Hostess Brands plans to spend up to $140 million to convert a recently purchased facility in Arkansas into “the bakery of the future.”
The 330,000-sq.-ft. facility in Arkadelphia, Ark., should be operational by mid-2023, Hostess says. A company executive said at a recent investors’ presentation that when fully operational, the plant will increase Hostess’s capacity for cake product production by 20%. That should be enough to sustain sales growth through 2028, he said.
Hostess bought an existing facility because it was a cheaper and more sustainable option than building, company executives said. A presentation from Hostess referred to “remodeling with ESG [environmental, social and governance] Values in mind.”
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