Franklin Foods Closure Deepens Economic Strain Across Franklin County

FRANKLIN COUNTY, Vt. — A long-standing staple of the county’s dairy economy is set to disappear this summer, compounding job losses and business closures that have rattled communities across northern Vermont.

Franklin Foods, a cream cheese producer based in Enosburg Falls with roots dating back to 1899, announced it will close its U.S. operations at the end of July. The decision follows a sale and restructuring under new ownership, with corporate leaders citing shifting market conditions and lack of profitability in the domestic dairy sector. The closure will affect about 100 workers at the Vermont plant, marking a major loss for one of Franklin County’s historic employers.

The plant’s shutdown adds to a string of recent economic jolts across the region. Nationally known baby formula maker Perrigo disclosed plans to phase out operations at its Georgia, Vt., facility—affecting more than 400 workers by 2027—after determining that upgrades would be too costly. That announcement revived memories of past losses like the closure of the Energizer plant in St. Albans, which shed about 70 jobs over a decade ago.

Local business owners and officials say these closures ripple far beyond factory floors, tightening already competitive job markets and diminishing consumer spending in downtown districts. “When a major employer leaves, it’s not just jobs,” said one economic development official. “It’s less traffic for our restaurants, less revenue for our retailers, fewer young people staying in town.”

Smaller closures—family-run stores and service businesses—have also chipped away at village commercial life, leaving some residents with limited local options for groceries, dining and everyday shopping.

County leaders are pushing workforce training and small business support to stem the tide, but they acknowledge the challenge is steep in a rural economy still adjusting to broader shifts in manufacturing and consumer behavior.

As Franklin County heads into summer, the loss of legacy brands like Franklin Foods underscores the fragile balance facing Vermont’s small-town economies.