Continued Slowdown for Food & Bev Facility Projects in October

Activity sharply rose in July after a downtrodden spring, but has steadily decelerated in each month since.

An artist rendering of Nestle Purina Petcare's planned $550 million, 1 million-square-foot processing facility in Williamsburg Township, OH.
An artist rendering of Nestle Purina Petcare's planned $550 million, 1 million-square-foot processing facility in Williamsburg Township, OH.
Nestle Purina Petcare

Industrial and commercial market intelligence firm SalesLeads’ latest report shows that the pace of planned food & beverage facility projects continued to decelerate from a recent high in June. The firm’s data showed that after bottoming out between April and May, the number of food & beverage projects sharply rebounded to pre-pandemic levels in July, but has steadily declined in each month since.

SalesLeads’ monthly report tracking new such projects in North America showed 66 of them during the month of October, down from 68 in September, 74 in August and 77 in July. The new figure more closely resembles that of 67 in June and 64 in May.


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

  • 59 projects were for processing facilities (47 in September, 55 in August, 57 in July, 43)
  • 17 were for distribution and industrial warehouse (30 in September, 33 in August, 21 in July)
  • 28 were new construction projects (17 in September, 29 in August, 30 in July)
  • 16 were expansion projects (23 in September, 24 in August, 23 in July)
  • 30 projects entailed renovations and equipment upgrades (31 in September, 32 in August, 35 in July)
  • There were no plant closure projects tracked in October (1 in September, 0 in August, 1 each in July, June, May and April)
  • New York led all US states and territories with five projects, followed by the foursome of Pennsylvania, Ohio, Florida, Georgia and Texas with four apiece. Kansas, Ontario and Oklahoma each had three and Maine had two.

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During September, SalesLeads identified four new food & beverage facility construction projects with an estimated value of at least $100 million — compared to two in September and August. The two largest October projects came from Nestle Purina Pet Care, totaling $1 billion. The first involves investing $550 million to build a 1-million-square-foot processing facility in Williamsburg Township, OH. It has recently received approval, and completion is expected in 2023. The second is a $450 million investment to renovate and upgrade equipment on a 1 million-square-foot processing facility in Eden, NC. It also has received approval, and completion is expected in late 2022.

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

  • Grocery retailer Kroger, which plans to invest $95 million to build a 135,000-square-foot warehouse and distribution facility in Romulus, MI.
  • Specialty food maker Goya Foods, which plans to invest $80 million to expand and upgrade equipment at their warehouse and processing plant in Brookshire, TX.
  • Poultry processor Pilgrim’s Pride, which plans to invest $75 million to expand their processing facility in Cold Spring, MN by 50,000-square-feet.
  • Baby Food maker Babynov USA, which plans to invest $50 million to renovate and upgrade equipment on a recently acquired processing plant in Red Boiling Springs, TN.
  • Snack food maker Benestar Brands, which plans to invest $24 million to build a processing, warehouse and office facility in Kings Mountain, NC.
  • Specialty food processing company La Regina Di San Marzano USA, which plans to invest $20 million to renovate and upgrade equipment on a 226,000-square-foot processing plant in Alma, GA.
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