Modesto plant that manufactures Mexican-style ice cream will close, costing 290 jobs

Nearly 300 people will lose their jobs with the July closure of a Modesto plant that makes Mexican-style ice cream.

Tropicale Foods announced Monday that production will shift to its plants in Ontario, San Bernardino County, and Lubbock, Texas. The company markets ice cream bars and sandwiches under the Helados Mexico and La Michoacana brands.

The business dates to 1988, when Ignacio Gutierrez started a snow cone cart in Turlock. It moved in 2002 to the Beard Industrial District in Modesto. The founder later sold the company.

The closure will eliminate 290 of the 814 jobs at Tropicale, said an email from Malana Harpst, director of accounts receivable and customer service.

The expected closure date is July 19, said an email from Josh Levitt of Fika, a public relations firm.

“Tropicale is committed to treating its employees with dignity and respect throughout this process, and, in addition to required legal notices, will provide certain separation benefits and assistance as they transition to other opportunities,” he said.

“Tropicale is proud of the work done by its employees at the Modesto plant, many of whom were instrumental in building its iconic Hispanic brand.”

Doris Foster, director of Stanislaus County Workforce Development, said her office has not received a Worker Adjustment and Retraining Notification (WARN) notice of the closure. “We have a Rapid Response Coordinator who will reach out to them today to offer services,” she said in an email to The Bee on Tuesday. “Typically we receive a WARN notice that will list out all of the classifications being let go. We then look to see if there are other businesses in our area that are hiring. We will offer to provide services to the business and the dislocated workers.”

Workforce Development services will include going to the job site and providing workshops sharing resources such as training, assistance with resumes and job leads. “We will also enroll individuals into our program so that we can provide individual job counseling services,” Foster said.

The closure announcement came about six weeks after safety concerns prompted the recall of 5,224 boxes of mango-flavored bars from the plant. The U.S. Food and Drug Administration said they “have the potential to be contaminated with salmonella,” but no cases among consumers were reported.

Mexican-style ice cream has been a notable niche for the dairy industry in Stanislaus County, one of the nation’s leading milk producers. The bars and sandwiches have vibrant flavors and dense textures.

The Lapham Drive plant employed 130 people when The Modesto Bee visited in 2009. The mortgage crisis had rattled the economy, but consumers could still find an affordable frozen treat.

“The funny thing is that this started with Latinos buying it,” Gutierrez said at the time. “Now everybody’s buying it.”

The company has no relation to La Michoacana Plus, an ice cream chain that opened a south Modesto parlor in 2019. It is at 1620 Crows Landing Road.