Westrock Coffee Co

Restructuring Activities

During the second quarter of 2024, the Company committed to a plan to consolidate its manufacturing operations, which will result in the closure and sale of its West Winds manufacturing facility in Concord, NC, and the closure of its manufacturing facility in Richmond, CA. All production from the impacted facilities will be consolidated into other facilities operated by the Company in Concord, NC and Conway, AR. The closure of the West Winds facility was completed as of June 30, 2024, and the sale of the land and buildings is expected to be completed within the next 12 months. Production in the Richmond, CA facility is expected to cease during the third quarter of 2024. In addition, during the second quarter of 2024, the Company committed to targeted restructuring activities to improve operational efficiency by reducing excess workforce capacity in our selling, general and administrative functions. We estimate annualized savings from these initiatives to be approximately $10.0 million, and we expect to begin fully realizing these savings, on a run-rate basis, in the first quarter of 2025.