Alpina

Workers today are installing the first two silos at the new Alpina Products plant in the Genesee Valley Agri-Business Park, Batavia.

The first silo is 40 feet tall and will hold up to 20,000 gallons of raw milk. The second silo is half the height and will hold 12,000 gallons of whey.

More silos can be added as the capacity of the Greek yogurt plant increases.

More pictures after the jump (click on the headline to continue):

Sen. Kirsten Gillibrand spent some time in Western New York on Tuesday, including at least two stops in Batavia.

Gillibrand met with area Democratic leaders for lunch at Larry's Steakhouse and then toured the Alpina Products factory under construction at the Genesee Valley Agri-Business Park.

The facility, which will produce Greek yogurt and other dairy products, is nearing completion and should open in late August or September.

Gillibrand said seeing what is happening at the ag park -- which includes construction of a dairy production facility across the road from Alpina by PepsiCo and the Theo Muller Group -- is "really exciting."

"It's such an opportunity for agricultural growth in this region," Gillibrand said. "Not only is Greek yogurt production one of the fastest growing products in New York, but nationwide, and it's so well located with all of our dairies that are so close by. It makes business sense. Not only do we have a great workforce, but we have a great product, so it's going to be exciting to create these jobs, to have this industry grow in Western New York."

While there's been conflicting reports on whether New York dairies can produce enough milk to meet the demands of the new and existing Greek yogurt factories in the state, Gillibrand said she believes the dairies can meet the demand.

She said she has also introduced legislation to help New York's small dairies increase production without driving up their insurance costs.

Currently, if a small dairy wants to add a significant number of milk-producing cows, they're going to hit a cap on production imposed by insurance rules.

Gillibrand's legislation would remove the cap.

"That might give the ability of a small dairy to go up to 300 or 400 cows to meet the needs of their customers," Gillibrand said. "That would make a big difference for these projects."

Yogurt producers, Gillibrand said, don't want the expense of trucking in milk from other states to keep their production lines going and her legislation would keep the local milk flowing, she said, adding that there would be no regulatory burdens for small dairies to grow to meet local demand.

Steve Hyde, CEO of Genesee County Economic Development Center, also introduced Gillibrand to the STAMP project -- the 1,300 acre high-tech/nano-tech park that has been in planning for five years.

The senator took quite an interest in the project. She noted that with New York's previous success in Luther Forest -- the nano-tech corridor developing between Buffalo and Albany -- the surrounding technology-oriented university system, and the investment already made in the project, STAMP has a good chance to attract major manufacturers.

It was a validation of how the community and region came together on the ag park to have Gillibrand in Batavia on Tuesday to tour the Alpina facility.

"It’s really kind of heartwarming because this ag park was really nine-and-a-half years in the making," Hyde said. "Once we found a way to get it all done, get it funded, get it built, having two very significant manufacturing projects land in our back yard – like we talked about today, talk about the multiplier effect, Alpina’s working with OA-T-KA, and Stueben Food and a company in Rochester on packaging -- it’s just really really awesome."

Press release:

Artisan dairy manufacturer Alpina Foods has announced its yogurts will be available at Tops Friendly Markets, a leading grocery retailer in Upstate New York State and Northern Pennsylvania. The supermarket chain will carry Alpina Revive Greek Yogurt and Bon Yurt by Alpina at all Tops Friendly Market locations starting this month.

“We are excited to see our products on the shelves at Tops Friendly Markets,” said Alpina Foods General Manager Carlos Ramirez. “This relationship allows us to expand the availability of our yogurt as the demand for quality dairy products increases and the construction of our Batavia, New York dairy manufacturing plant nears completion.”

“Tops is proud to be the first grocery retailer in the area to carry Alpina Foods’ yogurts,” said Cathy Shifflett, Tops VP Center Store Sales and Marketing. “At Tops Friendly Markets, we’re committed to partnering with local brands such as Alpina Foods to bring quality products into communities throughout New York and Pennsylvania.”

Alpina Revive is an authentically strained, all-natural and non-fat Greek yogurt that packs an impressive 15 grams of protein in every cup. It contains simple ingredients such as milk and active yogurt cultures, is low in sugar and carbohydrates, and contains no artificial ingredients, sweeteners or flavors. Alpina Revive is paired with one-of-a-kind, chef-crafted granolas in four blends: antioxidant, superfoods, tropical, and Chai spices. 

Designed for the kid in all of us, Bon Yurt by Alpina is a creamy, traditional-style yogurt rich in protein and calcium but with a bit of fun in the mix. Paired with timeless cereal favorites like frosted flakes, cocoa rice, fruit rings and cookie bits, makes Bon Yurt by Alpina sure to please both parents and kids.

Top executives from Alpina Products were in Batavia on Monday touring the site of their future Greek yogurt plant in the Genesee Agri-Business Park, and they heard from Jim Billington, project manager, that construction is right on schedule.

A mild winter has certainly helped, Billington said.

"We've been pouring concrete every day, and according to some of the locals, that's quite unusual," Billington said. "We've been trying to take advantage of that."

CEO Julian Jaramillo (top photo, left) was all smiles during the tour and nodded enthusiastically when Managing Director Carlos Ramirez (top photo, right) said they consider it a good sign that Project Wave is under construction (The Batavian has previously reported Project Wave appears to be the work of PepsiCo).

"It says we made a good decision in coming here," Ramirez said.

He added that with the milk supply, the transportation, the labor pool and now the chance to be in a location with a complimentary business will only benefit Alpina and could lead other yogurt makers to come to the same conclusion.

"I think developing a yogurt cluster is a really good idea – the Silicon Valley of yogurt," Ramirez said.

With Jaramillo and Ramierz was Alpina' Colombia General Manager Ivan Lopez, who was seeing the location for the first time.

"It’s going to be great," Lopez said. "We have a huge operation in Colombia and when I see this, we can see the future in United States. I think we can do good things here, just like in Colombia."

The 40,000-square-foot plant should open in early spring and initially employ 50 people, with the first shipment of product going out in June.

Ramirez said Alpina remains excited about the opportunity to sell Greek yogurt in the United States.

"It’s one of the few categories where America is an emerging marketing," Ramirez said. "It's grown like crazy over the past three or four years and we think there is still room to grow."

For previous Alpina coverage, click here.

The possible "yogurt cluster" in Batavia is part of a statewide trend in the manufacture and distribution of Greek yogurt, according to a story just published by the The New York Times.

Alpina Foods, the United States arm of a major South American dairy company, is building a $20 million plant in Batavia to make Greek yogurt topped with granola. And state economic development officials are negotiating with another major food maker to set up a dairy products plant in the same area, creating the possibility for what one executive called a “yogurt cluster.”

Of course, readers of The Batavian (and no other local source in this case) know the "major food maker" is PepsiCo.

However, I spoke to some dairy product insiders recently who don't believe yogurt is what PepsiCo is planning. They said they expect Pepsi to announce a dairy-based nutrition drink.

More from the Times:

National retail sales of the thicker style of yogurt more than doubled last year, jumping to $821 million for a 52-week period ending in October ...

New York’s dairy farmers are among the biggest beneficiaries of the public’s love affair with Greek yogurt, since it typically takes three times as much milk to make a pound of Greek yogurt as it does for regular yogurt. “This is a ‘once every two or three generations’ situation,” said Bruce Krupke, executive vice president of the Northeast Dairy Foods Association. “All of the right forces have come together to make it very attractive to build in New York state.”

Data compiled by the New York State Department of Agriculture and Markets shows that the state produced 368 million pounds of yogurt in 2010, nearly 40 percent more than the previous year. Over five years, production rose almost 60 percent. Much of that increase is for Greek yogurt production. ...

The Greek yogurt boom has translated into jobs in rural areas of New York that badly need them. Chobani (a brand of Greek yogurt) said it currently employed about 900 people in New York and expected to add about 100 more. Fage said it had about 240 full-time employees and expected to add about 150. The new Alpina plant in Batavia will employ about 50 people.

We're still in a wait-and-see mode about Pepsi and how the rest of the ag park will fill out, but this was some interesting information from the NYT.

Read the whole article here.

By this time next year, there will be a factory in Batavia turning out 4,000 tons of yogurt on an annual basis, employing 55 people and buying milk from local dairy farmers.

The first step toward that goal was taken today with a ceremonial groundbreaking by South America-based Alpina Products at the site of its planned 40,000-square-foot facility.

“Alpina’s decision to locate in Batavia is a success for the entire region,” said Town of Batavia Supervisor Greg Post.

Alpina started marketing yogurt products aimed at U.S. consumers in the Northeast several years ago. The Batavia plant will be its first U.S.-based manufacturing facility.

Managing Director Carlos Ramirez Zavarce said Alpina was built on European tradition and now embraces American pride in expansion in New York.

Batavia, he said, was part of a list of 50 potential sites for the plant when Alpina first started planning for growth, but quickly moved to the head of the class.

Besides a strong dairy tradition and an abundant supply of milk, as well as trained workers and easy access to a market area of 125 million potential consumers, local leaders demonstrated, he said, that they would be as committed to Alpina's success as the company's executives.

"We understood that you got the message that if we were successful, you would be successful," Ramirez said. "That was very important for us. We have no doubt we're going to have success here. This is the right location, the right place."

After the groundbreaking, attendees were invited to sample Alpina's yogurt products and there was a strong sense of excitement about this initial factory opening in the long-anticipated agri-business park.

“Today’s groundbreaking of Alpina Foods’ first manufacturing facility in the United States is proof that Batavia is a great place to do business,” said Sen. Michael Ranzenhofer. “Alpina’s $15 million investment and its decision to create 50 jobs sends a clear message that other private-sector companies should consider Genesee County for their next investment.”

GCEDC CEO Steve Hyde has said previously that there are other prospects for the business park in the pipeline, but until deals are signed, he is unable to provide public details.

VIDEO: Promotional video from Alpina.

Alpina CEO Julian Jaramillo

Alpina Managing Director Carlos Ramirez Zavarce

Roger Parkhurst, who will be director of operations at the new plant

Sen. Mike Ranzenhoffer and Assemblyman Steve Hawley

GCEDC CEO Steve Hyde

It's not often that the CEO of a multinational corporation drops in on a Town of Batavia Planning Board meeting, but Alpina Product's Julian Jaramillo just happened to be in town today.

Jaramillo (above, left), lives in Colombia, but as he guides his company toward its first expansion into the United States, he needs to visit the area where he hopes to soon employ more than 50 people.

He said he is very excited about the opportunity for Alpina in Western New York.

"We've gotten great support," Jaramillo said. "This is a huge opportunity. It is our future and success in this country is important to the growth of our company."

Based in Bogata, Alpina is a food processing company that specializes in dairy products.

Early reports about Alpina's expansion focused on the opportunity for the company to market its products to the growing Hispanic population in the Northeast. But Jaramillo shook his head and said no when asked if that was the marketing plan for the company's new yogurt product.

Managing Director Carlos Ramirez Zavarce (above, right) jumped in and said the company's goals go far beyond a niche market.

"To be honest, we can leverage our brand to create cash flow by selling to Hispanics, but when we did our research three years ago, we found we could have the confidence to go mainstream," Ramirez said. "Instead of fighting for small pieces of the pie by creating a niche market, we're going after a mainstream market."

The company is planning to go big in the U.S., Ramirez explained through what he called an "insurgent" strategy.

Currently, two companies, Yoplait and Dannon, control 80 percent of the yogurt market. To compete, Alpina must offer a product that is different enough from the established brands to find new customers.

To that end, Alpina hired a New York-based chef with an expertise in health and wellness recipes to come up with new yogurt products for Alpina.

It is those new products that will be made and distributed from the Batavia plant.

"They're (Yoplait and Dannon) are great, they’re big and they're awesome, but it's (all the) same stuff, same models," Ramirez said. "If you look at a company like Chobani Greek Yogurt, they started three or five years ago and they do things differently. That’s what I mean by insurgent. Insurgent is just a way of thinking. Do things differently, not just from a marketing perspective, but from the products you launch."

If the strategy is successful, Alpina sees expanding beyond just New York, Toronto and the Tri-State market, and going into the South and then nationwide.

The expansion would mean adding additional refrigerated storage to the Batavia plant.

The plant as initially constructed is expected to be 40,000 sq. ft., expandable to 120,000 sq. ft.  

The site plan was presented to the Town of Batavia Planning Board on Tuesday evening and the plan was approved by a vote of 6-0.

Alpina hopes to complete its purchase of the 10-acre parcel in the Genesee Valley Agri-Business Park by Aug. 15 and break ground immediately.

The goal is to get the structure built before winter sets in and then take care of interior construction during the cold months. If all goes according to plan, the company can start gearing up for production in May with the first product shipments in June.

Ramirez said Alpina picked Batavia (over the other finalist, Scranton) because: there is easy access to both raw product and shipment of finished product; there is a local labor pool with expertise in dairy products; the great people the company worked with at GCEDC; generous tax abatements; the close proximity to Cornell University and RIT; the two million people between Rochester and Buffalo as well as being centrally located to the markets Alpina wants to target first.

There is a great market to pursue here, Ramirez told the board.

"You see companies trying to go national at some point, but there is a narrow market we can pursue here and just concentrate on here for a few years and become profitable."

For our previous coverage of Alpina, click here.

UPDATE: WBTA's Geoff Redick produced a video about Tuesday's meeting.

A South American-based dairy processing company will get $767,096 in tax incentives to help the company establish a new yogurt factory in Batavia, the Genesee County Economic Development Center announced.

The incentive package for Alpina Products includes a property tax abatement, a sales tax exemption and a reduction of mortgage taxes.

GCEDC announced in April that Alpina agreed to become the first tenant for the Genesee Valley Agri-Business Park off Route 5 in Batavia.

The plant, when completed, is expected to add 50 jobs to the local economy and if successful, Alpina officials said they would expect to expand their operations in Batavia.

More than half of the tax incentive package comes in the form of a PILOT (payment in lieu of taxes) arrangement that will reduce the amount of anticipated property taxes paid by Alpina by more than $458,000 over 10 years.

Alpina will pay property taxes on the current assessed value of its 10-acre facility, but because building the plant will increase the land's value, Alpina will get a break on that increased assessment for 10 years. During the first five years, Alpina will pay no taxes on the difference between the current assessed value and the new assessed value. Starting in year six through year 10, Alpina will pay 50 percent of the increase in additional taxes, and pay 100 percent from that point forward.

The sales tax exemption of $260,000 will be on construction materials and office equipment, but not manufacturing equipment.

The mortgage tax exemption is $48,750.

The anticipated economic benefit to Genesee County is expected to exceed $30 million over 10 years.

Alpina will invest $15 million to purchase the 10-acre parcel and construct the plant.

In other GCEDC news, Wellsville Carpet Town at 3990 Call Parkway, Batavia, will receive a $14,375 mortgage tax exemption to help the company refinance its current $1.5 million real estate loan. GCEDC says the abatement will help retain 45 jobs in the county.

There are four to five more companies that are in either early stage or mid-stage study of the Gensee Valley Agri-Business Park, and Columbia-based Alpina Products decision to set up shop in Batavia is going to help the cause, said Steve Hyde, CEO of the Genesee County Economic Development Center.

"Any time you get your frist tenant in one of these shovel ready sites, it really helps create momentum, much like the rising tide lifts all sail boats," said Hyde. "So, this is something we're most excited about."

The financial details are not available for public release yet because Alpina is still completing paperwork and then the application for tax abatements and grants most be approved the by GCEDC board.  The package is expected to be presented at the board's May meeting.

The deal is contingent on approval of a set of incentives as well as some 900-feet of new roadway being completed to the 10-acre lot Alpina intends to buy.

The purchase price is $50,000 per acre, Hyde said.

"That's the sweet spot," said Hyde. "You spend that much between buying the land and putting in the infrastructure. It really is a cost recovery model."

In a meeting with the Ways and Means Committee on Wednesday, Hyde mentioned that a mid-level Department of Transportation staff member was holding up a grant for a rail line into the agri-business park, and Hyde said he is hopeful this announcement will help unfreeze those funds.

Some of the businesses might want to locate in the park need rail and won't consider the park "shovel ready" without a rail line in place.

Even though Alpina won't need rail in its early years in the park, Hyde is hopeful Aplina's signing will shift the conversation about the grant.

"Hopefully, it will enable a different conversation," Hyde said. "I'm hopeful it will show this site is real."

Hyde said the GCEDC had four meetings with either staff of Alpina or the company's site selection consultant and the final meeting occurred with the company's entire board of directors, who all flew from Columbia to Batavia to visit the area and hear why this was the right site for them.

The full court press included a meeting attended not just by GCEDC staff, but staff from Buffalo-Niagara Enterprise, Greater Rochester Enterprise, Cornell, RIT and Town of Batavia. Lt. Gov. Bob Duffy was on a speaker phone for key parts of the presentation and really tried to sell the executives on what a great area Western New York is, Hyde said.

GCEDC officials then gave the executives a tour of the county, showing off its amenities and areas of growth and revitalization, and then showed off some of the amenities of the region.  The tour concluded with a dinner at the Wine and Culinary Institute in Canandaigua.

Chefs there made a cheese cake in front of the dignitaries using an Alpina product for the topping.

But in the end, Hyde said, it's all really about the jobs.

"We're delighted that this came through because more than anything, it's going to create 50 jobs for 50 families," Hyde said. "And you know what, in this time, in this economy, every job our business community creates helps."

GCEDC has landed its first business for the Genesee Valley Agri-Business Park in Batavia. It is a Bogata, Colombia-based dairy product company that will use the plant to expand its yogurt business into the United States.

According to South American news reports, Alpina Productos Alimenticios will invest $15 million in the project and will initially hire 50 people at the plant.

Established by two Swiss entrepreneurs in 1945, Alpina runs nine industrial facilities across Colombia, Venezuela and Ecuador, and has commercial presence in more than 12 countries. 

The product line, which generates about $740 million in annual revenue, includes beverages, milk, baby food, desserts, cheeses, cream and butter, and fitness food products.

"The Alpina brand is a symbol of pride not only to Colombians but to the entire Andean region," Alpina President and CEO Julian Jaramillo (pictured) told La Republica. "We hope to build a new frontier for growth in the U.S. market, based on the properties of innovation, quality, nutrition and sustainability associated with our products and our presence in places where we already operate."

But it's not a 100-percent done deal, according to Genesee County Economic Development Center CEO Steve Hyde.  

The company intends to purchase a 10-acre parcel with a phase I construction plan for a 28,000-square-foot yogurt manufacturing facility.

The company picked one of the newest parcels in the park, so there is still a little bit of work to be done to get it completely shovel ready, including extending one of the roadways.

The purchase is contingent on that work being completed on schedule, and if it is, Hyde said, construction on the plant should begin in August.

The 10-acre parcel will give the company room for expansion.

"They've got a real footprint for future growth," Hyde said.

According to the La Republica article, Alpina has achieved growth rates in Venezuela and Ecuador of 15 and 20 percent and his hoping for the same level of success in the U.S.

Jaramillo believes per capita consumption of yogurt in the U.S. is low, which he sees as an opportunity to capture new consumers.

Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeastern part of the U.S. has a fast-growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania.

Batavia having a nearly shovel ready park combined with the region's high number of quality dairy farms were attractive to Alpina.

"It kind of proves the thesis that you've got to have that shovel ready site that clusters industries or companies won't even come," Hyde said. "They won't take the risk. They've got to be able to build and go."

The project is part of a $50 million plan by Alpina to expand its business.

“We’ve been waiting for exactly the right moment to make a major push into the U.S. market, and today we found the right location to achieve our strategic goals,” said Alpina Foods, LLC, Managing Director Carlos Ramirez Zavarce.  

Below is a video the company produced for YouTube that has received more than 500,000 views.