FOOD PROCESSING
Cereal Numbers Rising for Firms
Minneapolis-based Malt-O-Meal Co. is the fifth largest cereal
maker in the U.S. and is the fastest growing company in that sector,
according to an ACNielsen survey. Helping keep its pipeline full of
product is the company's new plant in Tremonton, Utah. The 225,000-sq.-ft.
(20,900-sq.-m.) facility, the company's third, opened in January 2004
to serve Malt-O-Meal's West Coast markets, which are growing fast since
the acquisition of Quaker's bag cereal business in December 2002.
Business is so good for Malt-O-Meal that in September 2004 it announced it would add a third production line at the site. There's plenty of room for more expansion at the 105-acre (42.5 hectare) site. Company officials say there's space for more buildings and up to nine production lines. Cereal manufacturers are also expanding in Mexico. Kellogg Co. is building a plant in Toluca in the State of Mexico. Kellogg also has a facility in Queretaro that was established in 1951, and a plant in Linares. With sugar increasingly falling out of favor in a health-conscious populace, consumers are reaching for something else to put on their cereal of late and that's sweet news for British food ingredient manufacturer Tate & Lyle. The company continues to grow its business, partly fueled by the success of its no-calorie sweetener Splenda. Tate & Lyle and McNeil Nutritionals developed the sucralose product and in April 2004 Tate & Lyle became the sole manufacturer when it acquired McNeil's plant in McIntosh, Ala. McNeil retains ownership of the Splenda brand. Shortly after the acquisition, Tate & Lyle announced a major expansion at the site and later increased it to an investment of $75 million. "We have experienced exciting growth in demand for Splenda across all food and beverage categories and this has driven our decision to invest in increased plant capacity at Alabama," says Ferne Hudson, Tate & Lyle spokeswoman. "We have an experienced team at McIntosh and consequently we have committed to a significant expansion. Alabama has provided a climate attractive to manufacturing in a time of overall decline in industry. Taxes, environmental permitting cooperation, and outstanding support from the town of McIntosh and Washington County have made operation and expansion a seamless exercise." |
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