Muller Quaker

Press release:

State-of-the-art production equipment from the former Muller/Quaker Dairy greek yogurt plant in Batavia, New York, will be offered at auction Sept. 13 by Harry Davis & Company.

Dairy Farmers of America (DFA) this week announced the facility — originally constructed by Muller-Quaker to process yogurt via a joint venture formed in 2011 between PepsiCo’s Quaker Oats Co. unit and Germany’s Theo Müller Group — has been purchased by HP Hood LLC. HP Hood will invest more than $200 million over several years to repurpose the 363,000-square-foot, currently idle processing facility to produce extended shelf-life beverages.

Meanwhile, the remaining state-of-the-art production equipment is being offered at auction by Harry Davis & Company.

Leonard Davis, president and senior appraiser for Harry Davis & Company, says this is a rare opportunity for processors to purchase equipment from 2012 or newer that was used for only 18 months of production time.

“This is a virtual showroom of equipment,” he says. “It’s a tremendous opportunity for the dairy world to purchase this equipment.”

He notes in particular the equipment available for production of Greek yogurt, which has soared in popularity at retail.

In addition to getting ultra-modern equipment at significant savings, Davis says it’s a rare opportunity to get equipment of this quality so quickly.

“Typically, if you wanted to get one of these filling machines, you’re looking at 18-24 months of lead time,” he says. “This is an opportunity to acquire like-new equipment well below new cost and have it installed and running in a matter of weeks.”

Some of the featured equipment, valued at $200 million, includes: • Aseptic S/S Silos & Tanks
• Pasteurization, Homogenization & Culture Injection
• Finnah Horizontal Form, Fill & Seal Packaging Lines
• Hamba/Oystar A+F Filling Line
• Kasag Fruit Batch Cooking Plant.

Since the former yogurt plant added fruit to some of its varieties, state-of-the-art fruit processing equipment also is available, including a fruit receiving, sorting and cutting system, Davis notes.

“There’s a complete fruit production sub-facility within this plant,” he says. “It’s highly desirable not only for other yogurt manufacturers, but also those involved in jam and other fruit manufacturing.”

Additional general plant and spare parts also are available.

Harry Davis & Company is seeking buyers from North America, South America and Europe. Interested parties can access the auction online at http://bit.ly/MullerHDC. The auction will be held at 9:30 a.m. Eastern Time Sept. 13. 

Photos provided. (click here for more photos)

This is the third in our series of profiles of the 2014 Chamber of Commerce Award winners. The awards will be presented at a dinner at the Clarion Hotel on Saturday.

When a manufacturer impacts a region economically like Muller Quaker Dairy has, that’s a big boost for the area. When that manufacturer also turns out to be an outstanding corporate citizen, then it should be recognized. And it has been. The Genesee Chamber of Commerce named Muller Quaker Business of the Year for 2014.

Muller Quaker Diary is the biggest dairy manufacturing plant to open in Genesee County in 55 years. It’s provided a huge boost economically to the region. It pumps as much as $150 million annually into the local dairy and fruit farms. That’s on top of the $206 million capital investment Muller Quaker made to build the giant production plant in the Ag Park location. Plus, Muller Quaker sources all milk for its yogurt locally.

Muller Quaker Boosts Local Economy

The facility also provided about 160 new jobs — all of which are at the computerized facility. With a new production line starting in the fall, Muller Quaker expects to add as many as 20 to 30 additional jobs to the plant’s payroll. This is in addition many jobs the facility has created in the community’s agriculture, hospitality, and business services sector.

“We have much more room to expand the plant,” says Kevin Williams (pictured), supply chain vice president, who has been with the company about three years. “We built facility so it could grow with our business. And we continue to innovate new and delicious products so we can do just that." 

The facility sits on 82 acres of land in the Ag Park and has three production lines that can produce more than 120,000 cups of yogurt per hour. It can accommodate up to eight production lines with room for future expansion. The Muller Quaker Dairy plant is the largest LEED-certified dairy manufacturing plant in the world.

Makes Impact in Community

In addition to stimulating the area's economy, Muller Quaker makes an impact in the community. Employees invest hundreds of hours annually in community activities, like participating in food drives and supporting the Salvation Army at Christmastime. Muller Quaker also supports local educational projects and gives facility tours for kids and residents.

“We’re involved in numerous community projects,” says Williams. “In fact, we encourage employees to go out into the community and contribute. Put simply, we get involved. And it’s our absolute pleasure to do so. It’s the way we like to operate.”

From a marketing standpoint, the production facility helps Muller Quaker compete in the $6.2 billion U.S. yogurt marketplace. It serves as the national production and distribution center for the Muller brand, which launched in select regional markets in 2012. Its products include Muller Corner®, Muller Greek Corner®, and Muller FruitUp™ varieties. 

The facility’s yogurt helps satisfy the increased demand for value-added dairy products in America, where per capita consumption of yogurt is generally less than half that of Europe. Per capita consumption in the United States has more than doubled in the past decade, according to an article in Food Business News. Retail sales in the United States are expected to approach $9.3 billion by 2017.

Joins Two Powerhouses

The Muller Quaker Dairy joins the complementary strengths of two powerhouse global companies. The Quaker Oats Company, a subdivision of PepsiCo, is among the world’s most recognized and trusted brands. The Theo Muller Group is one of Germany’s largest privately held dairy businesses. It’s also among Europe’s top yogurt producers, making yogurt and other products for more than 100 years.

The Muller Quaker Dairy stands poised to help its parent company dominate the growing yogurt market in the States. By boosting the region’s economy and helping out in the community, it’s increased the region’s optimism -- ample reason to name Muller Quaker the Business of the Year for 2014.