Kansas City feasts in food and beverage

KC SmartPort’s 12th annual industry briefing was held on June 24, focusing on the food and beverage industry and the growth of the Kansas City region as a hub for food logistics. 

Jason Robertson, vice president, food + beverage, at CRB, joined Chris Gutierrez, president of KC SmartPort, on stage.

“What else connects our personal lives, our business lives, creates those life experiences besides food and beverage,” said Gutierrez.

From a temporary sidewalk stage, Gutierrez addressed a crowd of more than 300 seated at tables on 13th Street under the Kansas City Convention Center.   

“There are a lot of things happening in food and beverage.  Whether it’s what you eat, how it’s made, the production innovations that are happening, and of course, how is it distributed and delivered in an on-demand world,” Gutierrez said.

Currently, more than 670 industrial food and beverage operations call the Kansas City region home.  This $125.4 billion Kansas City industry employs more than 25,500 people in food and beverage manufacturing, warehousing and distribution.

Gutierrez said that food and beverage projects have increased 64 percent year over year in the Kansas City market.  In the last 18 months, several food and beverage companies, including Dot’s Pretzels, Hostess Brands, World Pantry, Pretzels, Inc. and Niagara Bottling, have come to the market.

KC SmartPort reported that the food and beverage companies attracted to the Kansas City area in the past two years have pledged to create more than 1700 jobs, invest more than $330 million and occupy nearly 3.5 million SF.

Nationally, the demand for cold storage in temperature controlled space is not meeting the supply; but, Kansas City has stepped up, Gutierrez said.  

Liberty, Missouri will be home to the recently announced Heartland Cold Storage Logistics Center.   Gutierrez said CBRE will announce in the near future another cold storage facility coming to the region.

“It’s coming and there’s more on the horizon.  We’re meeting that demand.  There’s a lot of need for cold storage in this region,” said Gutierrez.

Robertson said the consumer is driving how food production facilities are designed and built, how food is packaged and what foods are coming to grocery shelves.  

“Really the millennials and Gen Zs are those that are looking at a different type of interaction with their food products.  I quickly compare that to maybe what Kraft macaroni and cheese used to be to now where Annie’s is really one of those top products,” said Robertson.

Workforce issues present one of the most challenging aspects of the food and beverage industry, said Robertson.  

“I think there’s certainly a quality of life that the food producer is going to have to address,” Robertson said.  

The design and construction of new food plants in the post-pandemic world will need to account for social distancing.  

Food processors, particularly in the meat processing industry, learned during COVID-19 that “you just can’t social distance by the way that those products are ultimately processed and packaged,” said Robertson.

The industry also must address the challenge of retaining workers in facilities with temperatures of 30 degrees. 

“You want to keep that worker because the dollars you invest to recruit and retain and so then ultimately, how do we create an environment for them to succeed and be happy to go to work every day,” Robertson said.  

Not only did online grocery sales explode during the pandemic, but so did subscription food box sales.

“I would say that’s the future.  That’s here to stay,” said Robertson.

Robertson said the industry will need to address how delivered food is packaged as some consumers complain about the use of too much plastic.  

The industry also must evaluate packaging within the grocery stores.  With more shoppers having groceries delivered to their homes or directly to their cars, Robertson asked whether the industry needs as many packaging types of materials to catch the shopper’s attention.

Gutierrez and Robertson discussed the advantages of the Kansas City region to the food production/food distribution industry, an industry facing rising costs and supply chain challenges.

Robertson noted that the average age of truckers is “north of the high 50s”, and that it takes several days to move product from coast to coast.  Also, wages and costs per square foot in the Midwest are a fraction of the costs on the coasts.

“I just think that the play for logistics and more of a centrally located play is here to stay - will always be here to stay.  I think that’s what we need to rally around as we recruit new prospects to the region,” Robertson said.

KC Convention Center wins top global rating for clean, healthy facilities

Kansas City’s largest event space, the Kansas City Convention Center, has achieved accreditation from the Global Biorisk Advisory Council (GBAC) STAR™ program for its cleaning, disinfection and infectious disease prevention practices.

The City of Kansas City worked with Visit KC to earn this designation, which is recognized by industry leaders as the gold standard for prepared facilities. The GBAC STAR program verifies that the Kansas City Convention Center has implemented best practices to prepare for, respond to and recover from outbreaks and pandemics such as COVID-19.

“The GBAC STAR accreditation empowers facility owners and managers to assure workers, customers and key stakeholders that they have proven systems in place to maintain clean and healthy environments,” said GBAC executive director Patricia Olinger.

“By taking this important step to pursue its accreditation, the Kansas City Convention Center has received third-party validation that it follows strict protocols for biorisk situations, thereby demonstrating its preparedness and commitment to operating safely.”

The result of a rigorous, 90-day application and review process, the accreditation was praised on Thursday by Kansas City Mayor Quinton Lucas.

“I applaud the Kansas City Convention Center for reaching the prestigious Global Biorisk Advisory Council STAR status,” said Mayor Lucas.

“Kansas City takes seriously our responsibility to keep our residents and visitors alike healthy and safe, and this is yet another example of that commitment. Thank you to the Convention Center and Visit KC for their work to achieve this status.”

To achieve GBAC STAR accreditation, the Kansas City Convention Center was required to demonstrate compliance with the program’s 20 core elements, which range from standard operating procedures and risk assessment strategies to personal protective equipment and emergency preparedness and response measures.

“Our staff is dedicated to keeping our facilities clean and safe, and we are gratified by this recognition of our work and our commitment to our customers,” said Oscar McGaskey, director of the Kansas City Convention Center. “Our staff will keep it up with continuous training.”

The KC Convention Center is the third facility in the region to achieve this distinction, following the Overland Park Convention Center and Arrowhead Stadium.

“Meetings and conventions are significant economic drivers for our destination, and this third-party endorsement reinforces our City’s dedication to resuming that important business responsibly,” said Visit KC president & CEO Jason Fulvi.

“I applaud and thank our partners at the KC Convention Center, as well as Mayor Lucas, the City Council and the KCMO health director for working with Visit KC to implement safety procedures throughout our community, all of which will help position Kansas City to welcome visitors and attendees back safely and effectively when the time is right,” Fulvi said.

To learn more about the GBAC STAR program or view a list of accredited facilities, visit www.gbac.org. For information about the KC Clean Commitment and other ways Kansas City is responding to COVID-19 as a convention industry, go to VisitKC.com/SafeMeetings.