J.M. Smucker plans to spend $120 million to expand production at its Hostess manufacturing plant in Columbus, Georgia.
The investment will go toward the construction of a new building, renovation of certain areas of the facility and new equipment, according to Pace Halter, chairman of Choose Columbus, the city’s economic development group.
Construction to support the expanded capacity has begun and is expected to be completed by early 2027. The food giant said the investment will create at least 48 new jobs.
“We are pleased to have this opportunity to expand production at our Columbus, Georgia, manufacturing facility to continue to meet the needs of our consumers,” Beaux Williamson, facility manager for J.M. Smucker, said in a statement.
Hostess, which makes Twinkies, Donettes and Ho Hos, was purchased by Smucker two years ago for $5.6 billion to help build the jam maker’s presence in indulgent snacking and add more consumer occasions focused on convenience.
But since then, inflation, economic uncertainty and the growing use of appetite-suppressing GLP-1 drugs have weighed on the brand.
Barron’s noted that Smucker has taken nearly $2 billion in write-downs related to its Hostess investment. The company told Wall Street in September that it reduced Hostess’ SKU count by 25% to help stabilize the brand and better position it for growth.
Similar to other food and beverage companies, Smucker has been opening, expanding and closing facilities to meet demand for its products and improve the efficiency of its supply chain.
In May, Smucker said it would close and pursue a sale of a Hostess manufacturing plant in Indianapolis by early 2026. It also spent an estimated $1.1 billion to open a third plant dedicated to manufacturing its fast-growing Uncrustables brand last year.
