US food giant Kraft Heinz has announced an investment of more than $400m to build a new automated consumer packaged goods distribution centre.

The company revealed that the facility, which will be situated in DeKalb in Illinois, will comprise 775,000 square-feet. The group hoped that it will improve supply chain efficiencies and be able to distribute its products to retail and foodservice customers “faster than ever”.

The facility is expected to bring more than 150 jobs to the region.

The new centre’s design is set to include a “24/7 automated storage and retrieval system” which will be able to drive “twice the volume for Kraft Heinz customers”. The food major added that the centre will distribute more than 60% of the company’s foodservice business and approximately 30% of all dry goods.

Kraft Heinz also expects the facility to contribute to the company’s broader ESG goals. More specifically, the company has planned to implement sustainable technology to reduce the waste produced at the facility.

Carlos Abrams-Rivera, executive vice president at Kraft Heinz, said: “The DeKalb distribution centre is expected to play a critical role in our larger distribution strategy, moving more than 60% of Kraft Heinz dry goods in North America through our automated facilities.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company stated that the new centre would be one of the largest automated distribution facilities in North America.

“We’re driving end-to-end transformation across our entire supply chain, investing in automated technology and digitised solutions to increase the agility of our logistics operations,” Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz, said.

Kraft Heinz has invested in improving its supply-chain facilities elsewhere in recent years.

In June 2021, the company invested around £140m (then $199.3m) into its UK factory, allowing it to produce a wider range of condiments.

Towards the end of the year, the food giant consolidated some operations as it merged its production in Canada into its US division in a move “aimed at streamlining and synergising” its businesses in the two markets.