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US Foods Eyes New Facility in Sacramento, CA

US Foods Eyes New Facility in Sacramento, CA

Monday, July 2nd, 2018

News on the foodservice front certainly isn’t dull, as multiple chains make moves and shake things up. The latest in foodservice shake-ups comes from US Foods, who, according to Sacramento Business Journal, was awarded a California Competes Tax Credit to develop a center at McClellan Park. But will the company actually file plans with Sacramento County for the proposed $71.6 million distribution center?

An inside look at a US Foods facility

Since 2011, US Foods has owned about 35 acres on the west side of the former Air Force base, and planned to develop a 500,000-square-foot warehouse and distribution center. Before the company started the project, it was bought out by its largest competitor, Sysco, and the McClellan site remained undeveloped.

However, the Sysco deal collapsed in 2015, after the Federal Trade Commission expressed concerns that the merger would limit competition and violate antitrust laws, but US Foods still hasn’t submitted plans for the center to Sacramento County.

Another US Foods facility located in Los Angeles, CA

US Foods' Director, Media Relations & Issues Management Sara Matheu said in an email to Sacramento Business Journal that while the company has been approved for the credit, it has not yet decided whether it will proceed.

Sara Matheu, Director, Media Relations & Issues Management, US Foods“Yes, the state has provided US Foods with an incentive proposal should we decide to expand within the state at a point in the future," Matheu stated. “However, we have not made any commitments at this time. It’s simply too soon to speculate.”

In its application, US Foods said it would spend $71.6 million on the project at McClellan and create 216 jobs. The company would receive the $7 million tax credit over five years while it met hiring and spending milestones.

According to the publication, the California Competes Tax Credit is one of the state’s only economic development incentives. In the latest round of applications, roughly 259 companies applied for the credit, of which only 29 were awarded, according to Sam Chiu, Spokesman for the Governor’s Office of Business and Economic Development.

Will US Foods develop this new center or will plans fall through? Deli Market News will stay on the case.

US Foods