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Kansas City: The Secret Sauce for Food and Beverage Operations

by Mary Rooney | Mar 10, 2021

The food and beverage industry has undergone significant transformation in the last year, driven by mass disruption in consumer behavior, evolving preference and rapid shifts in the supply chain. 

As the crossroads of North America, the Kansas City region continues to respond to industry needs with record industrial construction in 2020 and increased speed-to-market opportunity.  Many are saying the KC region is “becoming” a logistics hub for food and beverage operations. However, with its geographic location and proximity to key agriculture markets, Kansas City has always been a critical hub for the food supply chain.

More than 660 food and beverage companies call Kansas City home, and it’s not hard to see why. KC’s more than $226 billion food and beverage industry continues to thrive with a healthy inventory of new spec construction and vertical-ready sites, an advanced infrastructure network that allows companies to reach 85% of the U.S. population in two days or less, abundant utility supply and capacity and a strong, industry-specific talent pipeline. 

In the last two years, the Kansas City region has successfully attracted food and beverage companies pledging to occupy 3.5 million square feet, create more than 1,700 jobs and invest more than $330 million. 

A few companies that made the decision to locate in the region in 2020 include Dots Pretzels, Inc., World Pantry and PepsiCo, with more coming in 2021. Plus, companies like McCormick Distilling Co. and Hostess Brands and are expanding their existing presence in the Kansas City region. 

With recent surges and changes in consumer demand around online grocery and eCommerce, companies are scrambling to restructure their supply chains, streamline their distribution network and reduce delivery time to accommodate consumer expectations. Logistics hubs including the Kansas City region, which has attracted more than 18 million square feet of eCommerce and distribution operations in the past five years, are perfectly positioned to attract investment and occupiers seeking cold storage solutions. 

With the strength of the Kansas City nationally-recognized development community, proactive civic leaders at the local and state level and an unmatched logistical competitive advantage - the Kansas City region will see development of cold chain-ready facilities in 2021.

Learn more about the Kansas City region’s strengths in food and beverage operations.

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