Data: Planned Food & Bev. Projects Continue Decline in April

SalesLeads' tracked number of planned North American food & beverage industry projects has sequentially lowered in each month this year.

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A report released last week by industrial and commercial market intelligence firm SalesLeads found the number of planned North American food and beverage industry projects continued to decline as it has each month so far in 2020.

SalesLeads’ monthly report tracking such projects showed 64 food & bev. planned projects during the month of April, down from 70 in March, 79 in February and 89 in January, respectively.

The firm’s April recap is broken down as follows:

  • 42 projects were for processing facilities (43 in March, 60 in February)
  • 24 were for distribution centers or warehouses (26 in March, 22 in Feb.)
  • 15 were new construction projects (18 in March, 30 in Feb.)
  • 16 were expansion projects (17 in March, 17 in Feb.)
  • 34 projects entailed renovations and equipment upgrades (27 in March, 34 in Feb.)
  • 1 were plant closures (4 in March, 6 in Feb.)
  • Ohio led states and territories in the number of planned April food & bev. projects with five. Tennessee and Florida each had four, followed by Michigan, New York, California, Ontario, Idaho, Maryland and Illinois each with three.

I Stock 982396478iStockDuring April, SalesLeads identified only one new food & bev. facility construction project with an estimated value of at least $50 million, compared to March’s report that identified four projects with a value of at least $100 million.

The largest April project comes from Hormel Foods, which is investing $60 million for the renovation and equipment upgrades at its processing facility in Papillion, NE. Completion is set for late 2020.

The other largest food & bev. construction projects SalesLeads identified in April included:

  • Conagra Brands, which plans to invest $40 million for an expansion and equipment upgrades of their processing facility in Archbold, OH. Completion is set for Summer 2021.
  • Refresco Beverages plans to renovate and upgrade equipment at its 364,000-square-feet of recently-leased distribution space in Tampa, FL, with completion set for late 2020.
  • DB3 Agricultural Solutions plans to construct a 5 million-square-foot cannabis warehouse, growling and processing complex in Battle Creek, MI. It has recently received approval, with construction expected to start in Summer 2020.
  • Nestle Purina Petcare is planning a 2 million-square-foot expansion, renovation and equipment upgrades at its processing facility in Mississauga, Ontario, which has recently received approval.
  • Swire Coca-Cola USA is planning a 108,000-square-foot expansion and equipment upgrade at its processing facility in Fruitland, ID, which has recently received approval.
  • Continental Mills is planning a renovation and equipment upgrades on its recently-acquired 175,000-square-foot processing facility in Effingham, IL. It is expected to be operational in Fall 2021.
  • Associated Wholesale Grocers plans to invest $5 million for a 40,000-square-foot expansion of its warehouse in Goodlettsville, TN. They are currently seeking approval.
  • Pepsi Frito Lay plans to renovate and upgrade equipment for its 81,000-square-foot warehouse and distribution space in Dayton, OH, which has recently received approval.
  • Epic Cooling is planning a 36,000-square-foot expansion of its refrigeration warehouse in Lompoc, CA, which is currently seeking approval.
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