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May 2, 2019

McCain Foods invests $300m to expand Washington plant

Canada-based frozen food firm McCain Foods is investing US$300m to expand a processing facility in the US. 

By Dean Best

Canada-based frozen food firm McCain Foods is investing US$300m to expand a processing facility in the US in a boon to local potato growers.

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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.
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Privately-owned McCain, which is considered the world’s largest producer of frozen French fries, said in a statement the investment funds will be funnelled into a 170,000 sq ft expansion to the potato processing facility which is located in Othello, Washington,

The company anticipates it will add 180 new jobs as the project “significantly” increases its North American production capacity. 

Construction work is due to begin this month and is expected to be completed early in 2021, with the company taking measures to ensure environmental efficiencies and a reduction in its carbon footprint.

McCain said it will require an additional 11,000 acres for potato growing that will be sourced from local suppliers.

In February, the company said it was eyeing a new site in the US city of Caldwell in Idaho, after announcing plans to close a plant in Colton, California, with the loss of 100 jobs. And last year, its subsidiary, Great American Snacks, shut a facility in Monroe, North Carolina.

However, in 2017 McCain expanded production at its French fry plant in Coaldale, Canada, as part of a strategy to meet increasing demand in global markets.  

Jeff DeLapp, McCain’s president of the North America division, said of the Washington project. “This investment signals confidence in Washington, its potato-growing community and its skilled workforce availability. It quickly follows other McCain capacity investments, helping to meet the continued increasing demand for McCain products and builds toward a strong, sustainable future in manufacturing and agriculture.”  

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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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