Growth clusters: food processing industry, supply chain increases to meet demand

2021-11-22 10:30:00 By : Ms. Pepper Zhang

With a $205 million expansion project in Holland Charter Township, frozen food producer Request Foods Inc. essentially doubled its commitment to the region where it began operations more than thirty years ago. 

After Bil Mar Foods was sold to Sara Lee Corp. in 1988, Request Foods, a company owned by the DeWitt family, was spun off in 1988 and has been expanding steadily over the years. However, the planned new expansion project marks an important turning point for this local company, which produces food for national brands and private label customers.

Menaka Abel, Chief Financial Officer of Request Foods, told MiBiz: “This investment is truly transformative and will take us to the next level.” “A large part of it comes from the pandemic (lessons), I want to say (pandemic) It kind of motivates us to do something, maybe a little earlier than we originally planned."

The large-scale expansion adds significant storage and production capacity to Request Foods. It is a large-scale project for a local industry that is quietly prospering and expanding in Western Michigan (mainly Ottawa and Allegan Counties). In addition, with the development of food processors, they are also strengthening the strength of the local supply chain, including packaging, warehousing, logistics and material handling businesses, many of which are also expanding. 

Supported by more than US$10 million in incentives provided by state and Dutch concession towns, Request Foods’ expansion includes various components, including plans for a US$81 million expansion of the company’s existing 300,000 square foot facility at 12875 Greenlee Street .

Request Foods also hopes to expand its storage and cold storage capacity-a service that is in short supply-to add 157,000 square feet of cold storage space, and possibly 100,000 square feet.

The company also plans to lease an existing warehouse on a nearby plot and transform it into a new production plant specializing in ready-to-eat food.

This series of upgrades increased production capacity and allowed the company to maintain a diverse portfolio of products and customers, which helped Request Foods survive the COVID-19 pandemic.

"One of the lessons we learned from the pandemic is diversity," Abel said. "We are fortunate to be able to thrive during the pandemic because of our diverse customer base. We work with food service and retail customers."

As the food service department of its business almost stagnated at the peak of the pandemic, it was offset by Request Foods' soaring retail department, which included frozen foods from grocery stores. According to Abel, the industry's growth continues, with retail now accounting for about 75% of Request Foods' business.

"In the past six months, we have seen food service really come back, and the retail industry has not slowed down," Abel added. "(Food service) has seen incremental and significant growth."

The ready-to-eat production facility will strengthen the retail product line and provide single-serving frozen foods that can be quickly prepared in a microwave instead of a traditional oven.

"A lot of the expanded capacity will be used to support retail food sales. For many of the options we call single servings, we find that there is a lot of demand," Abel said. Grow together

The rapid growth of Request Foods not only shows what its peers in the food processing industry are experiencing, but the company is actively promoting the success of local suppliers.

According to Abel, some of the major local partners include Hudsonville-based beef packaging business West Michigan Beef Co. LLC, Grand Rapids-based dairy product supplier Country Fresh, and Hart-based frozen vegetable processor Michigan Freeze Pack Co. .. 

Coincidentally, the Western Michigan Beef Company recently received a $150,000 Food and Agriculture Investment Fund grant from the state to help build a 70,000-square-foot beef processing plant in Hudsonville. The expansion is expected to create 10 new jobs, which will increase the capacity of custom and traditional slaughter operations in its business.

"Our (food) economy is growing," said Amanda Murray, vice president of business solutions at Lakeshore Advantage Corp., an economic development company that serves businesses in Ottawa and Allegan County. 

"The companies are connected," Murray said. "Request Foods, they not only buy from Western Michigan beef, but also from local suppliers throughout Western Michigan and throughout Michigan. This is just one example of how we ultimately get local employers to seek development."

In addition to the Western Michigan Beef Project, Murray has also identified some recent food-related expansions in the two counties, including companies such as Hudsonville Creamery and Ice Cream Company LLC and Sprinkles Donut Shop LLC.

The company is also expanding its scale to meet the growing demand for cold storage.

Classic Transportation & Warehousing of Leighton Township announced that in 2020, it will build a 145,000 square foot warehouse next to its corporate campus at 4729 S. Division Ave.

Similarly, Art Mulder & Sons Trucking in the Netherlands is also expanding its warehouse and cold storage space. The project is ongoing but has not yet been officially announced.

"This is when we see a lot of growth," Murray said. "I don't know how well-known Western Michigan has a prominent food processing cluster. However, we do have a competitive advantage in this area.... We are really ready to support the growth of food processing."

Although Request Foods’ Abel attributed the company’s accelerated growth to the changing market dynamics of the pandemic, many food companies were ready to expand before the pandemic, but lack the necessary resources to move forward.

Marty Gerencer said she was one of the promoters of the establishment of the Western Michigan Food Processors Association, where she served as executive director.

"There are a lot of companies waiting to expand and waiting for resources to help them achieve their goals," Glenser said. "Lakeshore Advantage, located in central Ottawa County, understands that food is one of the driving forces of their economic development. Not all economic development groups understand this. 

"Part of what we do is to help food manufacturers become a force that cannot be ignored and support their development."

Like traditional manufacturers, food companies usually need a ready site, and many companies need economic incentives that were difficult to obtain in the past. 

However, the country seems to be changing. Gerencer said that since the administration of former Governor Rick Snyder, Michigan has begun to recognize the industry as an important part of the state's manufacturing industry.

Companies in the local food economy rely heavily on incentive programs created by the Michigan Economic Development Corporation. Gerencer points to MEDC CEO Quentin Messer's previous experience as CEO of the New Orleans Business Alliance as an advantage.

"The southern states have fairly robust economic development policies to support food companies," she said. "I think (Messer) will definitely understand it by listening to him."

A series of factors should lead to the continued growth trend of the industry. Although Gerencer can't elaborate yet, she hinted at some future expansion plans, creating an optimistic outlook for the future of the local food industry.

"The world has discovered (during the pandemic) that we need food to survive," Glenser said. "The shortage on Meijer's shelves is not because Meijer has not fulfilled his responsibilities, but because the supply chain is interrupted. The world has the opportunity to see with their own eyes where their food comes from." Danworth Construction's advertising support makes MiBiz Foods / News coverage of the agribusiness section becomes possible. Dan Vos Construction is committed to serving people and improving lives, while maintaining long-term relationships with customers, subcontractors and employees. This advertisement has no influence on MiBiz's editorial considerations.

With the advertising support of Dan Vos Construction Company, news reports on the food/agricultural complex of MiBiz became possible. Dan Vos Construction is committed to serving people and improving lives, while maintaining long-term relationships with customers, subcontractors and employees. This advertisement has no influence on MiBiz's editorial considerations.

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