GCEDC has landed its first business for the Genesee Valley Agri-Business Park in Batavia. It is a Bogata, Colombia-based dairy product company that will use the plant to expand its yogurt business into the United States.
According to South American news reports, Alpina Productos Alimenticios will invest $15 million in the project and will initially hire 50 people at the plant.
Established by two Swiss entrepreneurs in 1945, Alpina runs nine industrial facilities across Colombia, Venezuela and Ecuador, and has commercial presence in more than 12 countries.
The product line, which generates about $740 million in annual revenue, includes beverages, milk, baby food, desserts, cheeses, cream and butter, and fitness food products.
"The Alpina brand is a symbol of pride not only to Colombians but to the entire Andean region," Alpina President and CEO Julian Jaramillo (pictured) told La Republica. "We hope to build a new frontier for growth in the U.S. market, based on the properties of innovation, quality, nutrition and sustainability associated with our products and our presence in places where we already operate."
But it's not a 100-percent done deal, according to Genesee County Economic Development Center CEO Steve Hyde.
The company intends to purchase a 10-acre parcel with a phase I construction plan for a 28,000-square-foot yogurt manufacturing facility.
The company picked one of the newest parcels in the park, so there is still a little bit of work to be done to get it completely shovel ready, including extending one of the roadways.
The purchase is contingent on that work being completed on schedule, and if it is, Hyde said, construction on the plant should begin in August.
The 10-acre parcel will give the company room for expansion.
"They've got a real footprint for future growth," Hyde said.
According to the La Republica article, Alpina has achieved growth rates in Venezuela and Ecuador of 15 and 20 percent and his hoping for the same level of success in the U.S.
Jaramillo believes per capita consumption of yogurt in the U.S. is low, which he sees as an opportunity to capture new consumers.
Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeastern part of the U.S. has a fast-growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania.
Batavia having a nearly shovel ready park combined with the region's high number of quality dairy farms were attractive to Alpina.
"It kind of proves the thesis that you've got to have that shovel ready site that clusters industries or companies won't even come," Hyde said. "They won't take the risk. They've got to be able to build and go."
The project is part of a $50 million plan by Alpina to expand its business.
“We’ve been waiting for exactly the right moment to make a major push into the U.S. market, and today we found the right location to achieve our strategic goals,” said Alpina Foods, LLC, Managing Director Carlos Ramirez Zavarce.
Below is a video the company produced for YouTube that has received more than 500,000 views.