Modesto commercial bakery expands

 MODESTO

 March 27, 2014 10:53am 

•  Flowers Baking adds production line, hires 100 more workers

•  “Things have certainly been busy”

 Flowers Baking Co. of Modesto, a subsidiary of Flowers Foods (NYSE: FLO) of Thomasville, Ga., says Thursday that it has completed an expansion of its bakery at 736 Mariposa Road that has added approximately 100 jobs.

The expansion involved installation of a new high-speed bread line and the addition of sales and distribution functions at the bakery to sell Nature’s Own, Wonder, Home Pride, and Sara Lee breads and buns throughout Northern California.

Flowers Foods acquired the Modesto bakery’s assets, which included one bun line, in July 2013. At that time, the bakery was producing buns for foodservice customers in California and had about 70 people on its payroll.

Following the acquisition, the bakery added Nature’s Own and Sara Lee buns to its production lineup, and began work on the expansion, adding 150,000 square feet to its leased space and installing a state-of-the-art production line capable of producing more than 10,000 loaves of bread an hour. Total cost of the expansion was approximately $18 million.

“Since the bakery became a part of Flowers Foods eight months ago, things have certainly been busy,” says Paul Holshouser, bakery president. “The transition following the acquisition went smoothly. We were able to retain all jobs and quickly started producing our branded buns for California customers.”

Mr. Holshouser says the expansion and new sales and distribution functions have created approximately 100 additional jobs. More positions could be added if market demand for the breads requires adding a second production shift.

“This expansion offers great opportunities for our team members as does being part of one of the largest baking companies in the country,” he says.

“Flowers is one of the largest U.S. baking companies, and for them to make a sizable investment in Stanislaus County speaks volumes about how our county continues to be strategically important to the food processing industry,” says David White, chief executive officer of the Stanislaus Economic Development and Workforce Alliance. “The most important news is that Flowers has added 100 new jobs that will help 100 families enjoy a greater quality of life.”

The Modesto bakery was acquired last July as part of a larger acquisition from Old HB, Inc. (formerly Hostess Brands) of bread assets, including 20 bakeries; the Wonder, Merita, Home Pride, Butternut, and Nature's Pride brands; and 36 depots. The adjusted purchase price was $355 million.

Flowers has completed more than 100 acquisitions since listing publicly in 1968, including 12 in the past decade.

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