Westrock Coffee opens Conway beverage manufacturing complex
Westrock Coffee opens a Conway beverage factory, with automated production, a development lab and nearby distribution capacity supporting its beverage business.
A new beverage factory in Conway
Westrock Coffee has opened a $315 million beverage manufacturing facility in Conway, Arkansas. The 570,000-square-foot plant produces coffee, tea and other beverages, bringing additional ready-to-drink capacity to the company's operations in the United States. The factory and a nearby distribution center were projected to create 600 jobs. Westrock, headquartered in Arkansas, began its business in Rwanda in 2009.
The company formally launched the facility on 13 June 2024. Robotics and automation span green coffee receiving, roasting and grinding, extraction, bottling and packaging.
Laboratory and distribution operations
An onsite research and development laboratory models full-scale operations for products moving into commercial production. The laboratory forms part of Westrock's services, alongside sourcing and distribution, detailed in its launch announcement.
A separate 530,000-square-foot warehouse and distribution center stands two miles from the factory. Westrock said the short distance would support the movement of materials and finished beverages. The two buildings serve different functions: the new plant manufactures beverages, while the neighboring center provides warehousing and distribution.
Commercial production started in April
Commercial production preceded the June launch. Chief executive and co-founder Scott Ford said the Conway extract and ready-to-drink plant began producing commercial products on 16 April 2024. By 9 May, Westrock had delivered its first commercial products from the multi-serve bottle line. Construction and the addition of other production capabilities were continuing.
Westrock recorded Conway startup costs of $9.8 million for the three months ended 31 March 2024, compared with $1.9 million a year earlier. The company reported a net loss of $23.7 million, against $4.3 million in the comparable quarter. Those losses covered the whole company; the startup-cost figures related specifically to Conway.
Further lines and capacity plans
Ford expected the glass bottle line to begin operating in the fourth quarter of 2024 and said its capacity was already fully booked. Based on committed orders, he expected the factory to operate at 75% of installed capacity during 2025, its first full production year. Both figures described management's forward plans as the manufacturing complex entered service.
Chief financial officer Chris Pledger was also examining opportunities to consolidate operations elsewhere in Westrock's network. He described potential asset rationalization and expense savings as areas for review, alongside the expansion in Conway.
Packaging formats enter service in stages
Westrock's May plan scheduled commercialization of the can and glass lines for the second half of 2024, alongside the operating bottle line:
- Multi-serve bottles: first commercial products delivered.
- Cans: commercialization planned for the second half.
- Glass: commercialization planned for the second half.
Westrock supplies coffee, tea, flavors, extracts and ingredients. It had offices in 10 countries and sourced coffee and tea from 35 countries at launch.
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