Midwest Manufacturing Expands

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Can the Pickleverse Accommodate Another Pickle Plant?

Irresistible Food Group (IFG), owner of both King’s Hawaiian and Grillo’s Pickles, has selected Columbus, Indiana, for its new pickle plant. As the pickle hub of the country, Michigan, Indiana, and Illinois already house major pickle manufacturers like Claussen, Heinz, Sechler’s Pickles, and Great Lakes Pickling Company. Can the region support yet another pickle manufacturing plant, or was IFG wrong to move the Boston-born brand into the heartland?

The $54 million scale-up is more than just a big construction project. Grillo’s isn’t just choosing a good-looking plot of land in Indiana. They are choosing strategic partnerships with area farmers, a skilled labor force, existing transportation infrastructure, and room to grow; factors that continue to make the Midwest a prime choice for food manufacturing in the U.S. and stand to bring economic resilience to the area.

Finding the Ideal Labor Force

IFG’s location selection is rooted in the Midwest’s population of skilled farmers and laborers. As the Pickleverse, the Midwest has drawn cucumber farmers who have relocated their operations to support the pickling industry. Strategic support of each other has made strong relationships between farmers and manufacturers, ensuring that jobs are available and expansion is possible. Grillo’s should have easy access to farms full of cucumbers and workers with the skills to transform them into one of America’s favorite snacks.

Similarly, the Midwest represents a strong manufacturing sector of the country where it is relatively easy to find skilled laborers who require minimal training to efficiently perform jobs. It’s a financial win for employees and employers alike.  Companies like IFG don’t have to invest outrageous amounts of money to train their employees and can instead offer more competitive wages. It's a relationship that is lucrative for Columbus, Indiana, which stands to gain economically if more well-paying jobs move to the area. Grillo’s already claims 7.7% of the pickle industry and has grown from a snack stand in the Boston Commons to a booming business with over $28 million in sales annually.

An Affordable Partnership

Midwestern states have long been prime real estate for food manufacturing. Not only do these states typically offer lower prices per acre for land in comparison to East and West Coast states, but they are also home to some of the best arable land in the country. Grillo’s Pickles will erect their new facility in the heart of the nation's cucumber farming industry. The central location concerning both cucumbers and consumers is an attractive element for the company, which would have to pay more to transport cucumbers to California or Massachusetts and then ship, in a cold truck, as their product demands, to stores across the country.

Grillo’s is also supported by the Indiana Economic Development Corporation, which has committed $2.7 million to road improvements as well as sewer and water upgrades, $400,000 for infrastructure development, and $200,000 in workforce development grants for the King’s Hawaiian facility, which is currently under construction on 88 acres next to the Grillo’s property. Each of these investments is strategic, as IFG initially chose the Columbus, Indiana area with its other brands in mind as well. The partnership stands to bring 300 jobs to the community just by hiring personnel for both plants, with the promise of continued infrastructure improvements to supply future jobs as well. 

Room to Grow

Will Grillo's arrival in Indiana create competition in the pickle sector, or will the fast-growing brand only add stability to the region? 

Growing from $1 million in sales in 2018 to over $25 million just ten years later, Grillo’s is making its mark on the industry. Unlike many of the pickle brands produced in the Midwest, Grillo’s pickles are made cold and sold refrigerated. They claim a significant percentage of the refrigerated pickle industry and have strong ties with retailers Whole Foods, Walmart, and they can even be purchased through Amazon. A move to the Midwest strategically positions Grillo’s to create competition for other refrigerated brands like Claussen and Bubbies.

In general, Midwestern states have experienced a decline in manufacturing across multiple industries, and economists wondered if the region would ever again experience the business boom it once had. IFG’s investment in the Midwest over coastal manufacturing cities is yet another sign that manufacturing is on the rise in the U.S. and that the heartland still holds value for its geographical location as well as for the farmers and skilled laborers who stand to be the backbone of economic development.