Brice Wallace
A pair of food manufacturers have found Utah fits their hunger for expansion.
Ya YA Foods and Utah Flour Milling LLC will grow by 302 and 31 jobs, respectively, over the next few years after receiving tax credit incentives from the Governor’s Office of Economic Opportunity board.
Ya YA’s $92 million project over 10 years in Ogden will be the company’s first operations outside of its home base in Canada. Meanwhile, UFM’s $79 million project in Richmond in Cache County will add the jobs over the next five years. As part of a partnership with Campbell’s, UFM will build a flour mill adjacent and connected to the Campbell bakery and aid in its production of Goldfish snack crackers and Pepperidge Farm products.
Privately owned Ya YA Foods has over 30 years’ experience in beverage and liquid food manufacturing. It began by producing juice products and now produces plant-based milk for companies such as Oatly, high-protein beverages, juices, broths, sports drinks, dairy-based drinks and more.
“This is Ya YA Foods’ first expansion in the U.S.,” Yahya Abbas, founder and CEO, said in a prepared statement. “This investment will expand our capacity, add a significant number of new jobs, and contribute to the economic growth in Weber County.
“It is important for us to invest and grow in a location where there is both a good business climate and an available and skilled workforce. We have found Utah to be such a place. We want to thank the state of Utah for supporting our exciting project.”
Abbas told the GOEO board that the company has about 1,000 employees and hopes to have 1,400 by the end of 2024.
“We are very pleased to support the expansion of Ya YA at our Business Depot Ogden,” Brandon Cooper, director of community and economic development for Ogden, told the board. “This company represents … our core business strength here in Ogden City and Weber County, which is production, manufacturing and research and development. So we’re very pleased to see the investment that they’re making both in capital and jobs.”
The GOEO board approved a tax credit of up to $1.8 million over 10 years, plus a nonmatching Industrial Assistance Account grant of $150,000 for talent development. The project is expected to generate new total wages of nearly $197.2 million over 10 years and new state tax revenue of about $9 million during that time. The new jobs are projected to pay an average of $67,168.
“We are thrilled to see Ya YA Foods expanding not only into Utah but into the U.S.,” Ryan Starks, GOEO’s executive director, said in a prepared statement. “Supporting this expansion aligns with our economic vision, fostering growth and job opportunities. The many jobs that result from this expansion will enhance our economic landscape and continue to build Utah as an ideal home for the food and beverage industry.”
“Ya YA Foods will benefit from northern Utah’s prosperous workforce,” said Chris Roybal, president of the Northern Utah Economic Alliance. “The company’s commitment to health and wellness aligns with the work-life balance that sets our region apart.”
“Ya YA Foods’ expansion in Utah resulted from incredible collaboration among ‘Team Utah’ partners,” said Scott Cuthbertson, president and CEO of the Economic Development Corporation of Utah. “Oatly made its first decision to locate in Utah in 2019, and Ya YA Foods is well-positioned to build on that success, demonstrating the ongoing impact of economic development on Utah’s prosperity.”
The Utah Flour Milling mill project in Richmond is a partnership between PHM Brands’ Panhandle Milling and NIPPN Corp., Japan’s first private mechanical flour milling company and a leading manufacturer of flour. UFM will focus on producing flour for industrial bulk and pack customers.
Jennifer Harnish, who leads human resources and customer experience for UFM, said the mill will serve Campbell’s but also have capacity to serve West Coast and other customers with their retail needs.
“We’re excited to build a mill, we’re excited to be able to leverage technology, and we’re excited to partner locally with the agricultural teams there,” she told the GOEO board.
“This is an exceptional opportunity to expand our current operational reach in the flour milling industry and establish valuable supplier relationships with local farmers both within Utah and in neighboring states,” Peter Bisaccia, president of PHM Brands, said in a prepared statement. “With state-of-the-art milling, mix, pelleting, and packaging capabilities, the facility will support retail, food service, and bulk rail and truck markets, in addition to private-label production and co-manufacturing. The facility will be the most modern, efficient and technologically advanced flour milling facility in the region.”
Shawn Milne, economic development director for Cache County, said the county is excited for the project “because it helps give a nod to the agricultural importance of our region and our culture and history.”
The GOEO board approved a tax credit of up to $437,272 over five years. New total wages are projected to be more than $14.6 million over five years, and new state tax revenue is expected to reach nearly $2.2 million during that time. The new jobs are expected to pay an average of $74,112.
“The decision by Utah Flour Milling to expand its facilities in rural Utah is a testament to our state’s robust economic environment, skilled workforce, and commitment to innovation that makes it an ideal home for industries seeking growth,” Starks said. “We are proud to support Utah Flour Milling as it contributes to the economic tapestry of our rural communities.”
“It’s exciting to see Utah Flour Milling invest in Cache County as a supplier to Pepperidge Farms,” Cuthbertson said. “Pepperidge Farms has been a large employer in Richmond for many years — one example of a successful Utah operation attracting new, high-paying jobs to a rural community.”
Utah Flour Milling announced in July it would build the new flour mill and custom-mix facility in Richmond. NIPPN had announced in May it would enter the U.S. milling market with a $25 million investment in UFM but did not say at that time where the mill would be located.
Campbell Soup Co. announced in August it would invest approximately $160 million in its Richmond manufacturing facility to expand production of Goldfish to a capacity of over 5 million per hour.
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.