MGP to Build New $16.7 Million Extrusion Plant Inside Recently Acquired Production Facility

Rhea-AI Summary

MGP Ingredients (Nasdaq: MGPI) announced the construction of a new $16.7 million extrusion plant in Atchison, Kansas, to enhance in-house production of its ProTerra line of texturized proteins. Scheduled for completion by late 2023, the facility aims to produce up to 10 million pounds per year, addressing increasing demand and reducing reliance on co-packers. The plant's design is by 1 Solutions Group, which has partnered with MGP on previous projects. This investment is seen as a strategic move to gain more control over manufacturing and improve operational flexibility.

Positive

• New facility represents a $16.7 million investment to enhance in-house production capabilities.
• Expected production capacity of 10 million pounds per year will meet growing demand for ProTerra products.
• Reduced reliance on co-packers will decrease lead times and increase flexibility in R&D and product commercialization.

Negative

• None.

ATCHISON, Kan., Feb. 22, 2022 /PRNewswire/ -- MGP Ingredients, Inc., (Nasdaq: MGPI) a leading provider of specialty proteins and starches, announced it will build a technologically advanced extrusion plant to produce its ProTerra line of texturized proteins. The new plant will be located adjacent to the company's existing Atchison, Kansas, plant. Once online in late 2023, the new extrusion plant is expected to produce up to 10 million pounds of ProTerra per year.

Design of the $16.7 million facility will be led by Sabetha, Kansas-based design firm 1 Solutions Group. The firm has extensive experience designing extrusion lines in the food industry (including texturized proteins) and has worked with MGP on previous extrusion projects. Construction on the new facility will begin this summer and will be completed by the end of 2023.

"Achieving in-house production of our ProTerra line of products is a meaningful investment amid growing demand and increasing outsourcing costs," said MGP CEO Dave Colo.

The new plant will help the company meet the growing demand for its ProTerra product line, while giving it more control over the manufacturing process. MGP currently utilizes co-packers to produce its ProTerra line.

"Building this new extrusion plant gives MGP the capacity and flexibility required to continue to meet the growing demand for our ProTerra line of texturized proteins," said Michael Buttshaw, MGP's Vice President of Ingredient Solutions Sales and R&D. "By transitioning the manufacturing process in-house, we reduce lead times related to co-packer scheduling issues, increase flexibility related to R&D projects and enhance our ability to effectively commercialize new products."

About MGP
MGP Ingredients, Inc. (Nasdaq: MGPI) is a leading producer of premium distilled spirits, branded spirits, and food ingredient solutions. Since 1941, we have combined our expertise and energy aimed at formulating excellence, bringing product ideas to life collaboratively with our customers.

As one of the largest distillers in the U.S., MGP's offerings include bourbon and rye whiskeys, gins, and vodkas, which are created at the intersection of science and imagination, for customers of all sizes, from crafts to multinational brands. With U.S. distilleries in Kentucky, Indiana, Kansas, and Washington D.C., and bottling operations in Missouri, Ohio, and Northern Ireland, MGP has the infrastructure and expertise to create on any scale.

MGP's branded spirits portfolio covers a wide spectrum of brands in every segment, including iconic brands from Luxco, which was founded in 1958 by the Lux Family. Luxco is a leading producer, supplier, importer and bottler of beverage alcohol products. Our branded spirits mission is to meet the needs and exceed the expectations of consumers, associates and business partners. Luxco's award-winning spirits portfolio includes well-known brands from five distilleries: Bardstown, Kentucky-based Lux Row Distillers, home of Ezra Brooks, Rebel, Blood Oath, David Nicholson and Daviess County; Lebanon, Kentucky-based Limestone Branch Distillery, maker of Yellowstone Kentucky Straight Bourbon Whiskey, Minor Case Straight Rye Whiskey and Bowling & Burch Gin; Jalisco, Mexico-based Destiladora González Lux, producer of 100% agave tequilas, El Mayor, Exotico and Dos Primos; Ross & Squibb Distillery in Lawrenceburg, Indiana, where the George Remus Straight Bourbon Whiskey and Rossville Union Straight Rye Whiskey are produced; and the Washington, D.C.-based Green Hat Distillery, producer of the Green Hat family of gins. The innovative and high-quality brand portfolio also includes Everclear Grain Alcohol, Pearl Vodka, Saint Brendan's Irish Cream, The Quiet Man Irish Whiskey and other well-recognized brands.

In addition, our Ingredient Solutions segment offers specialty proteins and starches that help customers harness the power of plants and provide a host of functional, nutritional and sensory benefits for a wide range of food products.

The transformation of American grain into something more is in the soul of our people, products, and history. We're devoted to unlocking the creative potential of this extraordinary resource. For more information, visit mgpingredients.com.

Cautionary Note Regarding Forward-Looking Statements

The forward-looking statements contained herein include, but are not limited to, statements about the Company's planned construction of an extrusion plant. Forward-looking statements are usually identified by or are associated with such words as "intend," "plan," "believe," "estimate," "expect," "anticipate," "hopeful," "should," "may," "will," "could," "encouraged," "opportunities," "potential," and/or the negatives or variations of these terms or similar terminology.

These forward-looking statements reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance, and Company financial results and financial condition and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. For further information on these and other risks and uncertainties that may affect our business, see Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. Any forward-looking statements made in this press release speak only as of the date of this release. Except as may be required by law, the Company does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.

Media Contact: Patrick Barry, 314.540.3865
patrick@byrnepr.net

Investor Contact: Mike Houston, 646.475.2998
investor.relations@mgpingredients.com

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SOURCE MGP Ingredients, Inc.

FAQ

What is the purpose of MGP Ingredients' new extrusion plant?

The new extrusion plant aims to enhance in-house production of the ProTerra line of texturized proteins, addressing growing demand.

When is the expected completion date for the new extrusion plant by MGP Ingredients?

The construction of the new extrusion plant is expected to be completed by late 2023.

How much is MGP Ingredients investing in the new extrusion plant?

MGP Ingredients is investing $16.7 million in the new extrusion plant.

What will be the annual production capacity of the new extrusion plant?

The new extrusion plant is expected to produce up to 10 million pounds of ProTerra per year.

Who designed the new extrusion plant for MGP Ingredients?

The new extrusion plant will be designed by 1 Solutions Group, a firm with experience in the food industry.