Kraft Heinz distribution facility coming to DeKalb by 2025

DeKALB – A global food manufacturer is looking to put down roots in DeKalb.

After almost a year of discussion between DeKalb city officials and project leaders, the development known as Supernova has now been unveiled as Kraft Heinz.

Its first phase of the company’s estimated $400 million investment includes a 775,000 square-foot automated distribution facility and now is underway at Gurler and Peace roads.

“As we continue on our journey to lead the future of food, our talented North America teams and collaborative external partners are innovating at a rapid pace to expand our supply chain capabilities,” Carlos Abrams-Rivera, executive vice president and president, North America at Kraft Heinz, said in a news release. “The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60% of Kraft Heinz dry goods in North America through our automated facilities. It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”

The distribution facility is expected to open in 2025, according to the release.

The development, once built, is expected to bring more than 150 jobs to DeKalb and the surrounding region, officials said.

City Manager Bill Nicklas said that knowing the city has landed Kraft Heinz means a lot.

“It’s a global company with a very, very good reputation in the food industry,” Nicklas said. “[It’s] two giants in the food industry that merged some years ago produced products that most Americans and many people all around the world have in their refrigerators and otherwise in their kitchens. To pick us amongst all the places, all the tens of thousands of communities that they could’ve picked from I think is a note about what we offer.”

DeKalb Mayor Cohen Barnes also praised the decision and said it would resonate into the future.

“We are very excited that Kraft Heinz will bring its worldwide reputation for quality products and services to our community,” Barnes said in the release. “The construction and post-construction employment opportunities they bring will have a positive and lasting impact on our residents, and this positive impact is compounded by the additional diversification of our tax base, which will spur further interest in DeKalb for many years to come.”

With its 24/7 automated storage and retrieval system, the facility’s design will enable Kraft Heinz to drive twice the volume of customers, distributing more than 60% of the company’s foodservice business and about 30% of all dry goods, according to the release. In doing so, the company anticipates reducing its environmental footprint by utilizing sustainable technology and solutions to lessen waste produced at the facility and its overall environmental impact.

Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz, said the company is looking forward to doing business in DeKalb.

“We’re driving end-to-end transformation across our entire supply chain, investing in automated technology and digitized solutions to increase the agility of our logistics operations,” Mitchell said in the release. “The construction of our new DeKalb distribution center is the latest example of this transformation in action. We have designed it to help ensure the delivery of our delicious, innovative and iconic products at the right time for our customers and consumers for years to come.”

It remains unclear if Kraft Heinz intends to make any products in its DeKalb distribution facility.

Nicklas said the project will allow for additional expansion as the company’s plans contain a few phases.

Nicklas attributed the city’s ability to land Kraft Heinz to its business-friendly ways.

“We’re very interested in trying to reduce local tax rates,” Nicklas said. “That’s important to big companies and also homeowners. We work well with our other local taxing bodies. We have a good incentive plan part of the state enterprise zone system. We have a very supportive governor and state legislature who are very much interested in either landing or retaining large businesses, which produce a lot of, not only investment, which helps with the tax base, but also a lot of jobs.”

The development was made possible thanks, in part, to efforts made by Trammell Crow Company, Krusinski Construction Company, Daifuku and the DeKalb County Economic Development Corp, according to the release.

DCEDC Executive Director Paul Borek said he is excited to welcome the development to DeKalb.

“The DeKalb County Economic Development Corporation [DCEDC] is pleased to support the City of DeKalb and the ChicagoWest Business Center in attracting the Kraft Heinz Company to DeKalb County,” Borek said in the release. “As one of the world’s largest food and beverage companies with global brand recognition, Kraft Heinz elevates DeKalb’s position as a food processing and distribution hub.”