Dairy and Distribution Lead California's Food & Beverage Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking more than $1.7 billion in active investment projects in California's Food and Beverage Industry. California is well-known for its dairy and cheese processing and wineries, as well as a growing microbrewery industry.

Click on the image at right for a chart detailing investments in California's Food & Beverage Industry by segment.

California's dairy and cheese processing sector is primarily located in the Central Valley, spanning more than 200 miles from Bakersfield to Stockton. Dairy-related projects make up more than 31% of California's total food and beverage investment. Industrial Info is tracking more than $558.1 million in capital investment for the dairy and cheese industry, including many grassroot processing plants. This includes Hilmar Cheese Company, which is investing about $100 million in an evaporated milk processing plant. The plant will serve both domestic and global markets, primarily China. This project highlights a growing trend for higher dairy exports to China, and California is strategically located to take advantage of this trend.

More than 20% of California's investment spending has been directed to the distribution and warehousing sector. Industrial Info is tracking $356.6 million in investments. One such company, Linage Logistics LLC, is employing a promising innovation. Linage Logistics is investing $75 million in a new distribution center in Long Beach. With a new, ultra-low ammonia refrigeration system by NXTCold Company, the distribution center will use 96% less ammonia at lower costs than conventional methods.

An official from Controlled Environments Construction Incorporated told Industrial Info that "there is no catch" with the ultra-low ammonia refrigeration system. Only about 2% of chemical ammonia is used for refrigeration in the U.S. As such, it is unlikely to have a significant impact on ammonia production, but the system is more environmentally friendly.

Industrial Info is tracking $335.25 million in projects related to the winery sector, which account for nearly 20% of California's food and beverage investments. By far, the largest upcoming winery project is an addition to a Trinchero Family Estates bottling facility. Trinchero Family Estates is investing $120 million to construct a 350,000-square-foot facility addition with new bottling lines.

Industrial Info is tracking $139 million in projects in California's fruit, vegetable and nut segment. Despite the state's historic drought, Paramount Citrus is investing $45 million in its Delano fruit-processing facility.

New microbrewers have been emerging all across the U.S., and California is no exception. Industrial Info is tracking $64 million in brewery sector projects. California brewers continue to gain national recognition. Based in San Diego, Stone Brewing Company has been highly successful and plans to select a site for an East Coast expansion.

About 30% of the projects that Industrial Info is tracking in California are new grassroot facilities; of that 30%, nearly 60% are in manufacturing facilities and about 40% are cold storage, warehouse or distribution center projects.

Another 30% of California projects are facility expansions, while 11% are equipment upgrades or replacements, and 10% are maintenance programs. The remaining 19% are split among relocations, renovations, closures, conversions and other projects.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.