ARYZTA has expanded production capacity at a frozen bread plant in Canada, a move the Swiss-Irish bakery business said would support its “long-term growth plans”.
The new production line at the plant in the town of Ancaster, Ontario, adds to nine existing lines at the facility, and will see the factory expand its offering into frozen breads, rolls and buns. It currently produces breakfast and sweet baked goods for foodservice and retail channels under the Oakrun Farm Bakery and Otis Spunkmeyer brands, as well as for private-label customers.
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While the new line will initially service customers in Canada, the capacity increase will enable Aryzta to expand supply throughout North America, it said in a statement. No details of the investment in the plant were revealed.
North America has been a challenging market for Aryzta for some time, especially in the US. Chief executive Kevin Toland said recently the rise of private-label in the US had been one of the hurdles it faced in a “competitive retail environment”.
Around 40% of Aryzta’s group revenues are generated in North America and 32% of EBITDA profits.
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Deb Cochrane, the president of Aryzta Canada, commented on the expansion: “The Ancaster bakery is key to our long-term growth plans. With this efficient new line, we are investing to diversify our offerings, build sustainability, and most importantly, be a stronger and more cost-competitive partner to our customers.”
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By GlobalDataThe new production line is operated by 48 Aryzta employees, and when fully operational is expected to run 24 hours a day, five days a week.
