NC: S&D Coffee to Invest $97M to Expand, Announces 200 New Jobs
20 Nov, 2012
Gov. Bev Perdue announced that S&D Coffee, a privately owned manufacturing and distribution company that produces coffee, tea and other beverages, will expand its presence in Concord. The company plans to create 200 jobs over the next five years and invest $97 million. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund award.
“Creating new jobs is my top priority,” said Gov. Perdue, “One of the best ways to do that is by helping existing companies expand. We know we have a strong business climate and the skilled workforce that S&D Coffee needs to grow and thrive in North Carolina.”
Founded in 1927 in Charlotte, S&D Coffee began providing fresh roasted coffee to local and regional grocery stores. The company grew and expanded its product offerings and services to customers. Currently, S&D produces an extensive line of products that include roasted whole bean and ground coffee, specialty coffees, cappuccinos, lattes, hot chocolates, iced tea, hot tea, juices, syrups, toppers and condiments. The company supplies coffee products to restaurants, hotels, vending and offices.
"Our business continues to grow and expand at a time when many companies have struggled" said Ron Hinson, chairman of the board, president, & CEO of S&D Coffee and Tea. "We considered locations in other states for this new round of expansion, but decided to stay in North Carolina and the Concord community. We thank the state of North Carolina, Cabarrus County and the city of Concord for their tremendous support. It seems fitting that S&D’s bright future as a premier national manufacturer should advance in the same community where we have been since 1929."
S & D Coffee, with its headquarters facility in Concord since 1929, has grown to become one of the city’s largest employers. The company employs 613 workers in seven sites across the state. Due to significant gains in market share over the last ten years, S & D has seen sales grow 400% over that period. Current and future growth is driving the company’s need for expanded facilities.
Salaries will vary by job function, but the average wage of the new positions is $36,311. The Cabarrus County average wage is $32,292.
To help facilitate this expansion, the company has been awarded a grant of up to $300,000 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance through local governments to attract business projects deemed by the governor to be vital to a healthy and growing state economy. One North Carolina Fund grants require a local match, and this grant is contingent upon approval of local incentives.
In addition, the state Economic Investment Committee voted to award a Job Development Investment Grant to S&D Coffee. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.
Under the terms of JDIG, the company is eligible to receive a grant equal to 70 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the nine years in which the company meets annual performance targets. If S&D Coffee meets the targets called for under the agreement and sustains them for ten years, the JDIG could yield as much as $1.56 million in maximum benefits for the company.
In addition, up to $521,000 could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more economically prosperous counties such as Cabarrus, 25 percent of the grant is allocated to the Utility Fund to encourage economic development in less prosperous counties.
Other partners who assisted with this announcement include: The N.C. Department of Commerce, N.C. Community Colleges, Cabarrus County, City of Concord and Cabarrus Economic Development Corporation.
For more information about S&D Coffee, including job opportunities, visit www.sndcoffee.com.