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Case Study

Del Monte Atlanta

Situation/Process

  • When Del Monte – a leading producer of canned fruits, vegetables and tomato products – completed its largest acquisition to date with the purchase of several product lines from the H.J. Heinz Company, another facility and distribution network needed to be incorporated into its system.
  • We assisted in a distribution network optimization study that determined the best solution would be to consolidate several locations into one large distribution center serving the entire Southeast United States. Since Del Monte’s distribution system required rail service, sites of 35 to 50 acres were identified along rail lines.
  • After investigating options to expand existing buildings, we recommended the build-to-suit construction of a new facility after determining that the cost would be no higher to the company.


Results

  • By carefully researching the tax incentives offered by a number of counties, we were able to identify a rail- served site that reduced Del Monte’s property tax payments by more than $650,000 over the 10-year lease term.
  • The 780,000-square-foot distribution facility in Atlanta features several design elements – including improved material handling systems, 220,000-square-foot expansion capability, ample trailer parking and high ceiling height – that improve the efficiency of Del Monte’s distribution operations.

*The work performed in this case study was completed by Ray Dankberg prior to his employment with Jones Lang LaSalle in 2010.

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