LENEXA, Kan., March 7, 2022 /PRNewswire/ -- Hostess
Brands, Inc. (NASDAQ: TWNK), a leading sweet snacks company, has
announced that it will convert an idled factory in Arkadelphia, Ark., into a state-of-the-art
bakery. The bakery is expected to be operational in the second half
of 2023 and bring approximately 150 new jobs to the community over
the next three years.
Hostess Brands, whose iconic snack foods include
Donettes®, Twinkies®, CupCakes and Ding
Dongs®, as well as Voortman® cookies and
wafers, plans to invest $120 million
to $140 million to transform the
330,000-square-foot facility in Arkadelphia into a next-generation bakery. The
new bakery will increase the company's capacity across its bakeries
on its Donettes and cake platforms by approximately 20%. It will
also enable the company to accommodate production growth in the
future.
"We've been profitably gaining market share across the snacking
categories in which we compete," said Andy
Callahan, president and chief executive officer of Hostess
Brands. "The addition of this new bakery signals our confidence
that we expect the growth we have demonstrated over the last
several years to continue."
Hostess Brands' decision to renovate an existing building will
reduce the company's costs for the new bakery as well as minimize
environmental impacts.
"We are emphasizing a sustainability-first approach to this
project while leveraging best practices from across our network of
bakeries and we anticipate this bakery will be our most efficient
and greenest operation yet," said Callahan. "We are grateful for
the help and support that we received from the city of Arkadelphia and the Arkadelphia Alliance,
Clark County, the state of
Arkansas and the Arkansas Economic
Development Commission, and the partnerships we have entered into
with these entities. We look forward to welcoming new team members
to our newest bakery when it becomes operational in 2023 and to
becoming a part of the Arkadelphia
community."
"I could not be more excited to welcome Hostess to the
Arkansas family of businesses,"
said Governor Asa Hutchinson.
"Arkansans of all ages have enjoyed Hostess products for more than
a century, so it is no wonder they are now a leading snack company.
The company's selection of Clark
County speaks volumes about the confidence they have in the
area's business climate and workforce, and I am confident Hostess
will find success in Arkansas."
"This is a huge win for Arkadelphia, Clark
County and the entire state," said Secretary of Commerce
Mike Preston. "Hostess is going to
build a bakery of the future in Arkansas by transforming this site into a
facility focused on sustainable design and practices. In addition,
the Hostess facility will create 150 new jobs in south Arkansas that will have a lasting impact on
the local economy."
"Clark County will continue to
attract high-quality businesses such as Hostess Brands and provide
them with the resources they need to invest, create jobs and
produce premium products," said J.L. Griffin, CEO of Arkadelphia
Alliance. "We are thrilled to begin a long-term partnership with
Hostess Brands to bring further opportunities."
About Hostess Brands, Inc.
Hostess Brands, Inc.
(NASDAQ: TWNK) is a leading sweet snacks company focused on
developing, manufacturing, marketing, selling and distributing
products in North America under
the Hostess® and Voortman® brands. The
company produces a variety of new and classic treats, including
iconic Hostess® Donettes®,
Twinkies®, CupCakes, Ding Dongs® and
Zingers®, as well as a variety of Voortman®
cookies and wafers. For more information about Hostess Brands,
please visit hostessbrands.com.
Forward-Looking Statements
This press release contains
statements reflecting our views about the future performance of the
company that constitute "forward-looking statements" that involve
substantial risks and uncertainties. Forward-looking statements are
generally identified through the inclusion of words such as
"believes," "expects," "intends," "estimates," "projects,"
"anticipates," "will," "plan," "may," "should" or similar language.
Statements addressing our future operating performance and
statements addressing events and developments that we expect or
anticipate will occur are also considered forward-looking
statements. All forward-looking statements included herein are made
only as of the date hereof. We undertake no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
As a result of a number of known and unknown risks and
uncertainties, the company's actual results or performance may be
materially different from those expressed or implied by these
forward-looking statements. Risks and uncertainties are identified
and discussed in Item 1A-Risk Factors in the company's annual
report on Form 10-K for 2021 filed on March
1, 2022. All subsequent written or oral forward-looking
statements attributable to us or persons acting on the company's
behalf are expressly qualified in their entirety by these risk
factors.
Investor contact
Amit
Sharma
816-701-4662
asharma@hostessbrands.com
Media contact
Lauren
Bettenga
952-797-6839
lauren.bettenga@clynch.com
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SOURCE Hostess Brands