HP Hood LLC Embarks on Major Expansion in Frederick County with $83.5 Million Investment

In a significant development for Virginia’s dairy industry, Governor Glenn Youngkin has announced that HP Hood LLC will invest over $83.5 million to enhance its dairy processing facilities in Frederick County. This ambitious project marks a new chapter for the company and the state’s dairy sector, promising economic growth and technological advancements.

“HP Hood has played a vital role in Frederick County’s food manufacturing sector for more than 20 years, providing employment opportunities and contributing to our economic growth,” said Josh Ludwig, Chairman of the Frederick County Board of Supervisors. “We are grateful for their continued investment and confidence in our community.”

The investment aims to modernize production and packaging lines and add more space for coolers and warehouses. This expansion is not just a win for HP Hood but fortifies the local dairy market, ensuring continued support for Virginia’s dairy farms. The company’s cooperation with milk cooperative networks such as Dairy Farmers of America and the Maryland & Virginia Milk Producers Cooperative Association is a testament to its commitment to local producers.

Governor Youngkin lauded HP Hood’s decision, emphasizing the importance of such investments in driving economic development and supporting the dairy industry, a key sector in Virginia’s agriculture. Secretary of Agriculture and Forestry Matthew Lohr echoed these sentiments, highlighting the benefits for Frederick County, the state’s dairy producers, and Virginia’s agricultural landscape.

The expansion of Hood’s Winchester facility, established in 2000 and currently employing over 600 individuals, is a strategic move to meet increasing customer demand and introduce new products. Gary Kaneb, President and CEO of HP Hood, expressed gratitude for the support from Frederick County and Virginia, noting the expansion as a step towards accommodating the evolving market needs and reinforcing the company’s role in the local dairy ecosystem.

Josh Ludwig, Chairman of the Frederick County Board of Supervisors, acknowledged HP Hood’s contribution to the region’s food manufacturing sector and its role in the community’s economic development over the past two decades.

The project was facilitated through a collaboration between the Virginia Department of Agriculture and Consumer Services (VDACS), Frederick County, and the Frederick County Economic Development Authority. It is supported by a $50,000 Infrastructure Grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, with Frederick County providing matching local funds.

The announcement has been met with enthusiasm from local leaders, including Senator Timmy French and Delegate Bill Wiley, who praised HP Hood for its ongoing investment and support of local farmers. The expansion is expected to create new jobs and foster growth in Northern Shenandoah Valley’s dairy supply to meet the company’s needs.

Established in 1846, HP Hood has grown into a leading dairy processor with a wide range of products that cater to diverse consumer needs. This expansion underscores the company’s dedication to innovation, quality, and community partnership, setting a bright future for Virginia’s dairy industry.