Wisconsin is the country’s breadbasket when it comes to the food processing industry.
By Barbara Sanford • Illustration by Otto Steininger
Tucked away amid the golden cornfields of southern Wisconsin in America’s heartland is a large cluster of major food-processing manufacturers that play a significant role in feeding people around the world.
The trend began back in the early 1970s when Hormel Foods, Frito-Lay and Kikkoman Foods built manufacturing plants in the area. But it was only formally recognized five years ago when the Chambers of Commerce got the companies to collaborate.
“The food processing industry tends to be quiet,” says Nick George, president of the Midwest Food Processors Association. “Companies are competitive and do their own thing. They’re constantly looking for niche markets and breakthrough products. What were once vegetable canning companies now also do freezing, packaging and bottling. The industry has consolidated.”
Southern Wisconsin produces everything from fruits and vegetables to snack foods, beverages, meats and dairy products. More than 5,400 workers are employed at 83 food-manufacturing companies in Green, Jefferson, Rock and Walworth counties.
What makes the region a great place for these companies to do business? The checklist includes affordable, reliable utility service (water, sewer, gas and electric); geographic proximity to raw materials (fruits and vegetables), growers, suppliers, distributors and customers; a good transportation network; well-planned industrial parks; a skilled workforce; a strong infrastructure of related industries (tool and die and machine shops); room to expand; and a supportive regulatory environment.
Oregon-based Kettle Foods selected Beloit, Wis., centrally located in russet potato country, for its new $18 million 73,000-square-foot facility that opened last May with 88 employees who work to produce handmade potato chips and other all-natural snacks. City and state incentives and tax credits clinched the deal. “We have a unique culture at Kettle,” says President Tim Fallon. “We believe in sustainable building and business practices and giving back to the community.”
Located for more than 20 years in the Beloit area, food ingredients and flavors manufacturer Kerry Americas recently broke ground on its new $45 million, 200,000-square-foot Kerry Centre in Gateway Business Park.
It will house 500 employees and create 250 new jobs when it opens in December 2008.
“The food processing cluster provides a focus on food science and attracts new employees,” says Jim Egan, director of communication programs. “We’ve got the best of all worlds here.”
More than 25 million gallons of naturally brewed soy sauce are produced annually at Kikkoman Foods in Walworth. One of the first Japanese companies to build its own plant in the U.S. (in 1973), it is now halfway through a $100 million expansion project. “Our reputation as a good place to work is key in attracting and retaining employees,” says Dan Miller, vice president.
Beverage manufacturer American Purpac Technologies has been in the Beloit for four years. “With all the food companies in the same area, local advertising and word of mouth are all it takes to attract good employees,” says Dan Lang, vice president of sales and marketing.
It’s hard to miss the giant Hormel chili can beside the interstate in Beloit. Chili and salsa are produced here at food and meat product manufacturer Hormel Foods. “We were attracted to the area because of its unique niche-type business that complemented our specialty food products,” says Julie Craven, vice president of corporate communications.
Frito-Lay’s 750 Beloit-based employees produce a variety of potato chips and snack foods. “We have a strong consumer base in the Midwest,” says spokesperson Aurora Gonzalez. “We are recognized as a stable employer and partner with many community organizations. Our solid historic growth continues.”
Janesville’s Blackhawk Technical College, in collaboration with the Southwest Workforce Development Board and private companies, developed workforce training modules for the food processing industry. “The cluster is vital to the area,” says Patricia Kempinski, business and community development director. “We must create new initiatives to keep it going.”
The industry’s future is bright. “It’s not easy to outsource in the food industry,” says Andrew Janke, executive director of the Greater Beloit Economic Development Corporation. “Manufacturers need to be close to markets and raw materials. Wisconsin is the perfect place for us.”
