US food giant Kraft Heinz plans to construct a state-of-the-art automated consumer packaged goods distribution centre with an investment of over $400m.
The facility, covering 775,000 square feet, will be located in DeKalb, Illinois and aims to enhance supply chain efficiencies and enable faster distribution of products to retail and foodservice customers. In addition to creating more than 150 jobs, the design of the centre will incorporate a “24/7 automated storage and retrieval system” capable of driving double the volume for Kraft Heinz customers. It is expected to handle more than 60% of the company’s foodservice business and approximately 30% of all dry goods.
Kraft Heinz is committed to its broader Environmental, Social, and Governance (ESG) goals and seeks to implement sustainable technology at the facility to reduce waste. The executive vice president, Carlos Abrams-Rivera, emphasized the critical role of the DeKalb distribution centre in the company’s distribution strategy, as it will handle a significant portion of Kraft Heinz’s dry goods in North America.
This new centre will rank among the largest automated distribution facilities in North America. As part of its supply chain transformation, Kraft Heinz is investing in automated technology and digitized solutions to enhance the agility of its logistics operations. The company has a reputation for offering quality products and services, and its presence in DeKalb will bring employment opportunities and stimulate the local economy.
Kraft Heinz has previously invested in improving its supply-chain facilities in other regions. In the UK, it invested £140m (then $199.3m) to expand its factory’s capabilities and produce a wider range of condiments. Additionally, the company consolidated its Canadian production into its US division to streamline operations and enhance synergies between the two markets.