King’s Hawaiin owner to build $54M pickle factory

Dive Brief:

• The maker of Grillo’s Pickles is constructing a $54 million food manufacturing plant near Columbus, Indiana, to meet growing demand for its fresh pickle products.
• Irresistible Foods Group, the owner of Grillo’s and King’s Hawaiian sweet bread brands, on Thursday said it recently broke ground on the 155,000-square-foot pickle factory with plans to hire up to 150 workers.
• The site is located next to a 300,000-square-foot King’s Hawaiian bakery operation that is under construction and expected to open as soon as next year, according to the Greater Columbus Economic Development Corporation.

Dive Insight:

In December 2023, California-based Irresistible Foods Group agreed to invest up to $180 million on what would be King’s Hawaiian’s first production plant in the Midwest.

The company chose to build the bakery on an 88-acre site located on the southeast corner of Exit 76 on Interstate 65 that was large enough for further expansion.

“When we purchased the Bartholomew County site, we did so with thoughts about building it out in phases,” Joe Leonardo, vice president of strategic operations for Irresistible Foods Group and COO of King's Hawaiian, said in a statement. “[Thursday’s] announcement for Grillo's Pickles confirms our strategy.”

Irresistible Foods Group has received local and state support for its two projects to drive economic growth in the south-central Indiana region. Bartholomew County officials have pledged up to $3.7 million in funds to pay for off-site water, sewer and road improvement upgrades, according to a release.

Last June, officials unanimously approved the company’s request for tax relief on the Grillo’s building and equipment over a 10-year period to produce estimated savings of $1.2 million.

“Our pickles use a century-old family recipe and contain no artificial preservatives, Grillo's Pickles are packed, shipped, and sold refrigerated,” Adam Kaufman, president and CEO of Grillo's, said in a statement. “For our new production site, it was important to us to find a central U.S. location with a skilled workforce and supportive business environment, and we are very excited to be in Bartholomew County, Indiana.”

In addition to the county incentives, the Greater Columbus EDC has earmarked $1 million for interstate improvements near the Taylorsville Industrial Park, where the Grillo’s and King’s Hawaiian facilities will be located. The Indiana EDC has committed up to $1.4 million in job creation tax credits for the Grillo’s project.

Founded in 2008, Grillo’s began as a pickle cart at Boston Common city park, with two pickle spears selling for a dollar, BevNet reported. Within a year, the company began selling their products in local Whole Foods stores and has since exploded in popularity, reporting sales of $28 million in 2021, or roughly 7.7% of the refrigerated pickle subcategory.