Kraft Heinz, the Chicago-based food conglomerate renowned for its Jell-O, Heinz ketchup, and Oscar Mayer hot dogs, recently announced plans to construct a $400 million distribution center in DeKalb. Slated to open in 2025, the center will employ over 150 individuals, contributing to the commercial construction industry's thriving job market.
Crain's Chicago Business states that the proposed 775,000-square-foot warehouse will be located in the ChicagoWest Business Center, a sprawling 1,200-acre business park about 65 miles west of Chicago. This strategic location, replete with rail access, enables Kraft Heinz to expedite product delivery to retail and food service customers, enhancing the efficiency of its supply chain.
Amplifying Supply Chain Capabilities
Kraft Heinz’s executive vice president, Carlos Abrams-Rivera, highlights the distribution center's pivotal role in handling over 60% of the company’s dry goods in North America. This development underscores the revolutionary thinking of their supply chain teams, resulting in improved efficiency and agility in the company's operations.
“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. The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60 percent 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.”
Executive Vice President at Kraft Heinz | Carlos Abrams-Rivera
Joining the ranks of Ferrara Candy, Meta, and Amazon, Kraft Heinz will be another reputable name in the industrial park. The park is being developed by Dallas-based Trammell Crow, while the project's general contracting will be undertaken by Oak Brook-based Krusinski Construction.
A Competitive Edge in a Thriving Industrial Market
Chicago's industrial market has witnessed a surge in warehouse deals in recent years, although the growth has started to plateau in 2023. Major firms such as Target, Walmart, Home Depot, and Unilever are leasing large-scale industrial buildings to optimize their distribution centers. In this landscape, the Kraft Heinz project continues the trend and enhances competitive positioning.
State-of-the-Art Distribution Facility
One of the largest consumer package goods (CPG) national distribution facilities in North America, Kraft Heinz's planned center will incorporate cutting-edge automation technology. The center's design will aid in reducing the company’s environmental footprint while ensuring a speedy and efficient distribution of its products.
Construction and Beyond: Local Opportunities
The Kraft Heinz project will generate opportunities not only during construction but also in the subsequent operational phase. The DeKalb Mayor and the DeKalb County Development Corporation Executive Director lauded the initiative, which will "elevate DeKalb's position as a food processing and distribution hub."
"We are very excited that Kraft Heinz will bring its worldwide reputation for quality products and services to our community. 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.”
Mayor of DeKalb | Cohen Barnes
Automation: Driving High-Volume Operations
The facility will be equipped with a 24/7 automated storage and retrieval system, which can manage double the volume for Kraft Heinz customers. The center will distribute over 60% of the company's food service business and approximately 30% of all dry goods, making it a key player in Kraft Heinz's North American supply chain.
This state-of-the-art facility in DeKalb is set to enhance the speed and efficiency of product delivery, increase employment opportunities, and establish a precedent for environmentally conscious design in the commercial sector. The project's contribution to the ongoing transformation of the ChicagoWest Business Center into a thriving industrial park further underscores its significance.
