Kraft Heinz to Build One of Largest Automated CPG Distribution Centers in North America
The Kraft Heinz Co. has revealed a more than $400 million investment to build one of the largest automated CPG distribution centers in North America. Located in DeKalb, Ill., the 775,000 square-foot national distribution facility will feature state-of-the-art automation technology and national railway access, enabling Kraft Heinz to drive greater supply chain efficiencies and distribute its products to retail and foodservice customers faster than ever. The facility is expected to open in 2025.
“As we continue on our journey to lead the future of food, our talented North America teams and collaborative external partners are innovating at a rapid pace to expand our supply chain capabilities,” said Carlos Abrams-Rivera, EVP and president, North America at Kraft Heinz. “The DeKalb distribution center 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. It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”
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The facility’s design includes a 24/7 automated storage and retrieval system with the ability to drive twice the volume for Kraft Heinz customers, distributing more than 60% of the company’s foodservice business and approximately 30% of all dry goods. It is also expected to contribute to Kraft Heinz’s ability to achieve its broader ESG ambitions to reduce its operational environmental footprint through the implementation of sustainable technology and solutions to reduce the waste produced at the facility and minimize its overall environmental impact.
“We’re driving end-to-end transformation across our entire supply chain, investing in automated technology and digitized solutions to increase the agility of our logistics operations,” said Erin Mitchell, VP of logistics and head of network restructuring at Kraft Heinz. “The construction of our new DeKalb distribution center is the latest example of this transformation in action. We have designed it to help ensure the delivery of our delicious, innovative and iconic products at the right time for our customers and consumers for years to come.”
Kraft Heinz has partnered with Trammell Crow Co., a global commercial real estate developer; Krusinski Construction Co., as general contractor; Daifuku, as integrated logistics automation provider; and the City of DeKalb and the DeKalb County Economic Development Corp. on the development of the facility.
“Located in the master planned ChicagoWest Business Center, which TCC has developed in partnership with Jerry Krusinski and his KCC team, Kraft Heinz will be located near other large-scale distribution companies in DeKalb,” said Josh Udelhofen, SVP with TCC Chicago. "The area benefits from a strong labor pool, Enterprise Zone incentives, as well as an ideal location along I-88.”
The new facility will bring more than 150 jobs to the region.
With 2022 net sales of approximately $26 billion, Kraft Heinz is committed to growing its iconic and emerging food and beverage brands on a global scale. It has a portfolio of six consumer-driven product platforms.
