The bakery, which produces thaw and sell baked goods, expects the facility to be operational by early 2011 in a bid to triple production.

Ron Ogan, president and chief executive officer, said: "We pride ourselves on our innovative products and believe our research and development group has been the catalyst for our significant growth in the last few years."

The new replacement bakery in Phoenix, US, will create 200 extra jobs and will include a 4,310 square foot innovation centre including a product review area for sharing ideas and providing technical resources.

Café Valley Bakery distributes more than 30,000 products to food outlets across the US, Canada and Puerto Rico.