Farmer Bros. Co.

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After 103 years in California, Farmer Bros. Co. (“Farmer Brothers”) decided to undertake an initiative for cost reductions and operational efficiencies that eventually led to the consolidation and relocation of the company’s corporate headquarters, manufacturing and distribution operations to Texas. 

Farmer Bros. Co. – Headquarters, manufacturing and distribution location strategy and incentives

Farmer Brothers is creating a showcase facility that will serve as an ideal location to bring current and prospective clients and highlight the Company’s attention to quality, craftsmanship and food safety.  Further, Farmer Brothers expects the headquarters to be LEED® Silver certified.

The new headquarters, manufacturing and distribution operation is expected to create over 300 jobs for all levels including C-Suite, management, shared services (HR, IT, Sales, marketing, accounts payable/receivable, finance, operations, etc.), warehouse, distribution, administrative, etc.  Farmer Brothers plans to invest approximately $55 million to $60 million in new facility costs for the 500,000+ square foot facility and an additional $35 million to $39 million in anticipated capital expenditures for machinery and equipment; furniture and fixtures; and related expenditures.

To assist with this very emotional and sensitive decision, Farmer Brothers engaged NKF Global Corporate Services’ Location Strategy and Economic Incentives Advisory teams to help find a location that would balance operational cost efficiencies with centralized market access and logistics. The team evaluated the company’s current distribution locations and analyzed labor, demographics, costs and potential economic incentives to help focus the company’s search to Oklahoma and Texas.

The NKF GCS Economic Incentives Advisory team began working with the state and local economic development organizations in both states to determine which programs were available to the project. After months of analysis and negotiations, the company was able to choose a finalist site in Northlake, Texas. An incentive package of an estimated $9 million (USD) was secured from the state, county and town to assist with construction, job creation and cost mitigation. The incentives include real and business personal property tax abatements; pay per job cash grants; real estate and construction tax reimbursements; and a street, water tower, and convention center named after the company. The NGKF GCS Economic Incentive Advisory practice will also help the company with compliance and reporting to the town, county and state.

NKF GCS joined the company at their groundbreaking ceremony on August 11, 2015 and the building is expected to be completed by December 31, 2016. The project also won the Best New Industrial Deal award at the 2016 D CEO Commercial Real Estate Awards.
 

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