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January 10, 2020

Flowers Foods gears up Virginia plant for organic production

US-based bakery business Flowers Foods is investing in a facility in Virginia to convert the site to an organic plant.

By Dean Best

Flowers Foods, a US-based bakery business, plans to invest US$25m in a facility in Virginia to gear up the plant to manufacture organic bread products.

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  • Five-year forecasts and the impact of COVID-19
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  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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Situated in the city of Lynchburg, the site has been in the hands of New York-listed Flowers Foods for 40 odd years and will serve organic bread to the mid-Atlantic market once the conversion has been completed. Around 15 jobs are expected to be created from the project.

Brad Alexander, the chief operating officer of Flowers Foods, said: “This expansion represents a tremendous opportunity for us to meet the increasing demand for our Dave’s Killer Bread organic, non-GMO Project Verified breads. We chose to convert our Lynchburg bakery for a number of reasons, including its geographic location, access to key interstate highways, and the partnership we have with local and state agencies.”

As well as Dave’s Killer Bread, Georgia-headquartered Flowers Foods other brands include Nature’s Own, Tastykake and Wonder amonsgt others. The company operates 46 bakeries spread across 18 US states. In November, the company revealed it plans to review its portfolio and supply chain under an optimisation initiative launched by newly-installed chief executive Ryals McMullian, who was promoted from chief operating officer in May.

McMullian said at the time: “We’re undertaking a complete portfolio profitability review, along with the development of tools and capabilities that will allow us to make more informed strategic choices around things like assortment, pricing, distribution and innovation.”

The Virginia Economic Development Partnership worked with the City of Lynchburg and Lynchburg Regional Business Alliance to secure the project for Virginia. Governor Ralph Northam approved a $250,000 performance-based grant from the Virginia Investment Partnership programme, an incentive available to existing companies, to assist Lynchburg with the project. 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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