Food Sector Continues Expansion: Large Food & Beverage Site Selection Projects Illustrate Sustainable Growth of Industry

2021 was a busy year for food & beverage site selection projects across all areas of the country. According to Food Dive, the food & beverage sector was among the top three manufacturing industries for new construction, with about 50% of all U.S. states reporting new food production facilities in 2021.

Increased consumer demand and logistics optimization are two of the main expansion drivers in the sector. When looking for food production and distribution operations, site selection factors to be considered include proximity to growers and customers, available labor, real estate availability, site infrastructure, and economic incentives. Here are some of the biggest food sector deals in 2021:

• Rauch North America, Concord, N.C.—plans to invest $600 million to establish a new 1.4-million-square-foot facility, creating 323 jobs
• E & J Gallo Winery, Fort Lawn, S.C.—plans to spend $423 million to establish a new production facility and distribution center (496 jobs)
• Freshly, Atlanta, Ga.—Freshly plans to invest $52 million to establish a 289,000-square-foot warehouse and distribution facility (665 jobs)
• Tyson Foods, Bowling Green, Ky.—this $355-million investment will establish a new 400,000-square-foot manufacturing facility (450 jobs)
• Hills Pet Nutrition, Tonganoxie, Kan.—plans to invest $250 million to establish a new wet food manufacturing facility (80 jobs)
• Beam Suntory, New York, N.Y.—Beam Suntory will relocate its headquarters from Chicago, Illinois to a new facility in New York City (150 jobs)
• Tyson Foods, Danville, Va.—plans to invest $300 million to establish a new 325,000-square-foot manufacturing facility (376 jobs)
• Sazerac Company, Charlestown, Ind.—this brewer and distiller will invest $408 million to build a new distillery (396 jobs)
• Albany Farms, Belle Fourche, S.D.—Albany Farms will invest $10 million to relocate its headquarters from Los Angeles, Calif. to Belle Fourche (228 jobs)
• Gruma Corporation, Plainfield, Ind.—Gruma Corporation plans to invest $148 million to establish a 510,965-square-foot manufacturing facility (544 jobs)
• Leprino Foods, Lubbock, Tex.—this new $870-million, 850,000-square-foot dairy products manufacturing facility will create 600 jobs
• Red Bull, Concord, N.C.—Red Bull plans to invest $740 million to build a 2-million-square-foot manufacturing and distribution facility (400 jobs)
• Kroger Fulfillment Network, Louisville, Ky.—Kroger Fulfillment Network will invest $4.1 million to build a 50,000-square-foot fulfillment center (161 jobs)

The food & beverage sector shows no signs of slowing down in 2022. For example, to kick off the New Year, on January 1 Kroger Company announced it will spend $31.2 million to build a new fulfillment center in Jefferson, Indiana, creating 175 jobs.

With the many complex site selection factors to be considered and the limited supply of qualified sites, hiring a site selection firm with deep experience in the food & beverage industry is essential for finding the best location to expand.