The company announced recently it has started work on a $25-million project to convert a former fruit cannery in Modesto Calif. into a production and packaging facility for soy milk, brewed tea and almond milk.

Work on the 180,000-sq.-ft. processing and filling facility is slated for completion by mid-2009.

"Demand for organic grains and grain-based ingredients is strong as more and more natural organic products come to market," said Steve Bromley, president and chief executive officer. "We feel we are really well positioned in this regard."

Bromley said demand for organic soy milk and beverages is on the rise.

The company said the new plant is part of its business plan to expand processing and packaging capabilities in strategic areas to meet international demand.

The California project coincides with the recent expansion of a packaging facility in Alexandria, Minn. and upgrades to a soy concentrate facility purchased in 2007 in Heuvelton, a community in New York state.

"Just recently the Minnesota facility packaged in excess of 240,000 12-pack cases in one week, or approximately 2.9 million quarts of finished product, a new record for this operation," Bromley continued.

The California facility will be commissioned in phases, but when complete will approximately double SunOpta's...