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Honey Bun begins work on warehouse

Wednesday, September 20, 2017

Baking company Honey Bun Ltd has started work on phase one of its expanded baking and warehousing facility in Cross Roads, Kingston.

The construction, which began in the third quarter of Honey Bun's financial year, represents an approximate US$1-million investment aimed at increasing output and efficiencies.

The baking company anticipates increased productivity in its upcoming financial year which begins October 1, and is setting resources in place for same. The structure is being funded through a combination of equity and debt and should be completed by December 2017, in time for the busy Christmas period.

“This is our 35th year of operation and, as a Jamaican-owned company, we always strive to build the business and in turn, build Jamaica. This investment demonstrates focus on attaining our vision of becoming the leading provider of high-quality baked and snack products globally,” executive chairman and co-founder of Honey Bun, Herbert Chong said.

“This building aims to satisfy the needs of our customers while increasing competitiveness in the baking industry.”

Honey Bun, which distributes baked goods across Jamaica, plans to invest in equipment and technology for phase two of the construction. Once the structure is completed, the baking company anticipates its current production capacity will be doubled, while its foothold in international markets will be increased.

Honey Bun acquired land adjoining their Cross roads facility in 2015, and a year later announced plans to expand its current structure.

“Last year we became Jamaica's first HACCP-certified bakery, but that was just the beginning for us. We believe in continuous improvement and this means not just our facility but our team as well. We have made significant strides in fortifying our skills and our business structure, in the same way that we are upgrading our infrastructure,” CEO Michelle Chong explained.

Honey Bun produced sales of $1 billion last year and sees this investment as part of an overall strategy to increase distribution and boost market penetration.

Chong noted that the expansion will see greater automation and efficiency from new factory and equipment.