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Bimbo Bakeries to tighten grip on Northeast US with Pennsylvanian plant

By Kacey Culliney , 11-Jan-2013
Last updated on 11-Jan-2013 at 13:08 GMT

New Pennsylvanian plant will strengthen Northeast presence further
New Pennsylvanian plant will strengthen Northeast presence further

Bimbo Bakeries has splurged out $75m on land to build a bakery plant in Pennsylvania as it continues to invest heavily in securing a stronger grip on the Northeast region of the US.

The latest investment from the Sara Lee brand owner marks an addition to its recent activity to up its distribution network across the region.

The US subsidiary of Mexican bread titan Grupo Bimbo has purchased 30 acres of land in Macungie Township, Pennsylvania and is set to begin construction within a few months.

The 240,000 square foot LEED certified bakery will produce bread and buns for the Northeast region of the US and is set to be completed by the end of 2013.

“Our new bakeries use less energy, are friendlier to the environment, allow more efficient production and help us maintain the highest quality standards. These innovations allow us to offer consumers the best value when they purchase our products,” Bimbo said in a statement.

“This new facility will enable us to continue to serve our valued customers with the highest quality and freshest baked goods while leveraging significant advances in baking technology that will make our operations more efficient,” it continued.

The expansion trail…

Grupo Bimbo bought out US Sara Lee operations in 2011 for $959m and at the time pledged a $1bn investment in manufacturing facilities across the country over five years, until 2016.

Gary Prince, president of Bimbo Bakeries USA (BBU), said it would involve new builds and refurbishment of existing sites.

Bimbo’s aim was to operate 75 bakeries across 31 states to serve the entire US market, which according to its site, it is now close to with ‘more than 70’ operations.

Back in April 2012 Bimbo commenced its hefty US expansion strategy, initially focus on distribution networks. It stretched distribution into Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. It also widened the existing distribution network of Sara Lee brands in the Mid-Atlantic region.

Its latest $75m investment to construct a production plant will strengthen its hold across the Northeast beyond just distribution.

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