By Liz Moyer
Investing.com — Food companies are taking a lesson from the supply chain issues of the pandemic and investing in new and bigger factories to make everything from pizza rolls to coffee creamer despite inflation.
This week, General Mills Inc (NYSE:) said it would spend $100 million on its Ohio factory where Totino’s pizza and pizza rolls are made. The move is being done together with JobsOhio, Ohio Southeast Economic Development, Ohio Department of Development, and the Jackson County Economic Development Partnership, and will raise employment at the factory to 1,000 people.
Goldman has raised its price target on General Mills to $64 from $63, while keeping a sell rating.
Earlier this year, Nestle SA (SIX:) unveiled plans to invest $675 million in an Arizona facility to make its Coffee mate creamer, and PepsiCo (NASDAQ:) Beverage North America is planning to open a new 1.2 million square foot bottling facility near Denver next year.
Last year, JM Smucker Company (NYSE:) earmarked more than $1 billion for a factory in Alabama, where it plans to make its Uncrustables sandwiches.
The investment in manufacturing comes as food makers face higher costs for ingredients and inflation-wary consumers.
Last week, Stifel raised its price target on Smucker to $148 from $140, while Bank of America raised its target to $160 from $155.
Shares of General Mills were flat on Wednesday and up 14% for the year so far. Nestle shares were also flat but down 4% year to date. Smucker shares are down 0.5% on Wednesday and up 3% for the year.