The Erin Foods plant in Thurles, Co Tipperary, is to close in June of next year with the loss of all 95 jobs.
Erin's parent company, Premier Foods, took the decision after reviewing its operations in Ireland and Britain.
The company plans to consolidate the production of several of its key brands in attempt to cut costs.
Premier Foods said it would soon begin talks with workers in the Thurles plant on redundancy payments, and that the jobs would be phased out between now and next summer.
The future of the Thurles plant has been in jeopardy for some time after Premier purchased the RHM group, which sells the Sharwoods, Saxa and Bisto brands, earlier this year.
The Competition Authority had insisted that Premier sell Erin as the purchase of RHM gave it dominance in the gravy market.
Fine Gael's Tipperary North TD Noel Coonan said the news has "sent shock waves" through the area.
"My sincere sympathy goes out to the 95 of committed employees and their families. News on this scale is never welcome and even more difficult to cope with at this time of year, as we approach Christmas," he said.
"The Government has failed the people of Thurles and at the eleventh hour made no effort to intervene and reverse this decision.
"A total review of Government policy is urgently required. Thurles has lost over 1,000 jobs in the past decade and none of those jobs has been replaced.With this closure, the manufacturing base in Thurles has totally gone and it is with great regret the way the loyal employees of Erin Foods have been treated."