Kervan USA, a Turkish company that produces gummy, licorice, and marshmallow candies, will open a $20 million packaging and manufacturing facility in the Lehigh Valley, Pennsylvania.
The company currently has its U.S. headquarters in Whitehall Township, in the Lehigh Valley, and packaging and distribution locations in New Jersey. It will consolidate those operations, and later add manufacturing, at a 90,000-square-foot building under construction in Lower Nazareth and Bethlehem townships that is expected to be open next year. Plans call for about 40 new employees to be hired, bringing Kervan USA’s Lehigh Valley workforce to about 50.
“This location made perfect sense, both proximity to the ports and the workforce,” said Gokhan Kacmaz, Kervan USA’s Chief Financial Officer. “We saw a big opportunity. All this made the Lehigh Valley a great location to make this investment.”
Kervan USA CEO Burak Cezik said the Lehigh Valley’s population growth, to more than 708,000, was another factor: “This area is booming.” The cost to locate in the Lehigh Valley compared to New Jersey was another advantage, the Kervan executives said.
Food and beverage companies operating in the Lehigh Valley include global brands such as Coca-Cola, Boston Beer, Ocean Spray, and Keurig Dr Pepper, along with Freshpet, Bimbo Bakeries, and Bakerly/Norac Foods, and smaller producers such as Kervan USA, The Granola Factory, and Mishka Vodka. Employment in food and beverage production in the Lehigh Valley has increased by about 52% in the last decade, to about 7,100. Nearly half of all dog and cat food production jobs in Pennsylvania are in the Lehigh Valley.
Manufacturing is a leading driver of the region’s growing economy, with more than 700 manufacturers collectively producing an output of $9 billion annually. That makes up 16% of the Lehigh Valley’s record Gross Domestic Product of nearly $56 billion.
International manufacturers such as Kervan USA play a sizeable role. The Lehigh Valley has more than 100 international companies, including the U.S. headquarters of Olympus Corporation of the Americas (Japan) and B. Braun Medical (Germany). It is home to operations of global leaders like Mack Trucks (Sweden), Evonik (Germany), and Air Liquide (France).
Kervan manufactures more than 200 different candy varieties under the Bebeto and Yumy Yumy brands in Turkey, Poland, and Egypt. It plans to import them to the new Lehigh Valley location through the port in Newark, N.J., and then package them for distribution. Manufacturing is anticipated to follow within a few years.
Kervan products are sold in stores including Walmart, Dollar Tree, Dollar General, and Trader Joe’s. The company also makes branded candy, including for Crayola, the iconic manufacturer of crayons and other creative art supplies that has been based in the Lehigh Valley for more than a century.