Nestle USA has begun work on a $359 million production plant for flavored milk drinks and liquid Coffeemate products. The plant will be located about 40 miles northeast of Indianapolis, and is expected to total nearly 900,000 sq ft.

Currently, Nestle looks primarily to HP Hood to produce its bottled NesQuik and Coffee Mate products. Hood manufactures them under license, as it does with several other branded products including Lactaid, milk, and Southern Comfort Eggnog.

Separately, Florida-based Bravo! Foods said last month that it has signed a co-packing deal with Hood for production of Bravo’s flavored milk products.