s GIS website, the land and the building were collectively valued at $22.7 million as of the 2023 reassessment of property values.

According to past reporting, Keurig received $7 million in local incentives when it opened, pledging in 2012 to invest at least $180 million and hire at least 800 full-time workers by the end of 2016 in exchange for a 25% discount on machinery and tools taxes through 2031 and a 70% discount on real estate taxes through 2021.

Four years later, Keurig had invested $144 million and created 550 jobs but fell 20% short of the goal, prompting Isle of Wight to cut its incentives by an equivalent 20%.

Windsor Mayor George Stubbs said, “I was very surprised and saddened to learn of KGM’s decision to cease operation of the Windsor facility.”

Stubbs said he feels the decision will have a large impact on the economy of the town of Windsor.

“The loss of revenue for our business owners will have an impact on some that could be devastating,” he said.

He expressed concern for the effect the closure may have on the town with regard to tax revenue and then highlighted the human element.

“The more human effect this closing will bring to the 300-plus employees that will need to pick up and relocate to another facility or seek employment elsewhere, I feel, will be extremely difficult for them and their families,” he said. “My best wishes go to them during this transition time.”

This is a developing story. Check back for updates.

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