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IA: Kraft Heinz to Invest $200M for New Davenport Facility, Retain 475 Jobs

11 Nov, 2015


The Iowa Economic Development Authority (IEDA) board 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 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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