Winchester-based dairy processor plans $83.5 million expansion

HP Hood LLC, will invest more than $83.5 million to expand its dairy processing operations in the Winchester area of Frederick County.

According to an announcement from the office of Gov, Glenn Youngkin, the expansion includes upgrades to production and packaging equipment and construction of additional cooler and warehouse space.

The project will enable the company to further grow its business while continuing to provide a local market for Virginia dairy farms through its milk cooperative network which includes the Dairy Farmers of America and the Maryland & Virginia Milk Producers Cooperative Association.

“I commend HP Hood for their continued investment in Frederick County and in Virginia’s dairy industry, the state’s fourth largest sector in the agriculture industry,” said Governor Glenn Youngkin. “Supporting companies like HP Hood is vitally important to Virginia’s dairy producers and spurs economic development in this area of the Commonwealth.”

“I am pleased that the Commonwealth will continue its partnership with Frederick County and HP Hood to increase market opportunities for Virginia dairy producers. This announcement is certainly a win-win for Frederick County, the state’s dairy producers and Virginia agriculture,” said Secretary of Agriculture and Forestry Matthew Lohr.

Hood’s Winchester facility, which was constructed in 2000, employs 600+ people and processes extended-shelf-life fluid milk and nondairy products for Hood’s own brands, private label partners, licensed brands and co-packing partners.

The $83 million facility expansion will provide increased production capacity that is critical to the company’s operations and fund technology that will enable Hood to produce new products in response to growing customer demand.

Gary Kaneb, President and CEO of HP Hood, said “This expansion enables us to continue to grow Hood’s business and accommodate the everchanging needs of our customers and continue to provide a market for local dairy farms through our local milk cooperative network.”

“As a lifelong dairy farmer in the Shenandoah Valley, I’m excited to see this level of investment in dairy processing in the Commonwealth. I welcome HP Hood’s investment in the community and look forward to growing Virginia’s dairy supply to meet their needs,” said Senator Timmy French.

Founded in 1846 in Charlestown, Massachusetts as a milk delivery service, HP Hood is a nationally branded dairy processor with more than 3,000 employees and annual sales revenues of approx. $3.5 billion. The company manufactures conventional, extended-shelf life (ESL) and shelf stable dairy and non-dairy beverages cultured products, as well as ice cream and frozen desserts.