B&G investing in facilities for seasonings, Ortega brand

Food manufacturer B&G Foods Inc. is investing in existing facilities to increase production of some of its sought-after products, Chief Executive Officer Kenneth Keller announced on a Nov. 4 earnings call.

For spices and seasonings, Keller said the company added a new high-tech automated line at its plant in Ankeny, Iowa. And to step up production of Ortega taco sauces and shells, B&G Foods is adding new lines in Hurlock, Md., and Yadkinville, N.C.

Net sales of Ortega in the quarter ending Sept. 30 were $37.6 million, representing an increase of $1.6 million, or 4.2%, compared to the third quarter of 2020, and an increase of $2.6 million, or 7.3%, when compared to the third quarter of the prior year, according to said Chief Financial Officer and Executive Vice President of Finance Bruce Wacha.

“If we had unlimited manufacturing capacity, net sales growth for Ortega would have been even higher. Demand for our Ortega taco sauce, taco shells, taco seasonings and salsa remained very strong … This is a category and a brand that we will continue to invest in, and where we believe that our recently added capacity for sauce, shells and seasonings will lead to increased performance in 2022,” Wacha said.

In the realm of spices and seasonings, net sales were approximately $92.9 million, representing just shy of 20% of the company’s total net sales for the quarter. Net sales of spices and seasonings were down by approximately $14 million, or 13.1%, compared to Q3 2020, but supply chain was to blame.

“The shortfall is driven primarily by capacity constraints as demand outran our supply and manufacturing capacity. While this phenomenon is getting better, and we expect will be alleviated in part by some additional capacity that we have coming on in the fourth quarter of this year or in early 2022, we are also lapping a massive quarter for spices and seasonings in last year’s third quarter,” he said. “When comparing Q3 2019, net sales of spices and seasonings were quite strong and increased by approximately $10.3 million, or 12.5%.”