VELVA, ND (KXNET) — The Hershey Company, owner of the Dot’s Pretzels brand that originated in North Dakota, is shutting down its manufacturing facility in Velva.

In a statement Tuesday morning, Hershey noted, “Dot’s Pretzels is the fastest growing U.S. pretzel brand and is one of The Hershey Company’s leading power brands in our portfolio of Salty Snacks. But to maintain that position, we must increase our capacity and improve efficiency at our manufacturing plants to continue to grow the brand.”

Hershey said the physical limitations of the Velva building and the costs associated with the facility has led the company to cease operations there and close the facility.

“Our goal is to ensure everyone is supported during this period of change, with Velva hourly employees being offered the option of relocation to select plants within the Hershey manufacturing network,” Hershey said in a statement. “Those electing not to relocate will be offered a severance package. This severance package includes a lump sum payment, subsidized COBRA healthcare benefits and outplacement assistance.”

The closure will affect 27 people and the Velva facility will officially close October 27.

The Hershey Company bought Dot’s Pretzels and a pretzel manufacturing company in November 2021 in a $1.2 billion deal.

Created more than a decade ago in North Dakota by founder Dot Henke in her home kitchen, Dot’s Pretzels started as a special family snack shared with family, friends and neighbors primarily during North Dakota winters.