Hostess Brands Inc. has acquired a new facility in Arkadelphia with plans to transform it into a “bakery of the future,” according to company and Food Business News reports.
During the company’s Investor Day event on March 1, Hostess Chief Growth Officer Daniel J. O’Leary announced the company will invest between $120 million and $140 million in the 330,000-SF Arkansas plant. He said acquiring an existing facility for conversion represented Hostess’ lowest cost option, as well as the most sustainable one.
O’Leary reported the expansion into Arkadelphia would unlock approximately 20 percent capacity across the company’s cake and Donette platforms, and is expected to support Hostess’ growth algorithm through 2028 based on current demand projections. “It will also enable continued innovation across our portfolio and provide the necessary space to support additional production lines in the future as we continue to grow beyond 2028,” he added.
“We could not be more excited about this investment and our growth. We are grateful to have made this investment in conjunction with the support of our state and local partners in Arkansas,” O’Leary stated. “We look forward to welcoming the new team members who will join our company when the bakery is operational in 2023.”
Hostess Brands is headquartered in Kansas City and currently has four other offices located throughout the U.S. in Chicago; Columbus, Ga; Emporia, Kansas; and Indianapolis.
Arkadelphia is located in Clark County. Its population was 10,714 as of the 2010 Census. Design and construction of the facility is in progress, and officials expect it to be operational in late 2023.