Kraft Heinz says $400 million DC will distribute more than 60% of its foodservice business

Food distributor Kraft Heinz Co. will build a $400 million distribution center in DeKalb, Illinois, saying the facilty will become one of the largest automated consumer packaged goods (CPG) DCs in North America.

The 775,000 square-foot national distribution facility will combine automation technology with national railway access, enabling Kraft Heinz to drive greater supply chain efficiencies and distribute its products to retail and foodservice customers faster than ever, the company said Thursday.

When finished, the facility will play a critical role in the Pittsburgh-based company’s operations. The facility’s design includes a 24/7 automated storage and retrieval system with the ability to drive twice the volume for Kraft Heinz customers, distributing more than 60% of the company’s foodservice business and approximately 30% of all dry goods. 

To build the facility, Kraft Heinz picked Daifuku as its integrated logistics automation provider, working alongside other groups such as Trammell Crow Company (TCC), a global commercial real estate developer; Krusinski Construction Company (KCC), as general contractor, and the City of DeKalb and the DeKalb County Economic Development Corporation (DCEDC).

“As we continue on our journey to lead the future of food, our talented North America teams and collaborative external partners are innovating at a rapid pace to expand our supply chain capabilities,” Carlos Abrams-Rivera, executive vice president and president, North America at Kraft Heinz, said in a release. “It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”