Tailgaters and brat fans of Wisconsin, rejoice! One of the world’s leading producers of sauerkraut is moving its headquarters to Wisconsin. And, it’s expanding its manufacturing operations in the state.
Fermented Food Holdings, Inc. is investing $13 million to expand local production in Bear Creek and relocate its corporate headquarters to Madison. The move will create 60 high-paying jobs and support Wisconsin’s agricultural economy.
The Wisconsin Economic Development Corp. is assisting the expansion with $500,000 in performance-based tax credits. The credits are contingent on investment and job creation.
“Fermented Food Holdings’ commitment to partnering with local farms, investing in local communities, and honoring Wisconsin’s deep agricultural heritage makes them a perfect fit for our state’s world-class food and beverage industry,” says WEDC Secretary and CEO Missy Hughes.
Fermented Food Holdings is one of the world’s largest producers of sauerkraut and fermented foods. It ships its products to all 50 states and internationally. The company’s primary business is the development, manufacturing, and distribution of natural fermented food products like sauerkraut, pickles, and kimchi.
The company’s expansion in Bear Creek will increase the facility’s capacity by 20 million pounds of cabbage annually – a 20 percent increase over current production.
Wisconsin is the fourth largest producer of cabbage in the U.S. Major farms are located in Outagamie, Racine, Kenosha, and Waukesha counties. Proximity to farms allows Fermented Food Holdings to directly source fresh ingredients — something the company wasn’t able to do before.
“A big motivation for us is to get closer to the source and strengthen our relationships with local farms,” says CEO Jorge Azevedo. “We were buying from brokers, buying from farms that were certified organic – but we didn’t know the people growing the product. You couldn’t call up their cell phone and know the family who grew it for you. We find that connection to be very important.”
The investment will create 60 full-time jobs. Forty-one will be based in Bear Creek, a small town in northeastern Wisconsin with about 400 residents. The new roles also offer wages well above the state’s hourly average. In addition to driving economic growth, the expansion honors the rich history of the facility, which was built over 100 years ago as Flanagan Brothers Pickling Company.
An additional 19 jobs will be added at the company’s new corporate headquarters in Madison. Fermented Food Holdings considered other big-city locations for its headquarters including Miami, Denver, and Austin. It chose Madison for its strategic location and bustling food and beverage industry.