Kraft Heinz nets $15M to replace Davenport plant

DES MOINES, Iowa – Kraft Heinz Foods Company will receive nearly $15 million in state and city incentives to construct a new manufacturing facility in Davenport.

The Iowa Economic Development Authority (IEDA) board has approved an incentive package amounting to $1.75 to Kraft Heinz Foods Company to demolish its existing manufacturing facility and construct a new one in the Eastern Iowa Industrial Center north of Davenport.

The IEDA decision comes the day after the city of Davenport agreed to give Kraft Heinz $10 million in tax increment financing. According to an article in the Des Moines Register, the city is also planning to spend nearly $6 million for improvements to infrastructure for the new building.

Currently, Kraft Heinz’s Davenport facility manufactures Oscar Mayer products and is the largest bologna plant in the world, employing 1,400 workers. The company plans to demolish the building, which was built in 1915 near the banks of the Mississippi River south of downtown Davenport. The new facility will operate with fewer employees.

“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 IEDA Director Debi Durham in a news release. “As major brands merge in this sector, consolidation and modernization will be the outcome.”

The IEDA incentives include $1.75 million in tax benefits under the High Quality Jobs Program. And additional $3 million in direct assistance can only be used 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.

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.

Image courtesy of Kraft

Source: Iowa Economic Development Authority

Source: Des Moines Register

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Jeannie Oliver

Jeannie Oliver is a writer and PR practitioner with a long string of awards behind her name. With a degree in journalism from the University of Oklahoma, Jeannie has worked as a high school journalism teacher, an editor for the Appaloosa Journal, and a media spokesperson for...