LENEXA, Kan. — Hostess Brands is investing $120 million to $140 million to transform an idle factory in Arkadelphia, Ark., into a bakery with the goal to be operational by the second half of 2023. The bakery will increase the company’s capacity for its Donettes and cake platforms by approximately 20%.
“We’ve been profitably gaining market share across the snacking categories in which we compete,” said Andy Callahan, president and chief executive officer of Hostess Brands. “The addition of this new bakery signals our confidence that we expect the growth we have demonstrated over the last several years to continue.”
Hostess, based in Kansas City, Mo., will create 150 new jobs with its new facility over the next three years. Converting an existing factory will reduce the company’s costs for the new bakery and minimize environmental impacts.
“We are emphasizing a sustainability-first approach to this project while leveraging best practices from across our network of bakeries, and we anticipate this bakery will be our most efficient and greenest operation yet,” said Callahan. “We look forward to welcoming new team members to our newest bakery when it becomes operational in 2023 and to becoming a part of the Arkadelphia community.”
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