SK Food Group, which manufactures a line of sandwiches, entrees and salads, will open an 86,000-square-foot facility at 5555 Quail Manor Court, off Longley and Double R Boulevard in Reno.
It will contribute a $75 million economic impact, says the Economic Development Authority of Western Nevada. The company is investing $5 million in the facility and will add a large modular refrigeration unit at the Reno plant to store foods prior to shipping.
The facility will employ about 200 initially, swelling to 300 by the end of 2007, says SK President Steve Sposari. While a few top managers will relocate here, the bulk of the hiring will be done locally. SK Food Group is working with Nevada Jobconnect to help fill the production and warehouse positions.
The company supplies ready-to-eat foods to retail outlets, convenience stores, schools, vending machines and the transportation industry. It also handles subcontract manufacturing and private labeling to customers throughout the country. SK Food Group hesitates to name names, however, because many of those outlets like their customers to think that mom is busy in the back making up those sandwiches and salads.
The company chose the Reno location to serve its significant client base in the Southwest, says Sposari. And Reno's proximity to company headquarters in Seattle is a bonus.
"Our production facility is unique," he says. "We're in the process of creating state-of-the-art for cold storage." Trammel Crow Construction is building the required cold storage units.
To extend safe shelf life, the food items are stored in modified-atmosphere packaging that permits extended storage for up to 28 days. The package is formed on the production line and the oxygen extracted and replaced with nitrogen so that bacteria cannot grow inside.
"It takes a lot of R&D to get that process down," says Sposari.
The company currently produces nearly 2 million food items a month at its Seattle plant, but once the Reno capacity comes on line, it expects to ship in excess of five million a month.
What makes the business interesting, says Sposari, is developing new items to satisfy taste trends. Right now wraps are big.
"You want to stay ahead of the curve," he says.
In Reno, Matt Riecken of Trammel Crow Co. represented the landlord, Seattle-based Kennedy Associates, and Debbie Sasz-Vonarx of Commercial Properties of Nevada represented SK Food Group in the transaction.
