JM Smucker to spend over $120M on Hostess plant expansion

J.M. Smucker plans to spend $120 million to develop manufacturing at its Hostess manufacturing plant in Columbus, Georgia.

The funding will go towards the development of a brand new constructing, renovation of sure areas of the ability and new tools, in accordance with Tempo Halter, chairman of Select Columbus, the town’s financial growth group. 

Development to help the expanded capability has begun and is predicted to be accomplished by early 2027. The meals big mentioned the funding will create not less than 48 new jobs.

“We’re happy to have this chance to develop manufacturing at our Columbus, Georgia, manufacturing facility to proceed to fulfill the wants of our shoppers,” Beaux Williamson, facility supervisor for J.M. Smucker, mentioned in a press release.

Hostess, which makes Twinkies, Donettes and Ho Hos, was purchased by Smucker two years ago for $5.6 billion to assist construct the jam maker’s presence in indulgent snacking and add extra shopper events centered on comfort.

However since then, inflation, financial uncertainty and the rising use of appetite-suppressing GLP-1 medication have weighed on the model. 

Barron’s famous that Smucker has taken nearly $2 billion in write-downs associated to its Hostess funding. The corporate told Wall Street in September that it lowered Hostess’ SKU rely by 25% to assist stabilize the model and higher place it for development.

Just like different meals and beverage firms, Smucker has been opening, increasing and shutting services to fulfill demand for its merchandise and enhance the effectivity of its provide chain. 

In Might, Smucker mentioned it could close and pursue a sale of a Hostess manufacturing plant in Indianapolis by early 2026. It additionally spent an estimated $1.1 billion to open a third plant devoted to manufacturing its fast-growing Uncrustables model final yr.