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BOARD ACTION: Board approves assistance for Kraft Heinz retention project in Davenport

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Tina Hoffman, Iowa Economic Development Authority
Phone: 515.725.3150, mobile 515.783.8225
communications@iowaeda.com
 
Economic Development Board approves assistance for Kraft Heinz retention project in Davenport
Company plans $200 million investment in state-of-the-art facility

November 5, 2015 (DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) board today approved a High Quality Jobs Program (HQJ) award to Kraft Heinz Foods Company to construct a state-of-the-art manufacturing facility in Davenport.

Earlier this year, H.J. Heinz Holding Corporation and Kraft Foods Group, Inc. consummated a merger to form The Kraft Heinz Company. The Kraft Heinz Company is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world. Some of the Company's brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Currently, Kraft Heinz’s Davenport facility manufactures Oscar Mayer products and is the largest bologna plant in the world. Initially built in 1915, Kraft Heinz purchased the facility from Kohr’s Packing Company in 1946. Located along the riverfront, this historic facility is not optimally designed for 21st century food manufacturing. As part of the merger, Kraft Heinz had been evaluating its North American facilities to optimize its operations.

“We are glad that Davenport, Iowa, was able to successfully compete for a new, state-of-the-art manufacturing facility that will certainly position it for future growth,” said Debi Durham. “As major brands merge in this sector, consolidation and modernization will be the outcome.”

The incentives awarded to Kraft Heinz today include modest tax benefits in the amount of $1.75 million and direct financial assistance in the amount of $3 million that can only be used by the company to demolish the existing facility and create a development-ready site that is marketable for future projects. The project has a capital investment of $163 million and will retain at least 475 jobs, of which 261 are incented at a qualifying wage of $17.84 per hour.
 
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Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.348.6200
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