Dive Brief:
- J&J Snack Foods is adding new production lines to support its plans to expand product offerings, CEO Dan Fachner announced on a recent earnings call.
- The snack maker is adding seven production lines, including three focused on expanded pretzel manufacturing. The company also added two production lines to support its frozen novelties products, as well as a churro line.
- The operational expansions come as the company works to integrate new products to into its portfolio, including Dippin' Dots, which it acquired last year, and its rebranded churro portfolio Hola! Churros, set to hit the market later this year.
Dive Insight:
The move to expand production lines are in response to what Fachner said was J&J Snack Food's need to expand outside its core product offerings, including churros, pretzels and frozen novelties. Added manufacturing capacity means new chances to sell innovative products.
"And so, we have addressed that to be able to have enough capacity to get our sales team back out there and really selling new lines and new opportunities," the CEO told investors.
J&J Snack Foods has been working to expand its operational footprint across its supply chain in recent months.
The food manufacturer is adding three new distribution centers this year and next in an attempt to simplify its logistics network.
It also outsourced its logistics and distribution management to logistics provider NFI and implemented its new ERP system.
