Barilla America, Inc. (Barilla), maker of America's top-selling brand of pasta, and Jacobson Warehouse Company, Inc. (Jacobson), a supply chain logistics services company, today announced plans for a new pasta-making and distribution facility in Avon, New York. Barilla will be investing approximately $87.7 million to build its second U.S. pasta-making and distribution facility; Jacobson will be investing approximately $8.5 million. The plant, to be located in Avon, NY, 23 miles south of Rochester and 50 miles east of Buffalo, will service the Northeastern United States, which accounts for over 50 percent of Barilla's U.S. sales.
When complete, the Barilla pasta plant and its accompanying warehouse will employ close to 120 New York State residents and pour millions of dollars into the local economy. The company also estimates that its construction costs will create millions of dollars in local revenue.
When fully operational, Barilla projects that the plant will produce 100,000 tons of pasta – including cuts ranging from farfalle to ziti. At its complete size, the Barilla production facility will encompass a 49-acre lot and include a 100,000 S.F. plant and a 200,000 S.F. distribution center.
The companies plan to break ground on the project in June 2006, with production starting by mid-June 2007 and full operations in place by late June 2009.
Barilla and Jacobson worked closely with local and state elected officials to secure government grants and loans needed to build the facility. Officials included Avon Mayor Tom Vonglis, New York State Senator Dale Volker, and New York State Assemblyman Daniel Burling, as well as Patrick Rountree of the Livingston County Development Group and Jim Jacob from Empire State Development.
"We sought a location that felt like a home away from home," said Barilla America President Kirk Trofholz. "Parma, Italy has been our home for almost 125 years, ever since Pietro Barilla opened his small pasta and bread shop. We were looking for a community that would provide the same hometown feel as Parma, as well as the right mix of benefits. We found all of that in Avon."
Factors influencing Barilla America's decision to select Avon over other contenders for its new facility include the town's skilled workforce, the region's excellent living conditions, Avon's convenient access to both railroads and major highways, and its proximity to Barilla's customer base in the Northeast.
Jacobson Warehouse Company, Inc., a division of Jacobson Companies, will build and operate the warehouse. Jacobson, which also operates Barilla's Ames, Iowa distribution center, will employ the people working in the warehouse and will finance that facility's construction. Jacobson Packaging Company will install packaging lines and employ the people to build store displays and Club store packaging, as they currently do for Barilla in Des Moines, Iowa.
Craig Petermeier, CEO and Vice Chairman of Jacobson Companies, said "Jacobson is pleased to make this commitment to Barilla and expand on the successful partnership our two companies have created since the set up of their first North American distribution center. We look forward to becoming an active participant in the Avon community and growing with Barilla in New York."
Patrick Rountree, managing director of the Livingston County Development Group, said: "This plant is an excellent opportunity for Avon, Livingston County, and the State of New York to drive economic development into western New York. We look forward to a long-term partnership and are proud to welcome the Barilla family into our community."
Based in Bannockburn, Illinois, Barilla America, Inc. was established in 1996 by the Barilla Group. Barilla America is the top-selling brand of pasta in the United States, with a 20 percent market share. The Barilla Group, a family-owned manufacturer of pasta and other grain-based food products since 1877, is the world's largest pasta manufacturer.
The Avon facility will be Barilla's second manufacturing plant in the United States. Barilla America opened its Ames, Iowa plant in 1998.
Since 1968, the Jacobson Companies have provided supply chain management services from a base of operations headquartered in Des Moines, IA. There are six integrated, logistics-related companies operating under the umbrella of The Jacobson Companies: Jacobson Warehouse Company, Jacobson Transportation Company, Jacobson Logistics Company, Jacobson Packaging Company, Jacobson Staffing Company, and Jacobson Investment Company. Jacobson's integrated operations serve the needs of leading manufacturing companies, providing full-service, seamless solutions to the complexities of supply chain management while helping clients achieve a greater return on assets. Jacobson is employee-owned and ISO 9001:2000 certified. Today, the Jacobson Companies employ over 3,000 people in over 70 locations nationwide.
About Barilla America, Inc.
The Barilla Group launched its U.S.-based division, Barilla America, Inc., in 1996. Since 1999 Barilla has been the No. 1 brand of pasta in the United States and today produces the fastest-growing pasta and sauce brands in their categories. Barilla America brings the same commitment to flavor, convenience, and the highest culinary standards to America as Barilla has offered in Italy for over 128 years. Barilla America employs 238 people at its Bannockburn, IL headquarters and Ames, Iowa plant.
About The Barilla Group
Since 1877, Barilla has been producing pasta and other grain-based foods for consumers around the world. The company's basic animating principle has been to make these healthy products affordable to all, no matter where they might be. Barilla has remained true to its entrepreneurial roots over the past four generations, by combining ancient Italian traditions with cutting-edge technological advances. The result is a globally successful company, built on a foundation of principles that allow for continuous growth to reach ever-expanding goals. The Barilla Group – whose brands include Barilla, Mulino Bianco, Pavesi, Voiello, Wasa, Misko (Greece), Filiz (Turkey), Yemina and Vesta (Mexico) and Academia Barilla – is the first Italian food group, headed by the Barilla family for over 125 years. The Group has 27 factories (15 in Italy and 12 abroad). It realizes 30% of sales in volume in more than 120 countries.
Jacobson Companies started in 1968 as a public warehouse in Des Moines, Iowa, and are now a national premier provider in third-party warehousing, packaging and fulfillment, logistics and transportation, and light industrial and warehouse staffing. The Jacobson Warehouse Company offers public and contract warehousing for food-grade products, chemicals, appliances, pharmaceuticals, electronics, plant warehousing, import and export, freight forwarding, cross-dock and much more. Jacobson operates over 16 million square feet nationwide. The Jacobson Packaging Company offers value-added services such as prepacks, multipacks, shrink packaging, labeling, pallet-displays, bagging, over-wrapping, and more. This creates a "customizing warehouse" solution for "produce to order" and "brite stocking" solutions. Jacobson Transportation Company is a full-truckload and brokerage company; operating over 450 tractors and 1200 trailers. Jacobson Logistics is a non-asset total freight management provide, which includes dedicated delivery, freight optimization and payment, and international services. Jacobson Staffing specializes in providing temporary staffing solutions for light industrial and warehousing functions. For additional information, please visit our website at www.jacobsonco.com.
For more information please contact:
Livingston County Development Group:
Megan Connor Murphy
Barilla America, Inc.
Doug Den Adel