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.

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.

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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.