The pace of facility investment activity in the US food & beverage sector ended 2021 with strong momentum, according to the latest data by industrial and commercial intelligence firm SalesLeads.
The firm tracked 82 such projects during November, covering plans for new facility construction, expansions or significant upgrades. That's up from 69 in November and a healthy rebound from sluggish project counts of 59 and 61 in October and September, respectively. The late 2021 figures are more on-par with the robust activity seen this past summer, when there were 86 in August; 72 in July; and 70 in June.
December was the second-best month of the year for project activity and pushed the 2021's total count to 816 for an average of 68 projects per month. That's down from 2020's average of 72.7.
SalesLeads' December recap was broken down as follows:
- 59 projects were for processing facilities (53 in November, 46 in October)
- 23 were for distribution and industrial warehouse (21 in November, 15 in October)
- 34 were new construction projects (29 in November, 26 in October)
- 23 were expansion projects (17 in November, 16 in October)
- 31 projects entailed renovations and equipment upgrades (27 in November, 19 in October)
- 4 projects were for a plant closure (2 in November, 4 in October)
- New York and Pennsylvania led all US states with nine projects announced in December each. California had five, while Tennessee, Texas, Ohio and Wisconsin had four apiece. Arkansas, Virginia and Washington each had three.
According to SalesLeads' data, December had two new food & beverage facility construction projects with an estimated value of at least $100 million, down from five in November and a whopping nine in October. The largest tracked food & beverage December project announcement was from alcoholic beverage maker Sazerac Company, which plans to invest $400 million to build a production facility in Charlestown, IN. They are currently seeking approval for the project.
The other largest food & beverage facility construction projects SalesLeads identified in December included:
- Specialty frozen food manufacturer McCain Foods USA, which plans to invest $169 million for a 135,000-square-foot expansion and equipment upgrades at its processing facility in Plover, WI. Construction is expected to start this Spring.
- Foodservice distributor Performance Food Group, which plans to invest $80 million to build a 325,000-square-foot distribution center in Ashland, VA.
- Snack food maker General Mills, which plans to invest $65 million on renovation and equipment upgrades of its processing facility in Murfreesboro, TN.
- Bakery company Clyde's Donuts, which plans to invest $50 million on renovation and equipment upgrades at a recently leased 153,000-square-foot processing facility in Glendale Heights, IL.
- Hydroponic farming company Vertical Harvest, which plans to invest $40 million to build a 63,000-square-foot growing and processing facility in Chicago. Completion is set for 2023.
- Supermaket chain Hy-Vee, which plans to build a distribution center in Nashville. Completion is set for 2023.
- Rice processing company Riceland Foods, which plans to invest $13.2 million on expansion and equipment upgrades at its processing facility in Stuttgart, AR and Jonesboro, AR.
- Produce farm Dan Avila & Sons, which plans to build a 180,000-square-foot warehouse and distribution facility in Turlock, Ca.
- Foodservice logistics company Dandy Cooling Company, which plans to build a 155,000-square-foot warehouse and distribution facility in Oxnard, CA.
- Grocery retailer Giant Food, which plans to build an 81,000-square-foot distribution center in Manassas, VA.