Kraft Heinz has completed a significant expansion of its Alfaro manufacturing plant in La Rioja, increasing the Spanish factory’s capacity by 50%.
The project, which began a year and a half ago, represents a €70 million investment over the last three years, the company added.
With new high-speed filling lines and an advanced pilot plant at the company’s Nijmegen R&D centre, the initiative aims to meet increasing demand for Heinz sauces across Europe.
This expansion positions the Alfaro plant as one of Kraft Heinz’s most efficient manufacturing sites in Europe, according to the company.
Spain’s role as a key production hub for Kraft Heinz underscores the strategic importance of the region in achieving the company’s long-term objective to lead the future of food.
The Reason Behind Expansion
Willem Brandt, president of European and Pacific developed markets for Kraft Heinz, noted that the Alfaro expansion is integral to the company’s vision of becoming Europe’s top sauces brand, both in retail and food service.
Brandt commented, “With increased capacity and new, cutting-edge technology, we'll be able to respond more readily to evolving culinary trends and tastes – including the demand for healthier versions of fan favourites, like Heinz mayonnaise.”
The expansion will also generate 39 new permanent jobs in La Rioja, further contributing to the local economy.
In addition to producing a wide range of Heinz sauces for local and European markets, the Alfaro plant processes approximately 25,000 tonnes of tomatoes annually for Kraft Heinz’s Orlando brand.
Last month, Kraft Heinz forecast annual profit below estimates and missed quarterly sales estimates, as the packaged food maker struggles with sluggish demand for its products such as Lunchables and packaged meat following price hikes.
