Food and Beverage Manufacturing Industry In Kentucky

Transcription

1 Food and Beverage Manufacturing Industry In Kentucky

2 The Food and Beverage Manufacturing Industry in Kentucky I. Executive Summary...3 II. Business Cost Comparison...4 III. Labor Cost Comparison...5 IV. Tax Costs...6 V. VI. VII. Business Climate Kentucky s Central Location -- Utility Cost -- Transportation Kentucky Facilities...10 Other Influential Factors State Support -- Research for the Future Information Compiled by: Jessi Carlton Division of Research Kentucky Cabinet for Economic Development May

3 Executive Summary The food and beverage manufacturing industry represents a large portion of the U.S. manufacturing sector. According to the Bureau of Economic Analysis, this industry accounted for almost 11% of the nation s manufacturing gross domestic product in The U.S. Bureau of Labor Statistics describes the food industry and the beverage industry as: Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products. The industry group, Beverage Manufacturing, includes three types of establishments: (1) those that manufacture nonalcoholic beverages; (2) those that manufacture alcoholic beverages through the fermentation process; and (3) those that produce distilled alcoholic beverages. Ice manufacturing, while not a beverage, is included with nonalcoholic beverage manufacturing because it uses the same production process as water purification. In Kentucky, nearly 12% of the manufacturing jobs are in the food and beverage products manufacturing industry. This industry has been successful in the Commonwealth for reasons such as: Low Business Cost Quality Workforce Central Location Rich Agricultural History Kentucky s successful food and beverage manufacturing facilities make significant contributions to the Commonwealth of Kentucky, including: In 2007, Kentucky s food products manufacturing industry represented almost 14% of the manufacturing gross domestic product by state. The Bureau of Economic Analysis reports Kentucky s 2007 gross domestic product by state for the food product manufacturing industry, which includes food, beverage and tobacco manufacturing, as $3,983,000,000. That accounts for 2.2% of the nation s GDP for the food product industry. The combined economic impact direct, indirect and induced of the food and beverage industry generated an estimated $6.6 billion in value added to the Commonwealth s economy. According to the Economic Development Cabinet s Business and Industry database, 184 food and beverage manufacturers have chosen to locate facilities in Kentucky. These companies might have viewed Kentucky as a favorable place of doing business because of the Commonwealth s business climate, workforce, low business cost when compared to other states, central location or rich agricultural history. Kentucky is a state where the food and beverage industry thrives. 3

4 Business Cost Comparison Economists with Economy.com, Inc. (formerly Regional Financial Associates, Inc.) have concluded that relative business costs are the most important long-term determinant of state economic performance. Several business cost indices were developed to compare the relative cost of doing business in each state, and in the District of Columbia. The overall business cost index includes energy costs, tax burdens, and labor costs. While each cost component is estimated for each year, the business cost index uses a three-year moving average. This process ensures a more consistent and reliable estimate of business costs. Kentucky tied as the fifth lowest in overall cost of doing business compared to all states east of the Mississippi River and tied as the fourth lowest compared to states generally considered Kentucky s economic competitors. The index utilized to measure the overall cost of doing business within a state ranks Kentucky tied as the 12 th lowest cost state nationally with an index of 90, 10% less than the national average. (North American Business Cost Review, 15 th Edition, June 2009). Cost of Doing Business: 2007 Competitor States Overall Cost of Doing Business Business Rank Index Unit Labor Cost Cost Index Rank Energy Index Energy Cost Rank State & Local Taxes Tax Index Rank United States Kentucky Georgia Illinois Indiana Michigan Mississippi Missouri North Carolina Ohio South Carolina Tennessee Virginia West Virginia Note: A ranking of one (1) represents the lowest cost. United States Average Cost Index = Source: North American Business Cost Review (2007), 15th Edition, Prepared by Economy.com, Inc.--Updated June

5 Labor Cost Comparison The labor costs for Kentucky employers in the food and beverage manufacturing industry compare favorably to surrounding states. Kentucky s average annual wages are below the U.S. average for all of private industry and manufacturing, while the state s food and beverage manufacturing wages are less than six percent higher than the national average and less than three surrounding states. For all private industry, the average annual wages in Kentucky are lower than all but one surrounding state. The Cost of Doing Business Table (on the previous page) shows that Kentucky is competitive with surrounding and competitor states with respect to the lowest unit labor cost. In the area of workers compensation, Kentucky s workers compensation comparative cost for the manufacturing sector is over two percent less than the national average according to 2009 annual data (Actuarial & Technical Solutions, Inc.). Also, the state was the first with an active benchmarking program that issues data on workers compensation carrier performance. Food & Beverage Manufacturing Industry Wages Kentucky Average Weekly Wages 2008 All Industries $720 Agriculture, Forestry, Fishing and Hunting 571 Mining 1,179 Construction 807 Manufacturing 915 Food & Beverage Manufacturing 820 Trade, Transportation, and Utilities 665 Information 770 Financial Activities 937 Services 631 Public Administration 794 Other F&B Industry Establishments (Kentucky and surrounding states) US 33,123 Illinois 1,641 Ohio 1,116 Missouri 691 Indiana 566 Virginia 531 Tennessee 428 Kentucky 353 West Virginia Average Annual Pay (Kentucky and surrounding states) F&B Manufacturing All Manufacturing All Industries US $40,910 $54,400 $45,563 Illinois* 47,208 56,091 48,719 Ohio* 43,755 51,902 40,784 Tennessee 42,755 48,213 39,996 Kentucky 42,615 47,592 37,434 Missouri* 38,523 49,570 40,361 Indiana* 38,197 52,379 38,403 Virginia 37,163 48,763 47,241 West Virginia* 27,693 47,558 35, F&B Industry Employment (Kentucky and surrounding states) % Total State Employment Employment US 1,649, % Kentucky 29, % Missouri* 40, % Tennessee 36, % Illinois* 77, % Indiana* 33, % Ohio* 53, % Virginia 34, % West Virginia* 3, % Sources: Quarterly Census of Employment and Wages, US Department of Labor, Bureau of Labor Statistics, Annual 2008, May * Beverage employment not included due to disclosure laws. 5

6 Tax Costs Kentucky continues to be ranked as the state with the lowest overall cost of doing business among surrounding and competitor states according to Economy.com. The June 2009 edition of the North American Business Cost Review, 15 th edition, measures the cost of doing business within a state for unit labor cost, tax burden, and energy cost. When compared to the top 10 states for gross domestic product by state for the food products manufacturing industry, Kentucky ranks lowest in per capita state and local property tax and second lowest in state and local tax burdens. Nationally, Kentucky ranks 5 th lowest in per capita state and local government property tax burden, and 13 th lowest in per capita state and government tax burden. Kentucky vs. Competitor States Competitor State Tax Burden: 2006 Per Capita State and Local Government Property Tax Revenue Per Capita State and Local Government Tax Revenue Per Capita National Rank Per Capita National Rank United States 1,204 4,006 California 1, , Georgia , Illinois 1, , Kentucky , Missouri ,139 8 New York 1, , North Carolina , Ohio 1, , Pennsylvania 1, , Texas 1, , Virginia 1, , Source: Morgan Quitno Press State Rankings 2009, using data from U.S. Bureau of the Census, Governments Division. Note: A ranking of 1 represents lowest cost 6

7 Business Climate Kentucky offers a wide range of opportunities for a profitable investment in all business sectors. Kentucky has a strong industrial base of steel, aluminum, chemical, and machinery production, driven by massive resources of water, low-cost electric power, and reasonably priced barge, rail, and truck transportation. The manufacturing base has shown particularly dramatic growth in Kentucky during the past decade. Kentucky ranked 9th in the 2008 Site Selection Governor s Cup awarded annually to U.S. states with the most new and expanded facilities. It has the smallest population of any state in the top 10. Site Selection also ranked Kentucky 10th in the magazine s list of states with the most new and expanded facilities from 2006 to Kentucky also tied for 5 th in another Site Selection award, the annual Competitiveness Award, in May of The Competitiveness Award is based on 10 quantifiable criteria for measuring business expansion activity. To date, thirteen of the Fortune 25 largest U.S. corporations have manufacturing or service facilities in Kentucky -- many have multiple plants in the state. Included are corporate giants such as General Motors, Ford Motor Company, Wal-Mart, General Electric Company, and Citigroup. In addition, 9 of the top Fortune 25 largest global corporations, by revenue also have operations in Kentucky. Foreign enterprises have developed over 393 facilities in Kentucky, providing nearly 76,668 jobs. Included are such international leaders as Toyota, Hitachi, Siemens and Matsushita Electric Industrial. Kentucky s Central Location Kentucky is located in the geographical center of the Eastern United States, which is defined as including states sharing an east or west border with the Mississippi River. Due to its extensive highway, air, rail, and waterway transportation systems, the Bluegrass State is in a strong position to compete in the global marketplace. With its borders within 600 miles of over sixty percent (60%) of the nation s population, personal income, and manufacturing business establishments, Kentucky's intermodal freight and passenger transportation systems extend to provide safe, efficient and cost-effective access to all points of the globe. In 2008, the population center of the United States east of the Rocky Mountains was located 9.7 miles northwest of Harrodsburg, KY. Harrodsburg is located within a 40 minute drive from I-75, I-64, US 27 and US127 which are main arteries to the rest of the eastern section of the United States. Kentucky is at the highway crossroads for the Canada to Florida I-75 route, extending from the Great Lakes to the Gulf of Mexico, and the St. Louis to Norfolk I-64 route, which stretches from the Mississippi River to the Atlantic Seaboard. Domestic and international air travel is served by the Delta and Comair hubs that provide non-stop service to Europe and Canada from their location in Northern Kentucky. International flight connections are available from the Louisville International Airport at Standiford Field and Lexington's Bluegrass Airport. Air cargo services are provided by the United Parcel Service hub at the Louisville International Airport which serves global destinations to over 200 nations and territories. Several other air freight and parcel providers also operate through Kentucky's air system. The 2009 Manufacturing & Logistics Report Card scores Kentucky a grade of A in the Logistics Indsutry category and places Kentucky in the Top Five of all States in the category of Global Position. 7

8 Utility Costs Kentucky enjoys a tremendous competitive advantage in the provision of energy, natural gas, and water supply. Kentucky's electric power costs in the industrial sector ranked the eigth lowest in the nation in Power cost data is based on annual rankings compiled by the U.S. Energy Information Administration, which have consistently placed Kentucky among the eight lowest cost industrial electric power states since Kentucky's natural gas costs in the industrial sector are extremely competitive, particularly within the Midwest and the Southeast regions of the nation. An extensive surface water network of rivers, streams, and lakes, complemented by the ground water supplies that are very pronounced in certain regions of the state, guarantee an ample supply of water for industrial use. A globally competitive business environment compels companies to examine the long-term costs of production and distribution, and to focus on regional differences in the net costs of doing business. Among the most significant factors having a direct influence on bottom-line costs is the annual capital that must be committed to utility consumption. Kentucky occupies a premier position in the provision of low cost electric power when compared to all other states enjoying almost a 30% cost savings over the national average. INDUSTRIAL SECTOR COSTS Average Revenue Per Kilowatthour National Average Tennessee Ohio Virginia 5.8 Indiana 5.5 Missouri KENTUCKY Illinois 4.5 W est Virginia Cents Per KH (2008) Kentucky currently has the 3 nr least expensive electric power east of the Mississippi River and is among the top food and beverage manufacturing states. Over ninety percent of Kentucky's electric power is produced by coal-fired power plants, with the balance generated by hydroelectric dams, fuel oil, and natural gas. Kentucky's large coal reserves ensure abundant supplies of electric power for the foreseeable future. In turn, a large number of utility providers, and oversight by the Kentucky Public Service Commission (PSC) ( continue to ensure competitive rates for industrial users. These power distributors are allowed to negotiate lower economic incentive rate contracts with large industrial and commercial customers, subject to approval by the Kentucky PSC. Significant discount rates can be granted for up to five years for both new and expanding operations. 8

9 Transportation Located within a 600-mile radius of 67 percent of the nation s population and personal income, Kentucky maintains a continuing six year highway construction and improvement plan that ensures necessary structured growth and regular maintenance. The backbone of the Commonwealth's 79,000 miles of federal, state, and local roads is five major interstate highways which provide direct routing to the Great Lakes and Canada, the Gulf States and Florida, the Atlantic Seaboard, and St. Louis and points west. Within the state, nine major parkways/highways provide access to the interstate system, while state maintenance covers nearly forty percent of the entire highway network. Most of the nation's major trucking companies have terminals in Kentucky. There are over 500 trucking terminals throughout the state. A total of 52 cities are served by at least one terminal location. In addition, the accelerated growth of intermodal truck-rail and truckbarge facilities and state-of-the-art cargo tracking practices by the motor carrier industry, make Kentucky a competitive, cost-effective participant in today's global economy. A freight distribution network that is efficient, safe, and technologically competitive makes Kentucky an ideal location for businesses needing just-in-time delivery and reliable access to markets and suppliers. Accessibility to modern major airport services, and safe, efficient air travel for business purposes, are well addressed by Kentucky's statewide system of commercial and general aviation airports. International flights depart from the Cincinnati/Northern Kentucky International Airport. Flights with international connections depart from the Louisville International Airport at Standiford Field in Louisville/Jefferson County, and from the Blue Grass Airport in Lexington, Kentucky. Kentucky s airports can compete with any in the world. The March 2008 issue of Air Cargo World listed the top 40 cargo airports of North America in 2007 (in tonnage). The Louisville International Airport ranked 3rd and the Cincinnati/Northern Kentucky International Airport ranked 31st. The March 2006 issue of Air Cargo World ranked the top 50 cargo airports in the world, with Louisville International Airport ranking 10th. Kentucky is a rail center for the mainline services of the CSX, Canadian National, and Norfolk Southern railroads that provide services from the Great Lakes gateways to the Gulf of Mexico and link intermodally with inland and deep-draft ports for export trade. Western Kentucky is the heart of the nation's inland waterways and river port system, standing at the junction of the Upper and Lower Mississippi River, the Ohio River, and the Tennessee- Tombigbee navigation corridors. Kentucky is the center of a port and waterways system that offers globally competitive, inexpensive year-round freight transport for bulk materials and containerized freight. At the hub of the nation's inland waterways, Kentucky's ports and terminals provide direct access to the agricultural markets of the Midwestern and North Central states, to the industrial and consumer markets of the Northeast, and to New Orleans, Mobile, and the Gulf of Mexico for distribution to the South. With its access to the junction of the Upper and Lower Mississippi, Ohio, and Tennessee-Tombigbee navigation corridors, Kentucky has a waterway link to the Great Lakes and Canada, to Mexican and South American markets, and to the deep-draft ports of New Orleans and Mobile for shipments overseas. In addition to these major waterway corridors, barge traffic within the state is handled on the Big Sandy, Cumberland, Green, and Licking Rivers. In its seventh annual Logistics Quotient, Expansion Management magazine listed two Kentucky metropolitan areas as being very logistics friendly. The Louisville and the Northern Kentucky/Cincinnati areas were designated as 5 Star metros, indicating they scored in the top twenty percent of the nation s 362 metropolitan areas. Evansville/Henderson was ranked as the number five metropolitan area in the nation for Transportation and Warehousing Work Force category. The purpose of the category is to gage the depth and cost of the metropolitan transportation and warehousing work force. The Louisville metro area ranked 10th in the nation for Best Air Cargo Capacity according to the U.S. Department of Commerce. The strength of Kentucky s transportation advantage is evident in the broad choice of prime air, rail, and interstate highway-served business sites: 122 sites within 50 miles of a commercial airport 70 sites with rail service possible 148 sites within 10 miles of an interstate highway or parkway 23 sites within 10 miles of a public river port By highway, river, rail, or air, Kentucky offers unique advantages for transportation, distribution, and export, and provides new opportunities for capitalizing on North American markets and global trade. The increasing level of partnership among trucking, rail, and other shipping firms, and the development of efficient, integrated transportation systems throughout the industry, places the Bluegrass State in the position to become a 21st century leader in global transportation opportunities. 9

10 Kentucky Facilities Interesting Kentucky Companies in the Food and Beverage Manufacturing Industry Within the Commonwealth of Kentucky there are many business success stories. And a large group of these success stories are manufacturing facilities and companies in the Food and Beverage industry. Some of the larger companies that produce products in Kentucky through direct manufacturing or contracting services are Kellogg s, Dean Foods, Swift, Tyson Foods, Schwan Foods, T Marzetti, JM Smucker and Nestle s. Below are several of the unique companies Kentucky is proud to have located within the state and some of the products these companies manufacture. Ale 8 1 This soft drink unique to Kentucky has been bottled in Winchester since Papa John s Pizza With corporate headquarters in Louisville, Papa John s boasts over 3,000 restaurants and 16,000 employees worldwide. Bourbon Kentucky is home to several distilleries and the state produces 90 to 95 percent of the world's bourbon supply. Proctor and Gamble Facility in Lexington that produces JIF, America s favorite peanut butter. Dippin Dots This tiny-beaded flash-frozen ice cream that has been dubbed the Ice Cream of the Future is manufactured in Paducah. Tyson Foods, Inc. America s largest meat packer has a chicken packaging facility in Robards. Kellogg Snacks Bakes goods for Keebler in Florence. Nestle s Nestle Prepared Foods in Mt. Sterling is one of only a few facilities in the United States that manufactures Hot Pockets and Lean Pockets. Kellogg (Pikeville Plant) - Manufactures Poptarts, one of America s favorite breakfast foods in Pikeville. Bel/Kaukauna USA - This French company located in Leitchfield manufactures cheese for The Laughing Cow. Winchester Farms Dairy Produces milk for Kroger, America s largest grocery chain. 10

11 Over the past five years, Kentucky s food and beverage manufacturing industry has expanded. During this time, the Economic Development Cabinet s database of business and industry reports 117 food and beverage manufacturing facility locations or expansions resulting in 3,586 new jobs for the Commonwealth. These 117 locations/expansions account for 7.7% of the state s new and expanding industry announcements during the past five years. Many of these companies not only contribute to Kentucky s economy but become nationally recognized. Fortune magazine s March 2008 issue named Louisville-based Yum! Brands Inc. as one of America s Most Admired Companies. Out of 622 companies in 65 industries, Yum! Brands ranked third in the food-service industry. The January 2008 issue of Fortune ranked J.M. Smucker 47 th in its list of the 100 Best Companies to work for. For seven out of the last nine years, Papa John's was the top rated national pizza delivery and take-out chain in Restaurants & Institutions' Choice in Chains consumer survey. In 2005 Dippin' Dots Franchising, Inc. ranked 1 st on Franchise Times Magazine's Fast 55 list of the fastest growing young franchises in the nation. The November 2003 issue of Site Seleciton listed three Kentucky projects in the Top 20 Food Processing Projects of 2003: Mother s Cookie Company in Louisville was 10 th, Martek Biosciences Corp. in Winchester was 11 th, and T. Marzetti Company in Horse Cave was 17 th. Foreign Owned Food & Beverage Manufacturing Facilities Boone Jefferson Anderson Woodford Montgomery Daviess Grayson Christian Place County Facility Name Product or Service Parent Company Location Erlanger Boone Perfetti Van Melle USA Inc Soft candy, headquarters Italy Florence Boone Givaudan Flavors Corp Food flavorings Switzerland Hopkinsville Christian Hubbard Feeds Inc Livestock feed blending & mixing Canada Lawrenceburg Anderson Four Roses Distillery LLC Bourbon, distilled spirits Japan Lawrenceburg Anderson Rare Breed Distilling LLC Distilled spirits Italy Cream, processed cheese spreads, semi-soft cheese, pimento spread, Leitchfield Grayson Bel USA Inc Mini Babybel. France Wine and vinegar (added storage Louisville Jefferson Mizkan Americas Inc tanks and process equipment) Japan Louisville Jefferson SunOpta Ingredients Oat fiber products Canada Mt. Sterling Montgomery Nestle Prepared Foods Specialty microwaveable sandwiches Switzerland Charles Medley Owensboro Daviess Distillers Kentucky Production of bourbon whiskey Trinidad and Tobago Owensboro Daviess Specialty Foods Group Inc Processed meat products Canada Owensboro Daviess Unilever Foods Pasta sauces and frozen foods Netherlands Versailles Woodford McCauley Brothers Inc Horse feed & supplements 11 Canada

12 Kentucky Food & Beverage Manufacturing Facilities (184 facilities, 30,951 employees) Place County Facility Name Product or Service Employment Albany Clinton Equity Group - Kentucky Division LLC Fresh & frozen poultry 1541 Alexandria Campbell Sara Lee US Foods Sausage & hot dogs, deli meats 670 Ashcamp Pike Mother Nature Springwater Bottled water 14 Ashland Boyd The Hyland Co Inc Pet food 20 Bagdad Shelby Bagdad Roller Mills Inc Grain merchandising 18 Bardstown Nelson Barton Brands Ltd Dried grain & whiskey distillation 180 Bardstown Nelson Boone's Abattoir Inc Ham, sausage, bacon & meat slaughtering & processing 25 Bardstown Nelson Flowers Foods Inc Producer and marketer of packaged bakery foods 100 Bardstown Nelson Heaven Hill Distilleries Inc Whiskey & distilled spirits bottling, headquarters 405 Bardstown Nelson Kentucky Bourbon Distillers Bourbon whiskey 20 Benton Marshall Miller's Country Hams Inc Country hams 1 Seasoned flour, marinades and rubs, spices and seasoning blends, seasoned coatings, batters, breaders for red meat, Bloomfield Nelson Blend Pak Inc poultry, and seafood, gluten free products 25 Boston Nelson Jim Beam Brands Co Dried grain, whiskey & bourbon distillation 57 Bowling Green Warren Country Oven Bakery Frozen dough, cakes, iced cakes, par baked rolls 450 Bowling Green Warren Hill's Pet Nutrition Inc Pet food (canine and feline) 192 Mexican salsas, barbeque steak sauces, chocolate & pancake Buckner Oldham Carriage House Companies Inc syrups, jams & jellies 350 Butler Pendleton Griffin Industries Inc Meat meal; tallow & grease rendering; cookie meal, bio-diesel fuel 85 Caneyville Grayson Otis Bryant & Son Inc Feed grinding & mixing, dry grain 30 Headquarters, dried grain, vodka & bourbon whiskey distillation; Clermont Bullitt Jim Beam Brands Co cordial cocktails, bottling, shipping 373 Clinton Hickman Harper's Country Hams Inc Smoked ham, bacon & sausage, barbecued pork & ribbs 74 Pepsi-Cola Bottling Co of Corbin Whitley Corbin Kentucky Inc Soft drinks 230 Covington Kenton Glier's Meats Inc Meat processing & sausage products 18 12

13 Place County Facility Name Product or Service Employment Covington Kenton White Castle Distributing LLC Burger processing & packaging 85 Crescent Springs Kenton Blue Grass Quality Meats Sausage & smoked meats 98 Crittenden Grant Dinovite Pet food 30 Cromwell Ohio Perdue Farms Inc Chicken slaughtering, processing & packaging 1273 Danville Boyle Burkmann Industries Inc Animal feed, corporate headquarters 40 Danville Boyle Elements Enterprises LLC Hand rolled beeswax candles. Produce wine & wine related products (wine, jelly, etc.) 4 Danville Boyle Ferm Solutions Manufactures and markets fermentation products including yeast, antibacterial products to improve fermentation for the ethanol and beverage industry. 13 East Bernstadt Laurel Truitt Bros Inc Produce thermally processed shelf-stable meals. 112 Erlanger Kenton Dixie Dew Products Co Inc Ice cream toppings, syrups, chocolate drink powders & shake bases, sauces, flavorings & glazes, icings, spice blends, bread mixes, fruit dips, tomato base sauces, chocolate 15 Erlanger Kenton Perfetti Van Melle USA Inc Soft candy, headquarters 194 Erlanger Kenton United Dairy Farmers Manufacturer of ice cream and dairy products. Third party refrigerated and frozen warehouse and distribution services. 90 Erlanger Kenton Wild Flavors Flavor manufacturing for food and beverage industry 9 Headquarters, administration, research and development, pilot Erlanger Kenton Wild Flavors Inc plants and manufacturing 436 Finchville Shelby Finchville Farms Country Hams Country ham & seasoned bacon processing & packing 13 Headquarters, marketing/sales, manufacture livestock nutritional Flemingsburg Fleming 4 Seasons Marketing supplements 40 Florence Boone Emerson Bakery Baked goods 18 Florence Boone Givaudan Flavors Corp Food flavorings 120 Florence Boone Graeter's Ice Cream Manufacture of and distribution of ice cream. Distribution of candy 7 Florence Boone Kellogg Snacks Cookies 160 Schwan's Global Supply Chain Florence Boone Inc Frozen pizzas 1075 Fountain Run Monroe CPC Commodities LLC Animal feed 100 Frankfort Franklin Buffalo Trace Distillery Distiller of world class and award winning bourbons and American whiskeys. 318 Frankfort Franklin Jim Beam Brands Co Distilled liquor bottling 259 Frankfort Franklin Rebecca Ruth Candy & Tours Liquored, soft & chocolate candy, factory tours; Headquarters 25 Equity Group - Kentucky Franklin Franklin Division LLC Poultry hatchery / feed mill 120 Fulton Fulton Turner Holdings LLC Milk and milk containers. 100 Southern States Georgetown Georgetown Scott Cooperative Inc Feed & fertilizer mixing & blending 29 Glasgow Barren Bluegrass Dairy and Food LLC Dehydrated dairy and non dairy ingredients, custom spray drying and dry blending; cheese manufacturing 82 Glasgow Barren Burkmann Feeds LLC Livestock feed 50 Grayson Carter Smithfield Packing - Grayson Plant Hams, pork chops 640 Greenville Muhlenberg Gourmet Express LLC Manufacture frozen skillet meals 115 Manufacture ready-to-eat meals, provider of turnkey product development and manufacturing services for large branded food Hebron Boone The Wornick Company companies. 700 Henderson Henderson ADM Alliance Nutrition Livestock feed 13 Henderson Henderson Azteca Milliing LP Milled Mexican corn flour 72 Henderson Henderson Bakery Feeds Inc Poultry feed supplements 29 Hickory Graves Pilgrim's Pride Poultry processing & packing 1400 Dry mix food products such as pancake, brownie, and muffin Hopkinsville Christian Continental Mills Inc mixes 186 Hopkinsville Christian Hampton Meat Processing Meat processing 37 Hopkinsville Christian Hopkinsville Elevator Co Grain processing 40 13

14 Place County Facility Name Product or Service Employment Hopkinsville Christian Hopkinsville Milling Co Inc Wheat flour, corn meal & grits 5 Hopkinsville Christian Hubbard Feeds Inc Livestock feed blending & mixing 10 Hopkinsville Christian Siemer Milling Co Mills flour to customer specification for a variety of flour mixtures 36 Sister Schubert's Homemade Horse Cave Hart Rolls Inc Manufacture, package and distribute frozen yeast rolls 153 Horse Cave Hart T Marzetti Company Salad dressing and sauce production facility 256 Kimper Pike Kellogg-Pikeville Plant Convenience foods: breakfast & snack bars 393 La Grange Oldham Safai Enterprises Inc Roaster, packager, and distributor of specialty coffee products 15 Lawrenceburg Anderson Algood Food Company Jellies, jams, preserves 27 Lawrenceburg Anderson Bauer's Candy Modjeskas (homemade caramel covered marshmallows) 10 Lawrenceburg Anderson Four Roses Distillery LLC Bourbon, distilled spirits 46 Lawrenceburg Anderson Glo Marr Products Inc Animal healthcare products & vitamin supplements 18 Lawrenceburg Anderson Rare Breed Distilling LLC Distilled spirits 98 Cream, processed cheese spreads, semi-soft cheese, pimento Leitchfield Grayson Bel USA Inc spread, Mini Babybel. 329 Lexington Fayette Clem's Refrigerated Foods Meat processing and refrigerated and frozen food distribution 25 Lexington Fayette Farmers Feed Mill Inc Animal feed 25 Lexington Fayette Fresh Approach Sheltered workshop: process & pack fresh fruits & vegetables 42 Lexington Fayette Home City Ice Co Inc Packaged ice 10 Lexington Fayette Jif Plant Peanut butter 200 Lexington Fayette Kinetic Technologies LLC Headquarters, researches and manufactures equine and companion animal health products. 12 Laura's Lean Beef Company Lexington Fayette Inc Headquarters 76 Lexington Fayette Lexington Brewing Co Inc Beer and whiskey distillation 6 Lexington Fayette Old Kentucky Chocolates LLC Hard & soft bourbon, chocolate & miscellaneous candies 25 Lexington Fayette Pepsi-Cola Bottling Co Carbonated soft drink bottling 210 Lexington Fayette Sharp's Candies Inc. Chocolate candy 6 Central Kentucky Custom Custom slaughter cattle and hogs, deer processing, USDA Liberty Casey Meats inspected meats. 7 London Laurel Flav-O-Rich Milk processing, ice cream mixes, milk & orange juice packaging 246 London Laurel Flowers Bakery of London LLC Doughnuts & honey buns 450 London Laurel Laurel Cookie Factory Cookies, crackers & potato chips 565 London Laurel Sara Lee Bakery Group Bread, buns & rolls & sales office 170 Loretto Marion Maker's Mark Distillery Inc Bourbon whiskey 74 Louisville Jefferson Adam Matthews Inc Cheesecakes, headquarters 15 Louisville Jefferson Algood Food Co Peanut butter, jams, jellies and preserves 170 Louisville Jefferson Blendex Co LLC Breading, seasonings & marinades 56 Louisville Jefferson Brown-Forman Corp Distilled spirits, wooden barrels, headquarters 837 Manufacture fully prepared frozen foods - such as soups, entrees, Louisville Jefferson Culinary Standards Corp side dishes, chilis, etc. 100 Louisville Jefferson Custom Food Solutions Processed food provider and manufacturer 35 Louisville Jefferson D D Williamson & Co Inc Liquid & powdered caramel coloring & food ingredients 47 Louisville Jefferson Dawn Food Products Inc Pie filling, icing, doughnut glazes & dry mixes 225 Louisville Jefferson Dean Milk Co Cottage cheese, milk & orange juice 272 Louisville Jefferson Dupont Soy Polymers Isolated soy protein and soy protein polymers 61 Louisville Jefferson Early Times Distillers Co Whiskey 30 Louisville Jefferson Ermins Bakery Bakery products 16 Louisville Jefferson Fishmarket Inc Fish processing, meat processing, food processing 17 14

15 Place County Facility Name Product or Service Employment Louisville Jefferson Flavorcraft LLC Manufacturer of sauces, salsa, marinades, salad dressings and importer of olive oil. Syrups, beverages, and concentrates, rubs and spices. 18 Louisville Jefferson Golden Brands LLC Edible oils & shortening 90 Louisville Jefferson Heaven Hill Distilleries Inc Bourbon liquor distillation/warehouse 45 Louisville Jefferson Home City Ice Packaged ice 10 Louisville Jefferson JBS Pork processing 1350 Louisville Jefferson john conti Coffee Co Roasted speciality coffee and premium tea, distribute & roast coffee and tea 60 Louisville Jefferson Kent Feeds Inc Blended & mixed livestock feed 14 Louisville Jefferson Krispy Kreme Doughnut Corp Doughnuts 54 Louisville Jefferson Luv Yu Bakery Inc Manufactures and distributes cookies, snacks, and seaweed 4 Louisville Jefferson Mattingly Foods of Louisville Meat processing & food service distribution 85 Louisville Jefferson Mesa Foods Inc Manufactures Flatbread and Mexican Foods products in both Wheat Flour and Corn Flour varieties. 181 Louisville Jefferson Mizkan Americas Inc Wine and vinegar (added storage tanks and process equipment) 11 Louisville Jefferson Mother's Cookie Co Various cookie products, including branded labels, private label, and ingredients. 535 Louisville Jefferson Papa John's International Corporate office and commissary 640 Louisville Jefferson Paradise Tomato Kitchens Customized tomato products for foodservice. Hot sauce, teriyaki and garlic sauces, ranch dressing; 136 Louisville Jefferson Producer Feeds LLC Animal feed 15 Louisville Jefferson Pro-Liquitech International Researches, creates, develops and manufactures beverages for clients worldwide. We offer product development services, beverage support services 16 Louisville Jefferson R C Bigelow Inc Tea processing & packaging 90 Louisville Jefferson Ralcorp Frozen Bakery Products Blended flour; biscuit, hot cake, ready-to-bake food mixes, & frozen breakfast products 382 Louisville Jefferson RC Canada Dry Bottling Soft drink bottling 230 Louisville Jefferson Shuckman's Fish Co and Smokery Inc Fish processing and smoking 6 Louisville Jefferson SunOpta Ingredients Oat fiber products 28 Louisville Jefferson Tova Industries LLC Manufacturer of soup bases, sauce & gravy mixes, beverage bases, gelatin & pudding mixes, cake & bakery mixes, spices, syrups, flavorings, breadings, seasonings. 55 Louisville Jefferson White Castle Distributing LLC Frozen hamburger sandwich processing & distribution 183 Louisville Jefferson Wynn Starr Foods of KY Food flavorings 61 Madisonville Hopkins Land O'Frost Inc Pre-packaged lunchmeats 64 Madisonville Hopkins UC Milk Co LLC Liquid milk, cultured buttermilk, fruit juices & plastic milk jugs 154 Middlesboro Bell Middlesboro Coca-Cola Bottling Carbonated soft drinks and water & bottling 120 Middlesboro Bell Smithfield Middlesboro Smoked ham & sausage processing 575 Midway Woodford Weisenberger Mills Inc Flour, corn meal & baking mixes 5 Morganfield Union Custom Feed Mill LLC Livestock feed 13 Morgantown Butler Green River Feed Mill Inc Feed & fertilizer mixing & blending 12 Mt. Sterling Montgomery Nestle Prepared Foods Specialty microwaveable sandwiches 985 Mt. Sterling Montgomery Ruth Hunt Candy Co Chocolate, creams & novelties, chocolate bars, bourbon chocolates, Woodford Reserve bourbon confections, Blue Monday chocolate bar. 20 Murray Calloway Ellis Popcorn Co Inc Popcorn processing 11 Murray Calloway Kenlake Foods Powdered beverages, hot cereal & salted nut products 331 Murray Calloway Morningstar Single serve-flavored milk in plastic bottles, private packaging, nondairy flavored creamers 261 Newport Campbell Dixie Chili Inc Chili 16 15

16 Place County Facility Name Product or Service Employment Newport Campbell Louis Trauth Dairy LLC Nicholasville Jessamine Alltech Inc Fluid milk, cottage cheese, ice cream, fruit drinks, orange juice & ice cream mixes 275 Natural animal feed additives and brewing & distilling products - Corporate headquarters 300 Owensboro Daviess Charles Medley Distillers KY Production of bourbon whiskey 28 Owensboro Daviess Constellation Spirits dba Sazerac North America Whiskey, gin, vodka, wines, brandy & cocktail bottling 185 Owensboro Daviess Owensboro Grain Company LLC Soybean crude oil & meal, biodiesel 159 Owensboro Daviess Owensboro Grain Edible Oils Refined vegetable oil 26 Owensboro Daviess Sara Lee Bakery Group Breads & rolls 150 Owensboro Daviess Specialty Foods Group Inc Processed meat products 450 Owensboro Daviess Unilever Foods Pasta sauces and frozen foods 445 Owenton Owen KHI Foods Inc Wholesale food manufacturer 32 Owingsville Bath Custom Food Products LLC Meat processing & packing 140 Paducah McCracken Dippin' Dots Inc Ice cream, yogurt, sherbets, and flavored ices. Headquarters, franchise sales and support. 169 Park City Barren Southern States Cooperative Inc Animal & poultry feed 27 Pine Ridge Wolfe Halsey Meat Processing Beef, pork & venison meat processing 6 Princeton Caldwell Bremner Inc Cookies & crackers 646 Richmond Madison Uncle Charlie's Meats Inc Meat processing & packaging and distribution 56 Robards Henderson Tyson Foods Inc Chicken slaughtering, processing & packaging 930 Russellville Logan Griffin Industries Inc Tallow by-products, animal hide, processed meat & bone meal 88 Sacramento McLean Miles Farm Center/Plt 3 Feed & fertilizer mixing & blending 7 Scottsville Allen Clifty Farm Tennessee Valley Ham Co Country hams 16 Scottsville Allen J M Smucker LLC Frozen food products, distribution, and R&D center 282 Sebree Webster Tyson Foods Feed Mill Poultry feed manufacture and distribution. 26 Simpsonville Shelby Purnell Old Folks Sausage Inc Sausage products, headquarters 240 Somerset Pulaski Southern Belle Dairy Co LLC Liquid milk, juice drinks, and 100% orange juice from concentrate 235 Springfield Washington Alltech Inc Spray drying operation natural animal feed additives 32 Springfield Washington Bluegrass Dairy and Food Dairy & food products 75 Uniontown Union Fresh Meal Solutions Inc Manufacture fresh dinner entrees in individual trays. 70 Uniontown Union Jim David Meats Meat processing, wholesale, retail 20 Uniontown Union Little Kentucky Smokehouse Process hams and meat products 70 Versailles Woodford McCauley Brothers Inc Horse feed & supplements 41 Versailles Woodford Woodford Feed Co Inc Feed & fertilizer grinding, mixing & blending 36 Versailles Woodford Woodford Reserve Distillery, Labrot & Graham Proprietors Distilled liquors 20 Walton Boone Davis Creek Meats & Seafood LLC High quality portion control beef products 31 Walton Boone Lyons Magnus East Pancake syrup & beverage bases 70 Willard Carter Willard Milling Inc Pet food mixing and blending 13 Wilmore Jessamine High Bridge Spring Water Inc Bottled distilled water & reverse osmosis drinking water 27 Winchester Clark Ale 8 One Bottling Co Soft drinks 75 Winchester Clark Martek Biosciences Corp Food additives 101 Winchester Clark Pepsi-Cola Bottling Co Soft drinks 118 Winchester Clark Southern States Cooperative Inc Mixed animal & poultry food 37 Winchester Clark Winchester Farms Dairy Fluid milk, orange juice, cottage cheese, sour cream & yogurt & other fruit drinks

17 Other Influential Factors State Support The agriculture industry is a driving force behind the food and beverage manufacturing industry. Kentucky has historically maintained an active agricultural industry. According to the 2007 Census of Agriculture, released by the United States Department of Agriculture, Kentucky is home to 85,260 farms, ranking the state 5 th in the nation for number of farms. These farms cover 13,993,121 acres, or 54% of the state s total acreage. The average farm in Kentucky is 164 acres. Because of this strong agriculture base, the state s Department of Agriculture administers many programs that promote local businesses in the food and beverage industry. The Kentucky Department of Agriculture s Division of Value-Added Plant Production and other agriculture leaders recognized a need for infrastructure development and marketing assistance for fruit and vegetable growers across the Commonwealth. These issues are two of the largest problems facing farmers wanting to diversify their operations. In 1998, three new produce marketing facilities opened their doors, allowing farmers access to mass markets by pooling product to create a larger volume of high quality produce. This increased the number of such facilities from one to four across the Commonwealth. Currently the Central Kentucky Grower s Association, Inc., Cumberland Farm Products, Inc., Green River Produce Marketing Association and West Kentucky Growers Cooperative are all available to assist farmers. The Kentucky Proud Market is located at Here you can find items produced fresh throughout the state. The Division of Agriculture Marketing & Agribusiness Recruitment assists Kentucky food manufacturers, farmers, agricultural businesses and Kentucky agricultural commodity groups with the marketing and promotion of their products. The office endeavors to expand existing and traditional markets and develop new markets, both on a domestic and international level. For more agricultural information, please visit the Kentucky Department of Agriculture website: 17

18 Research for the Future The University of Kentucky College of Agriculture conducts research, as well as provides education, of agricultural issues. The University s Kentucky Agricultural Experiment Station has been providing research results to farmers and rural residents for more than 130 years. With external grants and contracts now reaching $31 million a year, UK s College of Agriculture researchers also address problems of agribusiness, consumers, international trade, food processing, nutrition, community development, soil and water resources, and the environment with over 300 externally funded projects. The research continuum reaches from basic to applied science, with new fundamental knowledge as well as applied knowledge that has impacts on the lives of Kentuckians and people across the world. The Experiment Station encompasses all research activities of the College of Agriculture conducted on the Lexington campus, as well as across the state: Campus (Fayette County): laboratories and specialized equipment for all research program areas. Coldstream, Maine Chance, Spindletop Farms (Fayette County): beef and dairy cattle, poultry, horses, sheep and swine; forages and grain crops, tobacco, and turf. UK Animal Research Center (Woodford County): purchased in late 1991 for development of state-of-the-art food animal research programs. The farm is in Phase I of development as a research facility. Research and Education Center and West Kentucky Substation Farm (Caldwell County): grain crops, beef cattle, swine, fruits and vegetables, forages, and tobacco. Robinson Station (Breathitt County): fruits and vegetables, ornamentals, forages, grain crops, tobacco, and wood utilization. Also headquarters of Robinson Forest, which covers parts of Breathitt, Perry, and Knott counties and is the site of forestry and watershed management research. Eden Shale Farm (Owen County): experimental and demonstration studies on forage crops, tobacco, fruits and vegetables, and beef management. New Crop Opportunities Center: supports research on specialty crops, offers electronic and printed educational materials, and provides on-farm demonstrations of selected crops. With the spirit of cooperation that has existed since the creation of the Experiment Station in 1865, research faculty also conduct dozens of trials on farms and at other sites throughout the Commonwealth. 18