CANDY'S TORTILLA FACTORY BEGINS 8,000-SQUARE-FOOT PLANT EXPANSION
CANDY'S TORTILLA FACTORY BEGINS
8,000-SQUARE-FOOT PLANT EXPANSION
PUEBLO, Colo., Nov. 19 /PRNewswire/ -- Candy's Tortilla Factory Inc. (NASDAQ: CNDY) announced today it has begun construction on a plant addition that will make room for additional flour tortilla capacity in its Pueblo production facility. The cost of this addition is estimated at approxiately $400,000. The construction, which represents the first stage in an 18-month project, is expected to be completed in late 1991. Candy's expects the 8,000-square-foot expansion to begin contributing to increased productivity and decreased costs as early as the end of the second quarter 1992. The construction of the first stage will be funded through a combination of proceeds from the company's public offering and borrowing.
Upon completion of the addition, Candy's will move its corn processing operation into this new building and install additional flour tortilla production lines into the space currently occupied by the corn tortilla lines. Based on the plans and specifications of the expansion, these changes are expected to add approximately 6 million pounds per year to flour tortilla production capacity levels, a 25 percent increase compared to current levels. The company purchases (co-packs) approximately 30 percent of its flour tortilla product from outside suppliers. "We expect completion of this phase, and the corresponding reduction in the company's co- packing expenses, to contribute to production cost savings of approximately $.10 per pound on the flour tortillas that are produced rather than purchased." said Anthony Estrada, president of Candy's.
Based in Pueblo, Candy's Tortilla Factory Inc. manufactures, markets and distributes a premium quality line of flour and corn tortillas, taco shells and tortilla chips, packaged and marketed under its own labels and various private labels to the retail, institutional and food service markets. Retail customers include Safeway, Kroger and Albertson's. Food service customers include Kraft, Lady Baltimore and Sysco. Candy's institutional customers include Taco Bell and McDonald's.
/CONTACT: Tom Carpenter, CFO of Candy's Tortilla Factory Inc., 719-543-4350; or Mark Trinske of Carl Thompson Associates, 303-494-5472, for Candy's Tortilla Factory/
(CNDY) CO: Candy's Tortilla Factory Inc. ST: Colorado IN: SU: CH -- DV005 -- 4894 11/19/91 11:07 EST