Market Updates

Church & Dwight to Expand Gummy Vitamin Capacity by 75%

New production line to be constructed at manufacturing facility in Pennsylvania.

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By: Sean Moloughney

Church & Dwight Co., Inc. said it plans to expand its gummy vitamin production capacity, through the addition of a new production line to be constructed at its manufacturing facility in Pennsylvania. The company will continue to manufacture gummy vitamins at its two facilities in the State of Washington. Construction will begin in January 2014 and the line is scheduled to be operational in the first quarter of 2015.

“The gummy vitamin business is strategically important to Church & Dwight and is expected to be a significant contributor to the future growth of sales, earnings, and cash flows,” said James R. Craigie, chairman and CEO. “Our gummy vitamin sales are growing at a 20% rate to approximately $300 million in annual net sales in 2013. We expect double-digit gummy vitamin sales growth in 2014. We believe the future prospects of the gummy vitamin category are strong as more adults switch from traditional vitamin pills to gummy vitamins. This investment will expand our production capacity by 75% and will help to drive our long-term goals for revenue and earnings growth.”

The company expects to invest approximately $55 million in capital expenditures to construct the new production line, which is expected to employ approximately 180 people. For 2014, total capital expenditures are projected to be $85 million, of which approximately $40 million relates to the vitamin investment. The company has received an economic development assistance package from the Commonwealth of Pennsylvania in connection with the investment, consisting of grants, tax credits, and training funds.

Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products under the ARM & HAMMER brand name and other well-known trademarks.

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