The food and beverage industry has undergone significant transformation in the last year, driven by mass disruption in consumer behavior, evolving preference and rapid shifts in the supply chain.
As the crossroads of North America, the Kansas City region continues to respond to industry needs with record industrial construction in 2020 and increased speed-to-market opportunity. Many are saying the KC region is “becoming” a logistics hub for food and beverage operations. We’d argue that with its geographic location and proximity to key agriculture markets, Kansas City has always been a critical hub for the food supply chain.
More than 660 food and beverage companies call Kansas City home, and it’s not hard to see why. KC’s more than $226 billion food and beverage industry continues to thrive with a healthy inventory of new spec construction and vertical-ready sites, an advanced infrastructure network that allows companies to reach 85% of the U.S. population in two days or less, abundant utility supply and capacity and a strong, industry-specific talent pipeline.
In the last two years, the Kansas City region has successfully attracted food and beverage companies pledging to occupy 3.5 million square feet, create more than 1,700 jobs and invest more than $330 million.
A few companies that made the decision to locate in the region in 2020 include Dots Pretzels, Inc., World Pantry and PepsiCo, with more to come in 2021.
Pre-pandemic, the demand for cold storage space was significant and on the rise, fueled by shifts in consumer preferences, demand for fresh product and food transparency and changes to consumer shopping habits, amongst other factors. The onset of COVID-19 further accelerated these preferences and stretched the supply chain to levels many of us have never seen. It also increased an already heightened focus on eCommerce and online grocery solutions, adding pressure to the limited supply of modern cold storage facilities.
To meet the surge in demand, companies are scrambling to restructure their supply chains, streamline their distribution network and reduce delivery time to accommodate consumer expectations. Logistics hubs including the Kansas City region, which has attracted more than 18 million square feet of eCommerce and distribution operations in the past five years, are perfectly positioned to attract investment and occupiers seeking cold storage solutions.
With the strength of our nationally-recognized development community, proactive civic leaders at the local and state level and an unmatched logistical competitive advantage - the Kansas City region will see development of cold chain-ready facilities in 2021.
You can learn more about the Kansas City region’s strengths in food and beverage operations at KCSmartPort.com.
Bon Appétit!
Elli Bowen is the vice president of business development at KC SmartPort, the authority on logistics opportunities in the 18-county, two-state Kansas City region. As a nonprofit economic development organization, KC SmartPort promotes and enhances the Kansas City region’s status as a leading North American logistics hub. KC SmartPort is affiliated with the Kansas City Area Development Council, the regional economic development organization for the 18-county Kansas City metro.