Blue Bunny’s Maker Eyes New York Expansion

Wells Enterprises’ Dunkirk expansion plan is anticipated to break ground in early 2024. Image courtesy of Wells Enterprises

Wells Enterprises is set to expand its manufacturing facility in Dunkirk, N.Y. The ice cream and frozen treat manufacturer is anticipated to more than double its current facility’s production output.

Located in Chautauqua County at 1 Ice Cream Drive, the project is in close proximity to Lake Erie as well as dining, retail and entertainment options in downtown Dunkirk. Interstate 90 and New York State Route 60 provide easy distribution access to the larger New York and Northeast areas.

New York State is offering up to $10 million in Excelsior Jobs Program tax credits to support the expansion, along with a $6 million grant from Empire State Development for capital investment commitments and the creation of local jobs. The Chautauqua County Industrial Development Agency is working with Wells Enterprises to officially set the project in motion.

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Upon completion, the new facility will expand Wells Enterprises’ national manufacturing network of its Blue Ribbon Classics, Bomb Pop, Halo Top and Blue Bunny products. The project is expected to bring more than 200 jobs to the community.

For cold storage and distribution, Wells Enterprises will continue to use the recently completed $41 million Americold facility situated in the Town of Dunkirk.

Construction on the new development is expected to begin in the fall of this year, with an official groundbreaking scheduled for early 2024. The facility is expected to become operational by late 2025.

Manufacturing continues to perform

In the food and beverage manufacturing industry, dairy product manufacturing ranked as the second-largest component after meat processing, accounting for 12.8 percent of the sector’s total sales in 2021, the U.S. Department of Agriculture reported. On a national level, the overall manufacturing industry is booming as construction spending increases for advanced production facilities, and companies that were previously conducting business abroad move operations back to the U.S.

As of the end of June, national in-place rents for industrial space averaged $7.33 per square foot, according to CommercialEdge. Among the largest East Coast markets, Boston and New Jersey saw the strongest year-over-year rent growth, at 10.3 percent and 8.8 percent, respectively.