Press Room

SUN-MAID ANNOUNCES FIRST ACQUISITION IN 109 YEARS. HERE’S WHAT THEY ARE BUYING

An acquisition by Sun-Maid will put the popular brand onto baby food aisles. Sun-Maid Growers of California announced Wednesday it will purchase Plum Organics, an organic baby food brand from Campbell Soup Co., according to a news release. Terms of the deal were not disclosed. It is expected to close this spring. Plum Organics offers food and snacks for babies and children.

This will be the first business acquisition in Sun-Maid’s 109-year history. “Plum is a natural fit for the Sun-Maid family given our expertise, leadership and rapid growth in healthy snacking, along with our strong emotional connection with family households,” said Harry Overly, CEO and president of Sun-Maid, in a statement. “Its acquisition is an integral part of our continued dedication to providing superior products while delivering category growth.” Chris Foley, Campbell’s president of Meals & Beverages, said, “The sale of the Plum Organics baby food brand is part of our ongoing strategic process to create even greater focus on driving growth in the division’s core categories of soup, sauces and beverages.”

Plum Organics was founded in 2007 by a group of parents on a mission to give the very best food to their little ones, according to a news release. Campbell acquired Plum in 2013. Sun-Maid was advised in the deal by Cascadia Capital. Campbell was advised by Evercore. Overly took the reins of Sun-Maid in 2017 with a dedication to bring dried fruit back to popularity.

In a recent presentation to Fresno Rotary Club members, Overly spoke on the decline of dried fruit. “Our brand has almost skipped a generation because they weren’t innovating and communicating,” Overly said. Under Overly’s control, the brand updated its logo, which he said is the most recognizable in the business. They also have launched new products including flavored raisins and yogurt-covered raisins to renew interest in the fruit. Overly said they’re trying to reimagine the dried fruit aisle and make it more of an attraction.

At the production end, Overly said the company has updated its pricing model to better reflect market prices to its cooperative of approximately 750 growers. Previous pricing models had established prices before markets determined where demand existed. Globally, the United States has lost out in market share to countries such as Iran, Turkey and China. In 2018, U.S. volume share was over 18%. By 2020, that share had dipped below 16%.

https://thebusinessjournal.com/sun-maid-announces-first-acquisition-in-109-years-heres-what-they-are-buying/#:~:text=Sun-Maid%20announces%20first%20acquisition%20in%20109%20years.%20Here%E2%80%99s,Campbell%20Soup%20Co.%2C%20according%20to%20a%20news%20release.

City confirms Amazon project at former Kmart

Confirmation arrived Friday that Seattle-based e-commerce giant Amazon will convert the former Kmart store on Wilson Road into a “last-mile delivery station” as part of a $20 million renovation project expected to create 200 new jobs when the facility becomes operational later this year. The project, first reported by The Californian in December, elicited praise from city officials who view it as a community asset sure to improve service to residents while also beautifying what some have described as blighted property along a major commercial corridor in south Bakersfield. “This innovative local facility means our community gets even better service when they order their packages online,” Mayor Karen Goh said in a news release sent out Friday. “This announcement also lets business leaders know that Bakersfield welcomes industries and innovators ready to grow and expand in California.”

The news release contained no comment from Amazon, which in recent months has declined to address the project. Last summer the company opened a massive distribution “fulfillment” center just north of Meadows Field Airport. Since then it has announced plans for another such facility in Shafter. Each of those two projects is expected to employ 1,000 full- and part-time employees.

Paperwork filed with the city called for a majority of the former shopping center property’s 128,150-square-foot footprint to remain in place. But it said the shopping center’s eastern portion would be bulldozed to accommodate driving access and parking. The demolition was expected to take out several small businesses that had been operating on the property. The paperwork also said the proposed facility would receive and sort six truckloads of consumer goods per day. Products would then be loaded onto 20 delivery vans and shipped out in staggered departure times to avoid causing congestion.

An Orange County public relations firm that issued Friday’s news release on the city of Bakersfield’s behalf said the property has been purchased by Greenlaw Partners, an Irvine real estate developer. Greenlaw had also been negotiating to buy a separate series of properties near Buck Owens’ Crystal Palace, and people involved in those talks said Amazon was the intended operator. It was unclear whether the company remains interested in those additional properties. The PR firm that issued the news release declined to say whether Amazon expects to open additional last-mile stations in Kern. Greenlaw and Amazon could not immediately be reached for comment. The news release said renovations to the Wilson Road site will benefit the local neighborhood and improve Wilson Road by adding a new parking lot, lighting and attractive landscaping. It said there will be a new roof and bay doors will be installed to accommodate delivery service.

Bakersfield Assistant City Manager Jacqui Kitchen called the project an “outstanding opportunity for Bakersfield.” “Amazon’s new facility will revitalize an empty building in the city that no longer served our residents,” she stated in Friday’s news release. “The conversion of this former big box site into an innovative last-mile e-commerce facility aligns with the changing needs of local consumers and the city looks forward to working with Amazon to help integrate the new operations into our city and provide a significant boost to our local economy.”

Kmart closed its store at the shopping center just west of Highway 99 in early 2017. That was followed by the closure of a Big Lots store located next door. Since then, the owner of an apartment complex to the south has complained that the mostly vacant center has attracted transients who sometimes hop a fence onto its property.

https://www.bakersfield.com/news/city-confirms-amazon-project-at-former-kmart/article_477b4c0a-93d4-11eb-a9a2-675550ce6d36.html

Helena Chemical reveals plans west of Hwy 41 in Lemoore

Lemoore City Manager Nathan Olson says that an official application has been submitted from Helena Chemical looking to relocate from Hanford.

https://hanfordsentinel.com/community/kingsburg_recorder/around-kings-county-leprino-plans-10mw-solar-farm/article_92dc8173-9acb-59e9-9c80-db56fad1592a.html

Hanford, CA’s Central Valley Meat Betting Big On Beef With Expansion

Central Valley Meat wants to do a two-phase expansion of its beef processing plant in Hanford and has applied to Kings County for a conditional use permit. The big plant already processes about 1,500 head of cattle a day.

According to the application filed earlier this year, the company plans to increase the capacity three-fold to 4,500 head a day. The facility is located just off of Highway 198 at the urban edge of Hanford, putting jurisdiction for permitting with the county.

County planner Kao Nou Yang says the process is in an early stage in environmental review, just now receiving comments from stakeholders including the city and the California Department of Transportation.

https://www.perishablenews.com/meatpoultry/hanford-cas-central-valley-meat-betting-big-on-beef-with-expansion/

Planning Commission approves solar farm application

Lemoore’s largest employer, Leprino Cheese Co, has filed plans to build a 32 acre,10 megawatt solar farm just west of their big plant. Panels will be ground mounted. The city Planning Commission recently approved the application that will help cut the power bill at one the the largest cheese manufacturing facilities in the US. 10MW of power is enough to light up some 2500 homes.

The Lemoore West facility employs 1,000 team members, its size is equal to 11 football fields with over 640,000 square feet of cheese making capacity. Just how much of the daily power needs will be met by the solar farm is not known but it is thought to be substantial. In addition, having an on-site power source could offer the plant energy security in case of rolling grid blackouts.

In the past five years, the price of solar has declined some 45% says the Solar Energy Industry Association. Another incentive is the extension of the federal Investment Tax Credit (ITC), where PV system owners qualify to offset tax payments owed to the IRS in an amount equal to 26% of the eligible cost basis of a solar photovoltaic system until the end of 2022.

California approves grants to food processors for similar systems to help food processors reduce their energy use and greenhouse gas emissions.

https://hanfordsentinel.com/community/kingsburg_recorder/around-kings-county-leprino-plans-10mw-solar-farm/article_92dc8173-9acb-59e9-9c80-db56fad1592a.html

THREE VALLEY MANUFACTURERS EARN ENERGY STAR CERTIFICATION

The U.S. Environmental Protection Agency (EPA) recently announced 95 manufacturing plants nationwide earned Energy Star certification in 2020 for being the most energy-efficient in their industries, and three of those companies are from the Central Valley.

Vitro Architectural Glass in Fresno, J.R. Simplot Company in Helm in Fresno County, and Ardagh Glass in Madera have been awarded the distinction.

By managing their energy usage strategically during the Covid-19 pandemic, the Energy Star Certified plants saved nearly $400 million on energy bills, which is equal to the payroll value of over 8,000 U.S. manufacturing jobs.

“EPA commends our partners here in California for their leadership in advancing energy and cost saving improvements,” said EPA’s Air & Radiation Division Director for the Pacific Southwest region Elizabeth Adams. “Their commitment to energy efficiency not only protects the environment, it is a smart business decision that supports the bottom line.”

Beginning in 2006, the Energy Star Industrial program has annually certified manufacturing plants in the U.S. for operating within the top 25% of energy performance in their industry nationwide.

Since the first manufacturers received their certification from the program 15 years ago, the plants have realized more than $6 billion in savings on energy bills.

Other California companies that received certification for their performance in 2020 include Bimbo Bakeries USA, Inc. in Sacramento, San Luis Obispo, and San Diego, and Flowers Baking Co. in Modesto.

https://thebusinessjournal.com/three-valley-manufacturers-earn-energy-star-certification/?mc_cid=467bb44e45&mc_eid=54995b94ba

LOCAL PLANT BETTING BIG ON BEEF WITH EXPANSION

Central Valley Meat wants to do a two-phase expansion of its beef processing plant in Hanford and has applied to Kings County for a conditional use permit. The big plant already processes about 1,500 head of cattle a day. According to the application filed earlier this year, the company plans to increase the capacity three-fold to 4,500 head a day. The facility is located just off of Highway 198 at the urban edge of Hanford, putting jurisdiction for permitting with the county.

County planner Kao Nou Yang says the process is in an early stage in environmental review, just now receiving comments from stakeholders including the city and the California Department of Transportation. “The project will be heard by the county planning commission with a public hearing but not any time soon,” said Yang. She adds the county has not yet determined the extent of the environmental review.

https://thebusinessjournal.com/local-plant-betting-big-on-beef-with-expansion/?mc_cid=967e565110&mc_eid=f889111bd1

Site Selectors Guild Activity Outlook

The latest survey of the Site Selectors Guild views on site selection activity and trends is attached and I have a few comments. While I generally agree with the greater optimism, I’m more cautious and think that there are uncertainty and nuances to consider.

Guild members are much more optimistic today than in April last year, at the depth of the Covid-19 recessions and uncertainty, that companies will move forward with site selection projects. The pace and coverage of Covid-19 vaccinations is an obvious concern. Second, some projects, such as facilities with long planning and construction timelines and notably those tied to e-commerce such as data centers, e-commerce fulfillment centers, delivery equipment and others seem to have hardly paused. I spoke yesterday to representatives from California’s Central Valley who said that e-commerce fulfillment has been strong throughout in their area driven by access to LA and the Bay Area combined with available land and lower costs.

There is a difference between site selection activity and starting construction. Companies may resume their site searches, but at some time they have to weigh their views of future economic activity and demand for their products and decide whether to start construction or not. Increased activity is not the same as increased investment. We’ll see, but my feeling is that the second half of the year or early 2021is more promising for increase divestment.

I think that stabilization of FDI into the U.S. is more likely than growth. Greater predictability of trade and tariff policy and reliance on rules-based procedures will help confidence. But FDI into the U.S. also depends on pandemic control progress and economic stability in historical investment sources from the EU and other developed countries.

There will the continued pressure for reshoring and crating redundancy particularly in health care related industries where bottlenecks and delays were heightened during the pandemic response. However, supply chains are complicated, and many recent articles have pointed out that supply chains for products as diverse as bicycles and computers are concentrated in east and southeast Asia and this will constrain reshoring in the near term and likely longer. As the Economist noted recently: “Is a wave of supply-chain reshoring around the corner? Experience and evidence suggests they are stickier than you think.”

https://siteselectorsguild.com/news/site-selection-predictions-2021/

How California’s Central Valley is working to become tech hot spot

MODESTO, Calif. — Alejandro Alcazar had worked as a digital marketing coordinator for about a year when he discovered an interest in coding.

“I grew really interested in computer programming through messing with our (company) website and learning a lot about data science,” he said.

Alcazar has a degree in business administration, but he wasn’t using those skills in his job. Still, he didn’t know enough about web development to secure a position in the industry. That’s when he learned about classes at Bay Valley Tech, a Modesto-based coding school.

The 24-year-old enrolled in early 2020, and, after completing the seven-month program, got a job as a business intelligence analyst for a winery.

In his new job, Alcazar said he uses skills he developed at Bay Valley Tech to work with the company’s internal dashboards that show product and demographic data, as well as its search engine. His pay also increased by more than 30% in his new role.

Workers like Alcazar aren’t the only ones wanting to capitalize on the benefits of the tech industry. If a city can retain its tech workers, it can usually count on a boost to the local economy and an influx of other businesses and professionals such as lawyers and accountants.

But keeping tech workers local requires innovation and incentive, as leaders across Stanislaus County in California’s Central Valley are finding out.

Compared with other industries, the tech sector has remained competitive in the COVID-19 pandemic. Remote work has become the new normal, and the tech industry was quick to adapt, expanding flexible work policies into post-pandemic times.

Now, office parks sit empty and cities and corporations must grapple with the changing nature of office work and all the possibilities it brings.

Less than two hours east of the Bay Area, the Central Valley isn’t exactly known as a tech hub. Agriculture, logistics and manufacturing dominate the area; the region is home to the world’s largest commercial winery and farms that feed the nation.

The workforce reflects that too — only 17% of Stanislaus County residents have a bachelor’s degree or higher, Census data shows. Given that, it may not be surprising that Modesto, the county’s largest city, has no four-year university of its own.

The “skills gap” in the workforce is only widening. Local high schools and colleges have struggled to keep up as the economy evolves to favor more tech-forward industries.

Tech firms bypass Central Valley
As local talent pools dry up, Silicon Valley companies looking to expand have often picked other states. such as Texas and Idaho, instead of the county next door.

“There’s such a shortage of tech workers in the Bay Area right now that virtually every large tech firm has already expanded out of state looking for more talent,” said Phillip Lan, co-founder of Bay Valley Tech, a local coding academy. “Unfortunately, the vast majority of them have stepped over the Central Valley, just because they don’t feel like there’s enough of a technical workforce here yet.”

Lan and his team are trying to change that. Bay Valley Tech offers free and low-cost coding classes to students in a variety of web-based development languages, providing hands-on training through lessons, events like hackathons, and networking opportunities.

So far, Lan said, Bay Valley Tech has trained more than 150 students and is on pace to reach 300 in 2021. But his goals are set higher.

“Our strategy is that if we train enough people here in the Central Valley, that’ll start to get the attention of these larger tech companies like Uber, Airbnb and Google,” he said. “We’re looking to build out Bay Valley (Tech’s) expertise sector by sector.”

In the past, tech hub development depended in part on the physical infrastructure a city could provide — like Silicon Valley’s history of making computer chips and Austin’s decades-long infrastructure support for its tech industry. But with the pandemic’s new normal and the majority of Silicon Valley’s big tech firms building virtual products, physical space is no longer at a premium.

Focus is on training workers
Instead, Bay Valley Tech and other organizations in the Central Valley are focusing on training employees who can accept remote jobs from Bay Area-based companies or work in satellite offices closer to home.

Daisy Mayorga leads the local chapter of Google’s Women Techmakers, aimed at providing community and resources for women in the industry. She said it’s critical that women and other underrepresented groups in tech are seen and heard by potential employers.

“When people start to see that, you’ll see more businesses start to open and more people start to want to start their own software companies,” she said.

In addition to jobs related to software, Modesto is trying to attract employers who build hardware. The VOLT Institute, a trade school focused on maintenance mechanics and mechatronics, recently acquired new equipment to train workers.

Kevin Fox, director of marketing and student engagement at VOLT, said the pandemic has taught the staff that improving workers’ skills is crucial, especially when employers are “desperate to bring anybody who is qualified with the proper skill set on to fill those positions that are vacant.”

Alcazar agrees.

He said the Central Valley has plenty of residents who are hungry for these kinds of opportunities.

“There are young people here that are just dying to get a good job and try something creative and useful,” he said. “Something that benefits a community.”

Source: Kristina Karisch covers economic development for The Modesto Bee. This dispatch is part of a series called “On the Ground” with Report for America, an initiative of The GroundTruth Project. Follow her on Twitter: @kristinakarisch

https://www.usatoday.com/story/opinion/2021/03/11/how-californias-central-valley-working-become-tech-hot-spot-column/6936506002/

Riverbank made bold plans for old Army ammo plant

Twelve years after the Army stopped making ammunition in Riverbank, the vast plant is only partway toward its potential for new jobs. But that could improve soon, local officials said during a tour Thursday for Rep. Josh Harder, D-Turlock. They envision about 2,000 people working for various tenants, up from about 650 now, with an emphasis on green industries.

Harder heard about how long it is taking for state and federal agencies to ensure that contaminated portions of the site are cleaned up. It stretches across 173 acres at Claus and Claribel roads, with about 150 buildings and plenty of open land. Harder earlier helped a company navigate federal rules regarding foreign investment in a venture that would make vehicle fuel from nut shells and orchard wood waste. Aemetis plans to employ about 50 people on the Riverbank site and said contract truckers would add perhaps 1,000 more jobs. “There’s a lot of unique things about this site,” Harder said. “It’s already prebuilt for manufacturing opportunities.”

https://www.modbee.com/news/business/article249252650.html