Listen to this article 3 min
The Kraft Heinz Co. is spending $400 million to build a 775,0000-square-foot distribution center in DeKalb, Illinois.
The food giant, which is jointly headquartered in Pittsburgh and in Chicago, described it as one of the largest automated consumer package goods distribution centers in North America. The new facility is expected to be completed in 2025.
Kraft Heinz (NASDAQ: KHC) said the state-of-the-art automation technology and national railway access will enable it to drive greater supply chain efficiencies and distribute its products to retail and foodservice customers faster.
“The DeKalb distribution center is expected to play a critical role in our larger distribution strategy,” Carlos Abrams-Rivera, executive vice president and president, North America, at Kraft Heinz, said in a prepared statement. “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. It will distribute 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 by implementing sustainable technology and solutions to reduce the waste produced at the facility and minimize its overall environmental impact.
Kraft Heinz posted 2022 net sales of about $26 billion.