Fermented Food Holdings, Inc. has decided to relocate its corporate headquarters to Madison, Wisconsin, while also expanding its existing sauerkraut production facility in Bear Creek, a village about 150 miles north of Madison. As one of the world’s largest producers of sauerkraut and fermented foods, Fermented Food Holdings’ primary business is the development, manufacturing, and distribution of natural fermented food products like sauerkraut, pickles, and kimchi. The company owns brands such as Silver Floss sauerkraut and Bubbies refrigerated pickles.
Fermented Food Holdings plans to invest $13 million for the new headquarters and the expansion project. Wisconsin Economic Development Corporation (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. The investment will create 60 full-time jobs, 41 of which will be based in Bear Creek with 19 added to headquarters operations. In addition to driving economic growth, the expansion honors the history of the facility, which was built more than 100 years ago as Flanagan Brothers Pickling Company. It has evolved through various acquisitions while remaining a vital part of Bear Creek’s identity. The 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 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.”
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.
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.”
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.
