Virginia Diner will invest over $4.5 million to nearly double production of its iconic gourmet peanuts in Wakefield, Virginia. The project is expected to create 16 jobs.

The planned expansion is expected to occur in two phases over the next four years, according to the Governor’s office. The first phase includes construction of a 22,000 square-foot addition to the existing building for warehousing, distribution, and office space. This new facility will also enable the company to store all of its products on-site.

“Virginia Diner has been an icon throughout Virginia and the Mid-Atlantic region for 92 years in large part due to the support of our local Wakefield community, regular customers throughout Sussex and surrounding counties, and families who have been visiting for several generations,” said Virginia Diner President and COO Andrew Whisler. “We are thankful for the support of the Commonwealth of Virginia and Sussex County as we embark in a multi-year, multi-phase investment to bring more jobs, revenue, and agricultural purchases to the region.”

The second phase of the project is an expansion of Virginia Diner’s manufacturing facility, which will increase the company’s production capacity, improve operational efficiencies, and decrease costs, thereby improving product margins. Virginia Diner roasts an average of 4,200 pounds of peanuts per day, scaling up to more than 7,000 pounds per day during peak holiday season.

"Agriculture is Virginia’s largest industry, and that means it is vital to our economy and the well-being of our residents,” said Governor Ralph Northam. “Virginia Diner celebrates all of the culinary traditions of the Southeastern corner of our Commonwealth, most notably, Virginia peanuts. This expansion will not only bring new jobs and investment to Sussex County, but will create important new markets for Virginia peanuts and help secure the future of one of our most iconic businesses.”

The Virginia Department of Agriculture and Consumer Services worked with Sussex County and the Sussex County Economic Development Authority to secure this project for the Commonwealth. Governor Northam approved a $100,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which Sussex County will match through a rebate of taxes and infrastructure improvements that will directly benefit Virginia Diner as well as two adjacent agriculture-related businesses.

“Peanuts have been an iconic part of the Commonwealth’s agricultural history since we became the first state in the country to begin commercial peanut production nearly 200 years ago,” said Secretary of Agriculture and Forestry Bettina Ring. “Thanks to companies like Virginia Diner, the Commonwealth’s reputation as a producer of the world’s best peanuts continues to thrive. I’m thrilled that we could partner with Sussex County through the Agriculture and Forestry Industries Development Fund to support this cornerstone of Virginia agriculture.”

The company currently sources Virginia-variety peanuts exclusively from Florida and as part of this expansion, will create 16 new jobs and commit to sourcing 100 percent of its peanut purchases from the Commonwealth, leading to the purchase of nearly four million pounds of peanuts from Virginia shellers over the next four years. Virginia Diner’s gourmet peanut business accounts for more than 80 percent of the company’s annual sales, with half their sales going through major retailers with the remainder direct to customers through the company’s mail order catalogs and website.

“We are delighted that Virginia Diner has made the decision to continue to grow and prosper in the Gateway Region,” said Keith Boswell, President and CEO of Virginia’s Gateway Region Economic Development Organization. “We look forward to continuing our strong partnership with the company and celebrating this next chapter of their growth for Sussex County.”