The city of Jefferson was one of 64 Midwestern locations considered by Tokyo-based soy sauce maker
Kikkoman Corp. to be the site of the company’s next manufacturing facility.
Last week,
WEDC announced it
authorized up to $15.5 million in tax credits for Kikkoman to build a new, $560 million Jefferson plant and to expand its brewing operations in Walworth.
That announcement was over five years in the making, said
Osamu Mogi, representative director, senior executive corporate officer with Kikkoman Corp.
There were several factors that spurred Kikkoman’s need for a new facility, including growing demand and a desire to provide a diversified portfolio of products for consumers.
“During the COVID-19 pandemic, we modified our growth projection,” said Mogi. “Now, our sales growth is one to two years ahead of what we used to project.”
Aside from its flagship soy sauce, Kikkoman has branched into soy-based condiments like teriyaki sauce and ponzu. To meet the increasing demand for its growing portfolio of products, leadership at Kikkoman decided to build a highly flexible manufacturing facility geared toward smaller batch sizes.
The addition of another Wisconsin manufacturing facility allows Kikkoman to reduce the risk of having products made in one plant. If one plant were to shut down, the company would still be able to make its products.
“Ever since we started our business in the United States in 1957, we have been promoting our soy sauce as all-purpose seasoning that could be used not only on Japanese or Asian dishes, but also many other cuisines,” said Mogi. “I think our strategy was the right decision.”
In the early stages of searching for a new location, Kikkoman also considered major East Coast cities. An additional study showed company leadership it made the most sense to build a new facility near the Walworth plant.
Through a consultant, the company considered 64 locations in the Midwest, with about half of them being in Wisconsin. Logistics, the surrounding environment and access to a workforce with knowledge of food manufacturing were the main criteria the company considered when looking at each location.
"Because the (Jefferson County) Food and Beverage Innovation Campus is dedicated to manufacturing and food research companies, we don't need to worry about pollution or contamination from harmful chemicals," said Mogi. Kikkoman will be the anchor tenant in Jefferson County's forthcoming 175-acre
FaB Campus. The land is bordered by Highway 26 on the west and a Union Pacific railroad to the east, going as far north as Collins Road.
The Jefferson plant will be “a new concept” for Kikkoman as the company aims to mesh a traditional soy sauce plant with flexible production capabilities to produce smaller batches and a wider variety of products.
The Jefferson site is also close to Kikkoman’s USA R&D Laboratory, which is just 36 miles away in Madison. Mogi anticipates the Madison research lab and the Jefferson plant will be in “close communication” to bring innovative product ideas to the production line.
When it comes to improvements planned at the Walworth facility, Mogi said Kikkoman isn’t eyeing a physical building expansion at this time. Instead, the company hopes to introduce energy efficient equipment at the facility to boost productivity.
“Of course we could expand our factory in Walworth,” he said. “One of the main reasons we’re building an entirely new plant in Jefferson is to reduce and control the risk of concentrated manufacturing capacity in one location.”
Groundbreaking for the first phase of the Jefferson expansion is expected to take place this June. That first phase will include construction of a 240,000-square-foot facility that will produce soy sauce and soy sauce–related seasonings. The first shipments of soy sauce are planned for fall 2026.
Kikkoman's plans for a new facility in Jefferson and improvements at its Walworth facility are expected to create 83 jobs over 12 years and cost a total of $800 million.
