Muller Quaker Dairy

One of the Northeast's largest dairy producers now officially has a footprint in Batavia.

HP Hood, based in Lynnfield, Mass., closed on the deed to the former Muller Quaker Dairy plant on Friday, paying $54,216,000 to Dairy Famers of America for the facility.

DFA acquired the property from Muller Quaker in December 2015 for $60 million.

As part of the deal, Hood agreed to take over the obligations of Muller Quaker for the property, which includes making payments in lieu of taxes (PILOT) along with paying a variety of fees to Genesee County Economic Development Center.

The GCEDC board has yet to improve a new PILOT agreement for the 363,000-square-foot, state-of-the-art milk processing facility, but is considering providing Hood with more than $7 million in tax abatements over 10 years, with an anticipated total economic benefit to the region of more than $330 million.

Hood will pay GCEDC $1.7 in annual installments of $280,000 over six years, starting with an initial payment delivered Friday at closing.

There is also an annual $1,000 administration fee and a $5,000 annual property maintenance fee to assist with maintenance of the Genesee Valley Agri-Business Park, where the plant is located (next to the Genesee County Fairgrounds on Route 5).

Hood is reportedly planning to add a 100,000-square-foot warehouse to what is already the largest dairy processing facility in the United States.

The plant cost PepsiCo and Theo Muller Group $206 million and Hood is planning to invest significantly more into the plant. Reconfiguring the plant from one that made just Quaker Muller's own take on Greek yogurt and adding the warehouse will create more than 500 construction jobs with a payroll of $26 million. 

While Muller Quaker topped out at 162 jobs created, Hood promises 250 jobs at the plant, with an average annual salary of $47,000.

Hood plans to begin construction this summer and be operational by the first quarter of 2019.

Previously:

• New England's large dairy company, HP Hood, buying former Muller Quaker plant
• DFA paying full tax bill on former Muller Quaker plant while officials wait to hear co-op's plans for production
• There will be jobs at the former Muller Quaker plant, Hyde says, we just don't know when
• Quaker Muller closing, but new dairy processing operation expected to open in plant soon
• County officials get high praise from executives, governor for bringing new yogurt plant to Batavia
• Officials optimistic about yogurt and Genesee County with opening of Muller Quaker plant
• Likely buyer for 'Project Wave' plant is PepsiCo

One of New England's largest dairy producers, HP Hood, with an increasing reach into New York, is acquiring the former Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park in Batavia.

The plant has been vacant, except for a few maintenance workers, since Theo Muller Group and PepsiCo dissolved their yogurt-making partnership in December 2015. A month later, Dairy Farmers of America, a dairy farmers cooperative, purchased the 363,000-square-foot, state-of-the-art milk processing facility for $60 million.

Since then, DFA has been mum about its plans for the plant, and for 2017, the company wound up paying all of the property taxes due on the two parcels, more than $650,000, because they were not meeting the employment obligations of the PILOT (Payment In Lieu Of Taxes) agreement Muller Quaker received for the project.

Rumors have started circulating weeks ago that DFA planned to sell the plant to a large dairy producer.

Public documents released by the Genesee County Economic Development Center in advance of a meeting next week where new tax incentives will be considered indicate that Hood is the buyer. It is a 170-year-old company that does more than $2 billion in business annually, and is based in Lynnfield, Mass..

Hood is a subsidiary of Catamount Companies. The owner and CEO is John A. Kaneb, who is also a part-owner of the Boston Red Sox.

News of Hood's purchase is good news to local dairy farmers. Both Shelly Stein of Stein Farms and Dean Norton, former NY Farm Bureau president and owner of a dairy farm in Elba, said anything that creates more demand for local milk helps all farmers.

"Anything that can go into that plant and help with the oversupply of raw milk that we have in the Northeast right now, that would be good," Norton said.

Norton said he has met Kaneb a couple of times.

"He's a good guy and it's a pretty solid company," Norton said.

Bill Baskin, owner of Baskin Livestock in Bethany, got his start in the dairy business in Massachusetts, so he is very familiar with Hood and said it's a good, old, old, old company with deep roots in Boston.

The funny story, he said, is that his great uncles had a 700- or 800-cow dairy farm back in the 1940s and they didn't like the price they were getting from Hood for milk, so they started their own bottling plant, which years later they sold.

Both Stein and Norton are DFA members. Norton said he doesn't know, but he would expect that DFA will become the supplier of milk for Hood's operations.

Monica Massey, senior vice president and chief of staff for DFA, said she could not confirm the transaction with Hood.

"We are getting close to finalizing an agreement," she said.

Massey said DFA acquired the plant as a "strategic opportunity" because the region is an important and underserved milk shed.

Asked if DFA would supply milk to Hood, Massey said, "We acquired the facility because we thought it would benefit our member-owners." That is still the goal, she added.

Hood's purchase price for the former Muller Quaker plant has not been released, but GCEDC documents indicate that Hood plans to add another 100,000 square feet to the plant, which is already considered the largest in the United States, for a warehouse.

How much that additional investment will cost is not disclosed in the documents.

While Muller Quaker topped out at 162 jobs created, Hood promises 250 jobs at the plant, with an average annual salary of $47,000.

Hood plans to begin construction this summer and be operational by the first quarter of 2019.

Construction will create 524 jobs with a payroll of nearly $26 million.

The original cost of construction for the plant was $206 million, which is the cost of capital investment still tracked by GCEDC for its accounting purposes.

The GCEDC board will be asked to consider reinstating the PILOT, which will provide Hood with more than $7 million in tax abatements over 10 years, with an anticipated total economic benefit to the region of more than $330 million.

Hood has been expanding into New York and other parts of the United States over the past few years. In 2004, the company acquired Crowley Foods, based in Binghamton. It's also acquired dairy companies in Minnesota and Sacramento, Calif.

Eric Zuber, a local dairy farmer and VP of Upstate Niagara Milk Cooperative, said he hasn't heard what Hood plans to do with the plant, but like Stein and Norton, he believes anything that will "soak up some of the milk supply" is a good thing.

"There sure is a lot of milk around right now," he said. "A little more capacity with the right thing is a good thing. We need more processing capacity. I don't care where it comes from."

Hood and Kaneb, he said, have a good reputation in the dairy industry.

"He’s done a fantastic job with (Hood)," Zuber said. "They know how to manage a milk plant. Whatever they decided to do, I'm sure it's going to be first class."

The former Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park is a big, gorgeous (if you're into such things), state-of-the-art dairy processing facility and Dairy Farmers of America officials think it has great potential. But they just don't know what to do with it yet.

DFA has yet to submit planning documents to the Town of Batavia and at the County's Ways and Means Committee. Today, Steve Hyde, CEO of the Genesee County Economic Development Center, said there are ongoing negotiations about the future of the plant, but he can't discuss them.

Hyde did say there are businesses interested in acquiring the plant outright and DFA is in negotiations with potential partners, but nothing is settled to date.

"They are fully committed to bringing milk into the plant and sending out dairy products," Hyde said.

There will be jobs in that plant again, Hyde said. It's just a matter of when and what business model either DFA or some other suitor decides to pursue.

Negotiations are ongoing.

DFA acquired the plant, which cost $206 million to build, for $60 million in January.

PepsiCo and Germany-based Muller Dairy formed a joint venture, Muller Quaker Dairy, to create tasty yogurt products designed to capture a portion of the growing Greek yogurt market, though the yogurt produced by the plant wasn't exactly Greek yogurt.

Whether through lack of marketing (either enough of it or the right message), lack of good distribution or lack of consumer interest, the product never caught on (though there was, according to sources, $100 million in first-year sales); the joint venture was dissolved and the plant closed in December 2015, costing about 200 people their jobs.

There are, we are told, still three former Muller employees on site, keeping the plant maintained so that when somebody does decide to do something with it, everything is in working order.

How much money Muller lost on the joint venture isn't known, because Muller isn't a publicly traded company. PepsiCo is, and the company took a $78 million impairment charge in 2015. An impairment charge is a somewhat complex accounting term that can mean a write-off on a loss of fair market value.

With gross sales of more than $66 billion annually and a net profit of nearly $10 billion, the write-down warranted nothing more than a footnote in PepsiCo's 2015 annual report.

The Wave Project, as it was initially known, did receive some subsidies along the way to assist in construction and starting production, but Muller Quaker never qualified for all of the subsidies it signed up for.

The PILOT (Payment in Lieu of Taxes), mortgage tax abatement and sales tax abatement on construction totaled about $11 million, but Muller Quaker never benefited from most of that tax relief. Since the PILOT is spread out over a 10-year span, as a reduction in property tax on the increase in assessed value, with the size of the abatement declining over time, Muller Quaker doesn't benefit for any of the PILOT relief from 2015 onward. The new owners, DFA, or other, could benefit from the PILOT until it expires (or is replaced by a new agreement as part of a new business being established).

From Empire State Development, Muller Quaker was promised $4.5 million in tax credits tied to job creation. As a result of creating 446 jobs in 2013 and 2014 (the number is combined for the two years -- one job in one year warrants credits for that year, and the same job, still in place, counts in the second year, and so on), Muller Quaker received $556,446 in tax credits, not the $4.5 million originally offered.

The company was offered, and received, $995,000 from New York State Homes and Community Renewal.  The grant was based on meeting specific investment and job-creation goals. 

New York State Energy Research and Development Authority (NYSERDA) also made a commitment for nearly $2 million to offset the cost of installing energy-efficient equipment and HVAV measures that would lower costs at the plant. Only $1.2 million had been awarded prior to the plant closing.

The New York Power Authority awarded a 1.3-megawatt grant of power under the ReCharge NY program and the plant used the full allotment of the grant.

It's a tough time of the year for people to lose jobs, said Steve Hyde, CEO of the Genesee Economic Development Center, but there is a silver lining on the dark clouds hanging over the Quaker Muller Dairy Plant.

A large dairy processing organization is close to closing a deal to purchase 320,000-square-foot plant, which cost PepsiCo and Muller Group an estimated $200 million to build. 

"We expect it won't take long and they will employ lots of folks," Hyde said. "Probably more than Muller Quaker and it will be good for Western New York dairy farmers."

While details of the plant closing are not available, some sources indicate it won't close immediately, even so, right before Christmas is a hard time to hear you might be out of a job soon, Hyde acknowledged.

"It is a sad day, especially this time of year, and we're all very sad about it, but there is a silver lining," Hyde said.

The GCEDC is already working with the Job Bureau to find suitable replacement jobs for Muller Quaker employees, along with job search assistance and transition training, Hyde said. There may be a job fair to assist workers. Hyde noted there are a lot of local job openings right now.

While Pepsi and Muller made a substantial investment in the plant, they did so with the backing of the state and the local IDA. The state promised Pepsi/Muller some $14 million in tax credits, but those tax credits were contingent on meeting specific job creation goals.

Quaker Muller never went beyond its Phase I goals, which was a bit less than 200 jobs, Hyde said, so the company received "only a fraction" of the anticipated tax credits though Hyde did not have the exact amount of tax credits awarded immediately available.

The project was also eligible for $11 million in tax abatements related to the improvement of the former farm field, mostly in the form of a Payment in Lieu of Taxes on the increase in assessed value. Such tax abatements are not a direct subsidy but are only realized if the project is built and the property tax assessment goes up. The next owner, assuming there is one, will inherit the PILOT.

There were also federal grants that have gone into the creation of Genesee Valley Agri-Business Park that did not directly benefit Quaker Muller, but provided infrastructure, such as sewer and roads, to make the plant construction possible.

Hyde said it's impossible to say, at this point, when this dairy processing organization might complete its acquisition of the plant, but he is optimistic the deal will go through. 

UPDATE 6:15 p.m.: Empire State Development has issued the following statement: “Empire State Development will be working with the new plant owner, DFA (Dairy Farmers of America), to restart operations soon.”

UPDATE 6:20 p.m.: Assemblyman Steve Hawley said he was briefed on the plant closing last night and only recently learned of DFA's purchase plans. He's hoping DFA will rehire the displaced Muller workers. "I'm not sure what the future holds, but we're moving forward and I hope this shutdown is short term." 

UPDATE: Statement from DFA: "DFA has agreed to acquire the Muller-Quaker Dairy Plant in Batavia, NY. The acquisition is a strategic one for DFA as it is in an important milkshed for us. This facility creates multiple potential milk handling and dairy manufacturing opportunities. We are currently exploring these."

Previously: Developing: Muller Quaker plant reportedly closing

Muller Quaker Dairy apparently announced the closing of its Batavia yogurt plant today.  We have not been able to confirm that announcement with the spokeswomen for Muller Quaker.

GCEDC issued this statement a few minutes ago.

“While we are extremely disappointed about today’s announcement by Mueller Quaker Dairy, we are optimistic that the state-of-the-art manufacturing facility will continue to play a key role in the agricultural sector in our region, including remaining a major employer.

“The Genesee Agri-Business Park where the facility is located is a community asset and it continues our strategy of building and marketing sites targeting industry clusters. 

“Regardless of this announcement, we will continue to enhance the infrastructure at the Ag-Park in our efforts to bring new jobs and investment to Genesee County in the agricultural sector.

“Our immediate focus in the meantime is to do everything we can to assist the impacted employees.”

Local photographer Jim Burns is featured for the next three months at Muller Quaker Dairy with some of his photos. 

The Genesee-Orleans Regional Arts Council (GO ART!) rotates photos at the dairy for people that come to visit to take tours and also for employees to view. 

The display will be up until Sept. 30^th. 

More of Jim Burns' work can be found here: Jim Burns Photography

Press release:

The Genesee County Economic Development Center (GCEDC) and Muller Quaker Dairy are the recipients of the 2014 Northeastern Economic Developers Association (NEDA) Project of the Year Award. The award was formally presented to both entities at NEDA’s Annual Conference on Monday, Sept. 8th in Worcester, Mass.

GCEDC was recognized for fostering the development of the 250-acre Genesee Valley Agri-Business Park in Batavia, which has generated more than $230 million of new capital investment as well as the creation of approximately 230 jobs. NEDA also recognized Muller Quaker Dairy, a $206 million state-of-the-art yogurt manufacturing facility, which employs almost 200 people in the Agri-Business Park in the competitive $6.2 billion U.S. yogurt marketplace.

“On behalf of the GCEDC Board of Directors and staff we are honored to be recognized by NEDA,” said Steve Hyde, president and CEO of the GCEDC. “I want to thank Governor Cuomo for his personal commitment in bringing Muller Quaker Dairy to Western New York and his tireless efforts to improve the economic development climate throughout Upstate New York.”

Muller Quaker Dairy is projected to have a regional impact of approximately $150 million annually on the local agriculture, hospitality and business services sectors. Indirect job creation is projected to add another 750 workers to the regional labor force.

“This project is a great example of public and private sector collaboration especially in significantly compressing the timeline for various government approvals,” said Chris Suozzi, vice president for business development at the GCEDC. “Through the collaboration with Empire State Development, the Greater Rochester Enterprise the Buffalo Niagara Enterprise, National Grid, Genesee County, as well as the City and Town of Batavia, we were able to make the case that Batavia and the Agri-Business Park was the perfect location for Muller Quaker Dairy."

Muller Quaker Dairy is a joint venture between one of Europe’s largest dairy processors, Germany-based Theo Muller and New York-based PepsiCo. It is the largest manufacturing plant ever to open in Genesee County.

The NEDA Project of the Year award recognizes a major economic development project based on job creation and other direct economic impacts; capital investment; leveraging of development resources; use of public/private and/or intergovernmental partnerships; benefits to the surrounding community and/or environment; innovation; design excellence; and transportation considerations.

Genesee County Emergency Services and the Town of Batavia Fire Department conducted a confined spaces drill yesterday at the Muller Quaker Dairy plant.

Nationally, from 80 to 100 people die every year in confined space accidents and even rescues can be difficult and dangerous.

Photos submitted by a reader.

An executive of Batavia-based Muller Quaker Dairy tells an food industry news Web site that the yogurt maker is on pace to reach $100 million in annual sales in the U.S.

"Promotions are playing a role," Barb Yehling, chief marketing officer at Muller Quaker Dairy, told Foodnavigator-USA.com. "However, at the end of the day it’s product quality and taste that matter to consumers. Again, this is where Müller yogurt excels."

Yehling said the company is focused on innovation and meeting unmet needs to bring to the American public a Greek-style yogurt that is fun and flavorful.

Here's a little fact about Genesee County you may not know: Batavia's largest food processing plant is kosher.

Kosher, as in certified by a rabbi.

That means no animal -- except fish -- products are used in the plant's food production, as in no cow or pig parts to make gelatin.

A few days ago as I passed through the Tops check-out line with six containers of Frut Up (I really wish they would sell this in a six-pack container), the cashier said, "did you know there's tilapia in this?"

Heck, up to that point, I didn't even know what tilapia was. Some sort of fish, I recalled dimly.

When I got home, I read the label a little closer. Yup, tilapia is listed. So is "kosher gelatin."

If you know your history of Jell-O (and who doesn't in Genesee County), you know gelatin was originally made with from pork and pork skins, horses, and cattle bones or cattle hides. 

Those are all animals that in a kosher kitchen can't mix, even a single molecule.

As it turns out, you can also make gelatin from tilapia, and since observant Jews can mix fish and dairy, if you want fruity gelatin with your yogurt, and you want it to be kosher, you need tilapia to do it.

Rabbi Doctor David Sheinkopf inspected the Muller Quaker plant in Batavia and as a result, the yogurt products Frut Up and Corner can be sold as "Certified Kosher," according to Scott Gilmore, spokesman for PepsiCo.

"Taste is important and we use the best ingredients," Gilmore said. "We aim to make the best tasting yogurt on the market, but consumers told us it (kosher yogurt) was important to them and we wanted to honor that request."

Throughout the 90-minute opening ceremony for the new Muller Quaker Dairy Plant in the Genesee Valley Agri-Business Park, Steve Hyde sat in the second row and smiled.

Not one speaker -- and there were five of them -- mentioned Hyde by name. There was no official recognition of his work to bring this day about.

Still, he smiled.

You couldn't help but think of a proud father watching his son or daughter graduate.

Asked how he felt afterward, Hyde, as he usually does when posed such questions, demurred and praised others.

"It’s a great day for everybody in the community," Hyde said. "This was a dream of mine and a lot of other partners. It’s 10 years in the making and this is just phase one."

Hyde has his critics. Genesee County Economic Development Center, the organization he runs, has its skeptics. But the Muller Quaker plant is a big deal, especially for a county of only 57,000 people that hasn't had a big factory opening in more than five decades.

PepsiCo and Theo Muller Group invested $200 million in the facility and that dollar figure doesn't count product development, designs for new trade-secret machinery to create the Greek-style yogurt, new software to run the plant and the planning that goes into bringing a new product to market.

Ken Adams, president of Empire State Development, indicated he was a little bit awed by the idea of a global powerhouse like Pepsi and a German-based company like Theo Muller coming to Upstate New York.

"Having PepsiCo here, having Muller here, is like a global seal of approval for this park and its infrastructure," Adams said.

And he gives a lot of the credit for making it happen to Hyde.

"Steve Hyde as far as I’m concerned, he really put the agri-business park, this particular location, on the map at a statewide level," Adams said. "Steve is always in Albany working very closely with the legislators from the area, senate and assembly, working very close with the governor’s office.

"I’ve told this to him, so I'll say it to you," Adams added, "Steve Hyde is a forceful, well respected advocate for investment and economic development here in Batavia. He really put the site on the map and then he also pulls everybody together at the local and state level to make sure a project like this actually goes smoothly. That’s important for the company, for the investors, that there are no hiccups along the way."

A critical factor with Muller Quaker -- called Project Wave during the planning process -- was the speed at which all of the necessary permits could be secured. A lot of credit goes to Town of Batavia and Genesee County officials, but the GCEDC staff laid the ground work to have a shovel-ready site and push the paperwork through the process.

In his speech today, Theo Muller praised the local authorities who got approval for the plant so quickly.

"It would be unimaginable in Germany," he said with a wink. "In Germany that would have taken at the very least three years. You have to send a whole case of yogurt to them over there to get anything done."

Sen. Charles Schummer called the ag park a great idea of local leaders and said when GCEDC came to him for help, he was happy to jump in and secure federal grants for infrastructure.

"There is no better way to strengthen our dairy industry and create jobs than to build a park like this, which has helped attract this great company," Schumer said.

Assemblyman Steve Hawley, who helped with the state legislative process on the project, noted that in any big project like this, stretching, as it does, across the boundaries of local, state and federal responsibilities, there are a lot of people who deserve credit for bringing it together, but Hyde certainly provided critical leadership.

"This is a big deal," Hawley said. "It's one of the largest plants in the country. We need jobs. I hear about it every day from constituents."

It takes a lot of work, Hawley said, to untangle the regulations that can hold up a business and a lot of people had a hand in bringing it together.

"A lot of the credit goes to Steve, but it's a team effort," Hawley said.

Danny Wegman, CEO of Wegmans and president of the Finger Lakes Economic Development Council, is also a Steve Hyde fan. He believes Hyde will pull off the gargantuan task of developing WNY STAMP, the proposed 1,200-acre, high-tech manufacturing park in Alabama that could employ 9,300 people some day.

It's an audacious project, but Wegman said when there are people passionate about projects, they can make things happen.

"Steve is very excited about this," Wegman said last week during the governor's visit to Genesee Community College. "There are a lot of confidential things that can't be shared, but I feel confident that if somebody I believe in is excited about it, the chances of it happening are pretty good."

The success of the ag park only enhances the chance's of success with STAMP, Adams said.

"We’re very hopeful," Adams said. "It’s a globally competitive industry. The opportunity is at STAMP. It’s a great site. It’s much bigger than this site, the agri-business park, but Steve has done a good job at lining up all of the vital ingredients for that site -- power, water, obviously the land, permitting, all the things you need to really be shovel-ready when the right business comes along. He’s the chief marketer. He’s going to Albany tomorrow. He’s on it and he works very closely my colleagues at ESD on marketing STAMP, so we have our fingers crossed."

Hyde said it's all about building on the natural assets of Batavia and Genesee County and showing that can be done with the ag park will translate into confidence for other projects, such as STAMP.

"It helps build credibility in the eyes of some of the folks in the leadership roles in the state that we know how to do this here at the local level," Hyde said. "This (agriculture) is an industry where the regional assets were in great demand and we could make an impact, and when you look at the regional assets in the nano stuff in our region we’ve got the same situation developing."

According to Indra Nooyi, CEO of PepsiCo, Batavians owe a big thank you to Danny Wegman.

No, not for promising one of his unriviled grocery stores to Genesee County, but for steering her attention toward yogurt and the need to produce it in Western New York.

"When I visited Danny in his flagship store in Rochester, Danny said to me, ‘Indra, you should get into the yogurt business because it’s growing extremely rapidly and if you do, the plant has to be located right around here in Upstate New York,' " Nooryi said. "I listened to Danny  because Danny is one of the most respected thinkers in the industry, and, Danny, we delivered on the promise.”

Wegman stood at the back of a tent crowded with local and state dignitaries and smiled broadly.

Last week, Wegman told The Batavian that it might take build out of the STAMP project in Alabama to bring a Wegmans to Batavia. Today, Wegman (top inset photo) had a slightly different take.

Coming out from a tour of the new Muller Quaker Dairy plant, he said, "more projects like this and we'll be here."

The dairy plant -- which will manufacture two brands of Greek-style yogurt, Muller FrutUp and Muller Corner -- officially opened today.

To start, it operates three production lines, employs 180 people in a 350,000-square-foot facility that could one day accommodate as many as 16 production lines.

Already, the plant produces 120,000 cups of yogurt per hour.

Sen. Charles Schumer announced during opening ceremonies that Muller Quaker has reached an agreement with the Upstate Milk Cooperative to source all of its milk from WNY dairy farmers.

The OA-TK-A plant in Batavia will produce the milk protein that Muller Quaker uses in its yogurt production (rather than strain milk as done in traditional Greek yogurt production, Muller Quaker adds protein to give its yogurt a similar rich, silky texture).

"This is an amazing shot in the arm for our economy here in Western New York and I am pledged to continue to do whatever I can do to make this the most successful venture in Western New York," Schumer said.

The project brings together two companies -- the worldwide giant in the food and beverage industry, PepsiCo, and a much smaller, but well respected, dairy company from Germany, the Theo Muller Group.

Stephan Muller, who moved to the United States to assume the reins of the new company, spoke about the entrepreneurial spirit, the risk taking of the $200 million investment by the two companies.

Muller represents the fifth generation of Mullers in the dairy business.

His father, Theo Muller, said through a translator, that the company made previous attempts to break into the U.S. market.

Stephen Muller described his father as a bit of a technophobe who never used a computer and then he got an iPhone just after Stephen Muller arrived in the U.S.

"He sent me a text message," Muller said. "I think it was his first one or one of his first ones. He said, ’520 years ago Christopher Columbus started his journey west with just three ships. Now you are our Columbus. Capital, excellent knowledge now are your ships, and one thing one cannot buy, the iron will to have success."

Nooyi (second inset photo) believes the product will be successful

PepsiCo already has a track record of success of developing a balanced portfolio of food and beverage products that she described as "fun for you, good for you and better for you."

"PepsiCo is becoming a real force in the good-for-you space," Nooyi said. "We have the best go-to-market systems and superior marketing, combined with Muller’s leadership in phenomenal dairy products, I think we’re going to become a real force in the dairy business in North America."

The success in just getting the plant open bodes well for Batavia, Schumer said. With 90 acres of available space at the Genesee Valley Agri-Business Park, there will likely be more jobs coming to town.

"We could employ as many as 1,200 more people when the food processors learn of the transportation advantages, the food production advatnages and just the work force advantages that we have here in this area," Schumer said.  "Food processors from around the world are learning what we have to offer."

Ken Adams, president of Empire State Development, said the success of today's opening is something that will attract more investment in the park, especially in supply chain support for Muller.

"It’s a very powerful confirmation of this facility, the agri-business park as a center for international investment," Adams said. "One thing I’m struck with at this ceremony is you’ve got a global leader like PepsiCo partnering wth Muller and obviously Quaker, the PepsiCo brand, coming together right here in Batavia. The project confirms Batavia, Genesee County’s position, certainly in the Northeast if not North America, as a center of the yogurt universe."

To purchase prints of these photos, click here.

If you've wondered what Muller Quaker Dairy is all about, or want to find out about employment opportunities, today was the day to meet executives, try out some yogurt or put in a job application at GCC.

Hundreds of people turned out in the afternoon and the event continues until 8 p.m. in the forum.

"We're excited to be a part of the local community, so we wanted to open our doors and let people know a little more about us," said Scott Gilmore, director communications for PepsiCo, one of the partners in the new yogurt plant at Genesee Valley Agri-Business Park.

There were executives on hand to explain plant design and operations, the booming yogurt industry and the nature of the partnership between PepsiCo and the Germany-based Theo Muller Group.

The yogurt plant is expected to employ nearly 240 people in its first round of hiring, and some local residents have already landed jobs with the company.

Muller Quaker HR personnel were on hand today accepting applications, meeting with job candidates and explaining more about employment options at the new plant.

At one point today, the job applicant line was more than a couple dozen people long.

Gilmore said people in blue jeans and people in suits showed up today, demonstrating the diversity of jobs that will be available at the plant.

If you're not able to make it to GCC by 8 p.m., Gilmore said the company plans more such community events, or job applicants can e-mail their resumes to employment@mullerquaker.com.

PepsiCo and Theo Muller officials along with Gov. Andrew Cuomo praised the efforts of local leaders to convince the two international companies to locate their new yogurt plant in Batavia.

The executives, elected officials along with a host of local dignitaries gathered at the new Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park today for a dedication ceremony for the new plant.

Indra Nooyi, CEO of Pepsi, said once it was time to make a decision about the location for the plant, Batavia was an easy choice.

"I must say the Genesee County people and the governor’s office were just amazing in the way they worked with us," Nooyi said. "There was no competition. We love being here. The Genesee County people have to be given a lot of credit, the way they brought the forces of the county together to get everything expedited in such a short time. I think it is a real textbook example of how to attract investment into any community."

Stefan Muller, the CEO of the newly formed Muller Quaker Dairy company, said the day that executives traveled to the Genesee Agri-Business Park, the amount of support Genesee County lined up for the visit was impressive. There were representatives from local government and utility companies making promises on delivery of what Pepsi and Muller would need to build the project.

"I have seen 60 sites that were just locations on a map and I have seen six sites personally, but what we saw here was just outstanding," Muller said. "We were promised to get all of the permissions within weeks and we couldn’t believe it."

Gov. Andrew Cuomo also praised Genesee County officials and said the effort to bring the Muller Quaker plant to Batavia is an example of how New York is open for business.

“We want business in New York," Cuomo said. "Business is the engine that drives the train, providing the jobs, providing the opportunity, providing the career ladder, providing the revenues to local governments. It’s all about making the private sector run and making the private sector run well and government partnering with that private sector. “

Yogurt, Cuomo said, is quickly becoming a big part of New York's economy -- production is up 60 percent in the past few years and there are now 49 yogurt plants in the state. He said the state is committed to ensuring the yogurt industry succeeds.

"We believe in the yogurt story and we’ve invested in the yogurt story," Cuomo said. "It is a big, big business in the State of New York."

He announced an Aug. 15 summit of leaders in the yogurt industry and dairy leaders to help facilitate, he said, the two groups working together to grow the yogurt industry.

"We want this business to do well," Cuomo said. "We want this business to thrive and we want this business to thrive in the State of New York."

Pepsi is committed to growing in the nutritional food categories, and dairy in particular, Nooyi said.

"Dairy products are a $500 billion industry that is expected to grow rapidly in the high single digits," Nooyi said. "We believe that here in the United States the growth potential for dairy is virtually unlimited."

The yogurt market, she said, is "largely untapped." The per-capita consumption of yogurt in the U.S. is half what it is in many other countries."

Muller said the new product is sweeter than what Theo Muller makes in Germany to meet U.S. consumer expectations and Nooyi praised the new yogurt.

"The Muller Quaker Dairy line is going to bring a whole new taste experience to America that’s not like anything that’s available in the country today," Nooyi said. "Try it and you’ll see that it’s more rich than any other yogurt you've tasted.

"It’s creamier. It’s more delicious. It doesn’t have any chalky aftertaste. It's really something you’ll enjoy eating day in and day out, maybe even three or four times a day."

Muller said the online feedback on the new product has been fun to read.

"I read on the Internet, on a blog, one consumer was writing, she tried the product two weeks ago and she is writing it is insanely delicious," Muller said. "This was really, I think, the right comment."

Both chief executives praised their new business partner as the perfect fit for how each company would like to grow.

"I have to say it was good and smart that we took the time because we found the right partner with PepsiCo and the yogurt market is booming," Muller said. "It’s still a very small market compared to other countries and we have products which are very unique and are really outstanding for the American market."

Nooyi said Pepsi has the distribution system to get the new product onto store shelves throughout the United States.

She also said the two companies share a core value in being committed to their local communities.

"One of the reasons this is a great partnership is both companies are committed to growing our businesses and both are committed to growing our local communities," Nooyi said. "When this plant is complete next year, it will be one of the largest yogurt plants in the United States. It’s going to source largely from New York State dairy farmers and other quality suppliers around this great region. The best part is it will create 186 local jobs next year."