FOR IMMEDIATE RELEASE
CONTACT:
John Sommavilla, 616.975.0035
or
Mary Ann Sabo, 616.485.1432
Cole’s Quality Foods to Expand, Add New Production Facility in Iowa
Strong Demand for New Products, Contract with Major Club Chain Fuels Growth for Category Leader
GRAND RAPIDS, Mich., June 26, 2006–Fueled by strong demand for its new mozzarella-filled Cheesesticks, Cole’s Quality Foods is expanding its capacity and distribution with the addition of a state-of-the-art production facility in Iowa.
The Grand Rapids-based maker of frozen garlic bread products recently completed the purchase of a USDA-grade commercial baking facility in North Liberty, Iowa. The 35,465-square-foot production plant, which is nearly new, includes a large commercial freezer to store product before distribution.
Cole’s recently reached an agreement to begin producing club packs of its popular new Cheesesticks for a major chain of club stores. The agreement marks Cole's entrée into a new market segment and will significantly expand its geographical reach.
Cole’s expects to invest nearly $8.5 million to purchase and equip the Iowa facility, which will create nearly 60 jobs when running at full capacity later in 2007. Over the past eight months, the Company has
added 50 new jobs in its Muskegon baking plant and increased production from five to seven days to
meet sharp consumer demand for its products.
The Company projects sales for 2006 will increase nearly 25 percent.
" We are extremely pleased to announce this significant expansion of our production and distribution capabilities, " said John Sommavilla, president of Cole’s Quality Foods. " The consumer response to our new Cheesesticks has been nothing short of overwhelming, and we are already working on ways to expand this extremely popular product. "
" Consistent with our growth strategy, we are adding substantial capacity and broadening our distribution reach. We looked at increasing the size of our Muskegon plant, which is already running very close to full capacity, but the short lead time involved in meeting customer demand made that option impossible.
" We remain committed to Michigan and to growing the Company. We feel that this new secondary facility will allow us to expand our ability to deliver superior quality frozen bakery products to our customers. "
The Iowa facility is located between Cedar Rapids and Iowa City in an area with a large food-processing industry cluster. It was initially built four years ago to house an organic bread manufacturer who stopped production after only seven months. The facility is nearly new and built to quality standards that will meet the requirements of the U.S. Department of Agriculture.
While Cole’s will receive no tax abatements for its new facility, Iowa offers favorable business and property taxes. The state, in conjunction with Kirkwood Community College, will provide training grants for Cole’s employees. Additionally, the city of North Liberty will provide site improvement funds.
Cole’s expects to begin production in Iowa by the first quarter of 2007.
" The location of our new facility is ideal from a number of reasons, " Sommavilla said. " We will be closer to some of our key suppliers of grain, cheese and packaging. From a logistics standpoint, this more central location will give us easier access to western states and allow us to fulfill our commitment to current and prospective customers more efficiently. "
Cole’s Quality Foods invented the first frozen garlic bread in 1972, creating a category that now generates more than $300 million in sales annually. Its complete line of garlic breads, garlic toasts and garlic bread sticks are sold in grocery stores throughout the United States.
The addition of its new account opens the club channel for Cole’s, which is also looking to expand into the foodservice segment of the market.
" For the past two years, we have been working to grow the Company significantly and to expand the number of channels by which we reach customers, " Sommavilla explained. " The tremendous efforts of all our employees in combination with the strength of our new products is allowing us to do just that. We are an extremely consumer-focused company and look forward to growing our workforce in both Michigan and Iowa as we continue to grow. "
About Cole's
Founded in 1943, Cole’s Quality Foods is a privately held, Michigan-based
company. In 1972, Cole’s invented the first frozen garlic bread
and created a category that today, generates over 300 million dollars
in sales. The company’s product line includes a variety of
frozen garlic breads, garlic toasts and garlic bread sticks. An innovator
and category leader, Cole’s has experienced consistent revenue
growth throughout its 60-year history. Cole’s was first to
offer a complete line of frozen garlic breads and toasts that go
from freezer to table in 10 minutes or less. The company employs
more than 150 people in Muskegon and Grand Rapids, Mich.
To learn more about Cole’s, go to the company’s Web site at www.coles.com.
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