After a robust Summer, the pace of announced food and beverage facility projects has seen a considerable slowdown so far this Fall.
That's according to the latest data from SalesLeads, an industrial and commercial intelligence firm that tracks investment project activity for facilities across numerous verticals, including food & beverage. SalesLeads said it tracked 59 such food & beverage projects in October, covering plans for new facilities, expansions or upgrades. That's down from 61 projects in September and far below the 86 tracked in August; 72 in July and 70 in June.
For context, SalesLeads tracked an average of 72.7 projects per month during 2020.
SalesLeads' October recap was broken down as follows:
- 46 projects were for processing facilities (45 in September, 67 in August, 51 in July)
- 15 were for distribution and industrial warehouse (19 in September, 24 in August, 28 in July)
- 26 were new construction projects (25 in September, 22 in August, 26 in July)
- 16 were expansion projects (16 in September, 26 in August, 18 in July)
- 19 projects entailed renovations and equipment upgrades (22 in September, 44 in August, 28 in July)
- 4 projects were for a plant closure (5 in September, 5 in August, 0 in July)
- Texas led all U.S. states and Canadian territories in the number of September food & bev. facility projects with six. Florida was next with five, followed by Michigan and California with four each; the foursome of Ohio, Ontario, Virginia and Georgia with three each; and Indiana and Wisconsin with two apiece.
According to SalesLeads' data, while October had the second-fewest food & beverage facility construction projects this year (May, 56), it was the year's most top-heavy month. During October, SalesLeads identified nine new projects with an estimated value of at least $100 million, up from three in September and four in August. The largest tracked food & beverage October project announcement was from Leprino Foods, which plans to spend $870 million to build a processing facility in Lubbock, TX, which has recently received approval.
The other largest food & beverage facility construction projects SalesLeads identified in October included:
- Tyson Foods, which plans to invest $355 to build a 400,000-square-foot processing facility in Bowling Green, KY. It is currently seeking approval, and completion is set for 2023.
- Pet food maker Nature's Valley, which plans to spend $180 million to build a 250,000-square-foot warehouse and processing facility in Lincoln, NE. It is currently seeking approval, and the company will consolidate regional operations upon completion.
- Dairy products maker Agropur US, which plans to spend $168 million on a 210,000-square-foot expansion and equipment upgrades on their processing facility in Little Chute, WI. Completion is set for early 2023.
- Mushroom processor Shogun Maitake, which plans to invest $31 million on the construction and equipment upgrades on a 135,000-square-foot processing facility in Thames Center, Ontario. They have recently received approval.
- Pet food maker Alliance Freeze Dry, which plans to build a 220,000-square-foot warehousing and processing facility in Lynden, WA. They have recently received approval.
- Shared commercial kitchen service provider Fork Food Lab, which is planning a renovation and equipment upgrades on a 42,000-square-foot production plant in South Portland, ME. They are currently seeking approval for the project, and will relocate operations upon completion.
- Food-tech company Turtle Tree, which is planning to renovate a recently-acquired 24,000-square-foot laboratory and office facility in West Sacramento, CA. Renovations are expected to start in early 2022, with completion set for Summer 2022.
- Specialty food products maker Premio Foods, which is planning a renovation and equipment upgrades on a 19,000-square-foot refrigerated warehouse in Hawthorne, NJ. They have recently received approval.
- Golden Harvest Food Bank, which is expanding and planning to invest $2 million to renovate 13,000-square-feet of warehouse space in August, GA. They are currently seeking approval.