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 gear, in line with Tempo Halter, chairman of Select Columbus, the town’s financial growth group. 

Development to assist the expanded capability has begun and is predicted to be accomplished by early 2027. The meals big stated 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 customers,” Beaux Williamson, facility supervisor for J.M. Smucker, stated in an announcement.

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 client events targeted 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 diminished Hostess’ SKU rely by 25% to assist stabilize the model and higher place it for progress.

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

In Might, Smucker stated it might 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.