US-based consumer packaged goods firm Verus International is due to open its first manufacturing plant located in Houston, Texas.
Verus describes itself as an “emerging multi-line consumer packaged goods company” that will eventually develop branded products for North and South America and the Middle East. It is headquartered in Maryland.
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The new 10,000 square-foot facility will operate as a subsidiary under the name Success Labs and has been “designed to provide flexibility to manufacture and package a variety of wet and dry consumer goods”, according to a statement.
Currently, the company, also known as Versus Foods, distributes products sourced in the US from local manufacturers including candy, ice cream, meat and poultry, vegetables, french fries, condiments and ingredients.
A company spokesperson told just-food the plant will initially produce branded gummy candies for Major League Baseball (MLB) under exclusive contracts and which will be sold through distributors and convenience stores. It also plans to expand into “national chains” next year.
Verus has not previously manufactured any of its products, the spokesperson confirmed, adding the “goal for the plant is to have the ability to make high-value products for both existing lines (candy) and in nutraceuticals and other unique product categories”.
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By GlobalDataChief executive Anshu Bhatnagar said: “Success Labs represents a major milestone for our company and is part of our goal to become more vertically integrated when in-house processing makes sense. Surprisingly enough, world-wide gummi production capacity is currently strained, so this is partly a strategic move.”
The Houston plant is expected to be operational early in the New Year and has the capacity for expansion to meet the company’s aspirations for exports. Verus said it anticipates the facility will initially generate monthly revenues of around US$2-3m, “depending upon the mix of new products planned for 2020”.
Bhatnagar added. “A key feature of owning our own manufacturing facility is that we can now develop and launch high-value lines where we need a higher degree of control, so this facility will accelerate our new product initiatives. Our goal has always been to have Verus brands on multiple retailer shelves. Success Labs is going to bring a number of products to market much earlier, so we are excited to make this long-awaited move into manufacturing a reality.”
