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Cold Foods Industry NewsCold StorageSupply Chain Logistics for Refrigerated & Frozen Food

Kraft Heinz Plans $400M Automated National Distribution Center

Expected to open in 2025, it will be among the largest automated CPG distribution centers in North America.

KraftHeinzLogo.jpg

Following a thorough evaluation of potential strategic transactions, Kraft Heinz has determined that separating into two standalone companies, “Global Taste Elevation Co.” and “North American Grocery Co.”, offers the most compelling opportunity to unlock long-term value for all Kraft Heinz shareholders.

July 13, 2023

The Kraft Heinz Company today announced a $400+ million investment to build one of the largest automated CPG distribution centers in North America. Located in DeKalb, Illinois, the 775,000 square-foot national distribution facility will feature state-of-the-art automation technology and national railway access, enabling Kraft Heinz to drive greater supply chain efficiencies and distribute its products to retail and foodservice customers faster than ever. The facility is expected to bring more than 150 jobs to the region.

“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,” said Carlos Abrams-Rivera, executive vice president and president, North America at Kraft Heinz. “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 facility’s design includes a 24/7 automated storage and retrieval system with the ability to drive twice the volume for Kraft Heinz customers, distributing more than 60% of the company’s foodservice business and approximately 30% of all dry goods. It is also expected to contribute to Kraft Heinz’s ability to achieve its broader ESG ambitions to reduce its operational environmental footprint through the implementation of sustainable technology and solutions to reduce the waste produced at the facility and minimize its overall environmental impact. 

“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,” said Erin Mitchell, vice president of Logistics and head of Network Restructuring at Kraft Heinz. “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.” 

Kraft Heinz has partnered with Trammell Crow Company (TCC), a global commercial real estate developer; Krusinski Construction Company (KCC), as general contractor; Daifuku, as integrated logistics automation provider; and the city of DeKalb and the DeKalb County Economic Development Corporation (DCEDC) on the development of the facility. 

About The Kraft Heinz Company
 
We are driving transformation at The Kraft Heinz Company, inspired by our Purpose, Let's Make Life Delicious. Consumers are at the center of everything we do. With 2022 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways.

 

KEYWORDS: AS/RS automated cold storage automated material handling automated pallet handling automated storage retrieval system automated warehouse solutions construction CPG CPG trends distribution center dry storage Kraft Foods Kraft Heinz new plant construction sustainability

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