Top Key Drivers for Food & Beverage Site Selection Projects
Selecting the right site for a food and beverage facility is a complex process that involves balancing operational, logistical, and regulatory considerations. Whether you are establishing a new processing plant, distribution hub, or vertically integrated operation, making the right choice can significantly impact cost efficiencies, supply chain performance, and long-term sustainability. At Land Strategies, LLC, we guide our clients through the site selection process by focusing on the critical factors that drive success. Here are the top key drivers for a food and beverage project:
1. Access to Raw Materials and Supply Chain Efficiency
For food and beverage companies, proximity to raw material sources is essential for reducing transportation costs and ensuring freshness. Whether sourcing from local farms, international suppliers, or regional distributors, having a well-planned supply chain is critical to maintaining product quality and cost control. Understanding logistics infrastructure, freight corridors, and supplier networks can make a significant difference in overall efficiency.
2. Utility Availability and Cost
Food and beverage operations are highly energy- and water-intensive. Having reliable access to electricity, natural gas, and water - along with wastewater treatment capacity -is a critical consideration. Many municipalities and industrial parks offer utility incentives and infrastructure support to attract food processing facilities, making it crucial to assess the availability and long-term cost of these resources. For beverage manufacturing, it is even more critical to make sure that a robust water and wastewater capacity is available in the future, and water quality and reliability is heavily scrutinized and tested.
3. Labor Availability and Workforce Skills
The food and beverage industry relies heavily on skilled and semi-skilled labor for production, packaging, and quality control. Evaluating a region’s labor market—including wage rates, workforce availability, and training programs—helps ensure that a company can attract and retain the talent necessary for long-term success. Additionally, partnerships with local community colleges and workforce development programs can provide a steady pipeline of skilled employees.
4. Regulatory and Food Safety Compliance
Food production is one of the most heavily regulated industries, with stringent requirements for sanitation, food safety, and environmental compliance. Site selection must take into account local, state, and federal regulations, including zoning laws, permitting processes, and proximity to inspection agencies. A proactive approach to understanding compliance requirements can prevent costly delays and operational setbacks.
5. Proximity to Consumer Markets
Speed to market is a major factor in food and beverage distribution, particularly for perishable goods. Locating near key consumer markets reduces transportation costs and lead times while improving responsiveness to market demand. Analyzing demographics, consumption trends, and regional demand helps optimize site selection for market reach and brand positioning.
6. Cold Storage and Logistics Infrastructure
For companies dealing with refrigerated or frozen products, access to cold storage facilities and efficient transportation hubs is crucial. Evaluating warehouse infrastructure, intermodal capabilities, and trucking networks ensures that perishable products move quickly through the supply chain while maintaining quality and safety.
Conclusion
Choosing the right location for a food and beverage facility requires a strategic approach that aligns with operational needs, supply chain efficiency, and market dynamics. At Land Strategies, LLC, we leverage our expertise in site selection and economic development to help our clients navigate the complexities of the location strategy. By prioritizing supply chain access, utilities, workforce availability, regulatory compliance, consumer proximity, and logistics infrastructure, businesses can position themselves for sustainable growth and success.
If your company is evaluating locations for a food and beverage facility, Land Strategies is here to provide expert guidance. Contact us today to discuss how we can support your site selection needs.
