One of the world’s leading producers of sauerkraut is moving its headquarters to Wisconsin and expanding its manufacturing operations in the state, with help from the Wisconsin Economic Development Corporation (WEDC).
In a move that will create 60 high-paying jobs, support Wisconsin’s agricultural economy and add a fresh twist to its rich tradition of fermentation, Fermented Food Holdings, Inc. is investing $13 million to expand local production in Bear Creek and relocate its corporate headquarters to Madison. WEDC is assisting the expansion with $500,000 in performance-based tax credits. The amount of credits the company will receive is contingent on the amount of capital invested and the number of jobs created.
Governor Tony Evers welcomed the company’s decision to base its headquarters in Wisconsin and to continue growing its business in the state.
“As the home of the Bratwurst Capital of the World in Sheboygan, Wisconsin is already known worldwide for its brats, so it only makes sense that one of the world’s biggest makers of sauerkraut would want to be based here as well,” said Gov. Evers. “When people see the ‘made in Wisconsin’ label, they know they’re getting a quality product made by some of the best workers in the world, so I am grateful that Fermented Food Holdings sees the potential in our state’s strong food production, processing, and distribution networks and am glad to welcome them to Wisconsin.”
“Fermented Food Holdings’ commitment to partnering with local farms, investing in local communities and honoring Wisconsin’s deep agricultural heritage makes them a perfect fit for our state’s world-class food and beverage industry,” added Missy Hughes, secretary and CEO of WEDC, the state’s leading economic development organization.
Fermented Food Holdings is one of the world’s largest producers of sauerkraut and fermented foods, shipping its products to all 50 states and internationally. The company’s primary business is the development, manufacturing and distribution of natural fermented food products like sauerkraut, pickles and kimchi. Fermented Food Holdings owns brands such as Silver Floss, the best-selling sauerkraut nationwide, and Bubbies, the premier brand of refrigerated pickles in natural foods channel.
The company’s expansion in Bear Creek will add a new fermentation room, cooler and production line that will increase the facility’s capacity by 20 million pounds of cabbage annually – a 20% increase over current production.
Wisconsin is the fourth largest producer of cabbage in the United States, with major farms located in Outagamie, Racine, Kenosha and Waukesha counties. Being closer to local farms is vital for Fermented Food Holdings, as it allows for direct sourcing and organic, fresh ingredients – something the company was unable to rely on before.
“A big motivation for us is to get closer to the source and strengthen our relationships with local farms,” said Jorge Azevedo, CEO of Fermented Food Holdings. “We were buying from brokers, buying from farms that were certified organic – but we didn’t know the people growing the product. You couldn’t call up their cell phone and know the family who grew it for you. We find that connection to be very important.”
The investment will create 60 full-time jobs, 41 of which will be based in Bear Creek, a small town in northeastern Wisconsin of about 400 residents. The new roles also offer wages well above the state’s hourly average, providing a significant economic boost to the community. In addition to driving economic growth, the expansion honors the rich history of the facility, which was built over 100 years ago as Flanagan Brothers Pickling Company. Since then, it has evolved through various acquisitions while remaining a vital part of Bear Creek’s legacy and identity.
An additional 19 jobs will be added at the company’s new corporate headquarters in Madison. Fermented Food Holdings considered other big-city locations for its headquarters including Miami, Denver and Austin, but ultimately chose Madison for its strategic location and bustling food and beverage industry. According to Azevedo, the headquarters’ proximity to farms is crucial, allowing the company to bolster their relationships with local farmers, ensure efficient production processes and deliver high-quality end products.
“It’s a very simple, very healthy product and it’s one step away from the farm,” Azevedo said. “We love that we can be close to the small, very tight farming community that has been with us for decades.”
By growing closer to local farms, boosting production and setting up shop in-state, Fermented Food Holdings has a full plate keeping up with increasing demand for its fermented products. With Wisconsin’s appetite for all things brats, beer and sauerkraut, their future looks anything but sour.