SunOpta to boost plant-based production capacity with new investment

SunOpta has announced an investment in its Allentown, Pennsylvania plant in the US, as it looks to expand its plant-based manufacturing capacity. 

In addition, the company has announced the closure of its frozen fruit processing plant in Santa Maria, California, effective immediately.

SunOpta says that the rejigging of its manufacturing capabilities is part of a supply chain optimisation strategy to support its growth plans.

Last year, the company announced the sale of its global ingredients business, saying that a portion of the proceeds would be used for capital investment into its plant-based foods and beverages segment.

“I’m pleased to announce the further expansion of our plant-based foods and beverages production capacity,” said Joe Ennen, CEO of SunOpta.

“This project, in our Allentown, Pennsylvania plant, follows the completion of three large projects in the fourth quarter of 2020 to accelerate the growth of our plant-based business. We expect this new capacity to come online in the fourth quarter of 2021.”

Commenting on the closure of the Santa Maria plant, Ennen said: “This closure will reduce the cost basis in our frozen fruit business, while leaving ongoing relationships with growers intact and ensuring adequate capacity to service demand for years to come.

“The highly successful automation and productivity efforts made over the last two seasons have created the ability for us to operate the same size business, with fewer assets.”

Ennen added: “…given the plant closure, we are using this as a catalyst to evaluate marginally profitable or unprofitable customers and SKUs, which may lead to some customer and SKU rationalisation.”

SunOpta is a food and beverage company offering co-manufacturing, private label, ingredient and foodservice solutions, as well as a number of consumer brands.

Last year, the company launched a new range of organic fruit bars, in a move to expand into the ‘multi-billion-dollar’ snack bar segment.