January 27, 2004

Ellen Qualls
(804) 786-2211, x2379

Lynne Bohan
HP Hood Inc.
(617) 887-8321
Jill Vaughan
(804) 371-0049
-Governor Warner announces milk processing company to invest $42.8 million-

RICHMOND - Governor Mark R. Warner today announced that HP Hood Inc. will expand its milk processing facility in Frederick County. Through a $42.8 million investment, the company will increase its capacity for existing products and enable the production of new, technologically-advanced products. The expansion will create 65 new jobs in a variety of skilled labor positions. Virginia successfully competed with locations further north and west for the project.

“HP Hood is a valuable part of Virginia’s food processing industry, which employs more than 37,000 workers across the Commonwealth,” said Governor Warner. “I am pleased to announce this significant expansion and 65 new jobs for Frederick County.”

Headquartered in Chelsea, Massachusetts, HP Hood is one of the largest branded dairy operators in the United States with annual sales of approximately $1 billion. In its traditional home territory of New England, Hood lines of milk, creams, ice cream, cottage cheese and sour cream regularly rank number one in the six-state area. Hood has national and super regional processing and distribution operations in extended-shelf-life products found under brands licensed to Hood. These brands include LACTAID®, Nesquik®, Carnation Coffee-Mate®, Land O' Lakes®, Horizon®, and Organic Cow®. Each of these also ranks number one in their respective categories.

HP Hood’s Frederick County facility manufactures extended shelf-life beverages using state-of-the-art, ultra-high temperature (UHT) manufacturing with current and emerging packaging technologies. The plant supports both Hood brand business as well as products produced for national brand partners. The Frederick County plant is one of the largest UHT facilities in North America.

“We are grateful to Governor Warner for his support as well as the support of the Virginia Economic Development Partnership, Frederick County and the Winchester-Frederick County Economic Development Commission,” said John A. Kaneb, Chairman, President and CEO of HP Hood. “This investment will allow us to expand our production and packaging capabilities and enable us to meet the needs of our customers.”

Governor Warner approved a $500,000 performance-based grant from the Virginia Investment Partnership (VIP) program. The VIP program offers financial assistance to existing Virginia companies proposing significant expansion projects. The Virginia Economic Development Partnership, Frederick County and the Winchester-Frederick County Economic Development Commission assisted HP Hood with its decision. The Virginia Department of Business Assistance will provide workforce training services.

“Hood’s decision reinforces Frederick County’s proven track record of commitment to business,” said Richard Shickle, Chairman of the Frederick County Board of Supervisors. “This track record includes welcoming new quality companies, but more importantly stresses providing continued resources and assistance to secure their future.”


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