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Representatives from Illinois-based US Foods broke ground last week on a new distribution center set to open in McClellan Park by late 2020.
The 355,000 square-foot distribution center – worth $71.6 million – was announced last fall, and will contain a meat-cutting facility, store thousands of food service products and operate a distribution fleet, according to a US Foods news release.
It is expected to create 160 to 180 jobs after opening and generate more than $59 million annually in the greater Sacramento economy, according to previous reporting by The Bee.
“We are excited about the opportunities this state-of-the-art facility will bring to the region as we continue to showcase our commitment to helping independent restaurant operators across Northern California succeed,” US Foods Northern California president Bernie Orsini said in a prepared statement. “This is an important investment made possible by the dedication of our US Foods leadership in partnership with the Greater Sacramento Economic Council, the Governor’s Office of Business and Economic Development and Sacramento County, and we’d like to extend our gratitude for their ongoing support.”
US Foods has more than 60 facilities across the country, including five in California, but the new McClellan Park site marks the company’s first expansion into the Sacramento area. Its nearest location is in Livermore.
Steven Humphreys, US Foods’ west region president, said the decision to expand into the Sacramento area was driven largely by the inability of its Livermore distribution center to keep up with demand in Northern California.
While the Livermore facility, now at full capacity, has been servicing west of the region, and a site in Reno has been servicing east of the region, a Sacramento location offers an opportunity to reach more clients, Humphreys said.
“It’s one thing if you’re in Sacramento and you’ve got to get in the car and drive an hour and a half ... but if you can drive across town that’s going to give us a competitive advantage,” he said. “Any time that you have the ability to have a distribution center in a town as large as Sacramento, that’s going to give you a lot of opportunity with your local customer base.”
US Foods may invest further in the Sacramento area in the future, Humphreys said.
“Business is really expanding in Northern California – we see it as one of the growing areas of the country,” Humphreys said. “With Sacramento growing as it has in the last few years in Northern California, we just felt like it was a great opportunity for us.”
The building is being designed with environmental conservation in mind, meeting U.S. Green Building Council standards for LEED – Leadership in Energy and Environmental Design – silver certification, according to the release.
The distribution center will feature efficient refrigeration systems, energy-saving LED lights, optimized HVAC systems and water-saving landscaping, according to the release.
The McClellan distribution center will also have a demonstration kitchen, a training center for customers to use and a technology center that will showcase web tools, according to the release.
The company employs about 25,000 people in the United States and generates about $24 billion in annual revenue.