By ANDREA MCCANN

Indiana Correspondent

GREENWOOD, Ind. — A California-based food processing company announced plans last week to open a plant in Greenwood early next year. California Custom Fruits and Flavors officials intend to break ground on June 1, according to Chief Financial Officer James Fragnoli, and to be fully operational in the first quarter of 2020.

Although the original idea was to purchase and revamp an existing building, Fragnoli said management found many advantages to building from the ground up in Indiana. He said the company was able to purchase a lot in Greenwood Park at 65 South big enough to double the operation’s size in the future.

“We make over 1,000 products,” Fragnoli said. “We’re an ingredient supplier for the dairy, bakery, beverage, and foodservice industries.”

The company, founded in 1986, develops and manufactures fruit fillings for bakery items, such as pies, breakfast bars, Danish, and toaster pastries; processed fruit bases for cultured dairy products, such as yogurt; processed fruits and flavors for frozen desserts, such as ice cream and frozen yogurt; flavorings for beverages, such as sodas, sports drinks, juice drinks, and teas; and foodservice products, such as coffee syrups, smoothie and shake bases, and bar mixes.

As its name suggests, California Custom Fruits and Flavors products are custom formulated to meet each client’s specifications.

The planned 65,000 square-foot state-of-the-art Greenwood facility will allow the company to expand its production capability and will place it closer to the bulk of its customers.

Fragnoli said the corporate and research and development offices will remain in Irwindale, Calif., while the Indiana operation will be strictly manufacturing and distribution. He expects about 50 percent of the company’s production to be in Indiana within a couple years.

“Four of our top five customers are located in proximity of Indiana,” he explained. “We wanted to build a plant in the Midwest … Of all the states we looked at, Indiana is the one where we don’t have a single customer.”

Although the Hoosier State and Greenwood initially weren’t on the company’s radar, he said Indiana kept popping up and “registering” in category after category. Their real estate agent showed management several sites along Interstate 65 northwest of Indianapolis, but nothing quite captured their interest until she showed them the Greenwood site, which Fragnoli said was a cornfield at the time.

“After much research, it became evident that Indiana was the best business and tax environment of any Midwest state within the region we were searching,” he said. “Additionally, Indiana has the most favorable workers’ compensation rates and most highways and byways of any state in the Midwest. Greenwood is the perfect location within the Indianapolis area to set up our new facility.”

He said the company will be involved in the community, joining the local and state chambers of commerce and participating in philanthropic projects. “That’s the way the owners work.”

California Custom Fruits and Flavors plans to invest more than $11 million to construct, equip, and furnish the manufacturing facility. The company currently employs nearly 100 employees at its West Coast headquarters and manufacturing facility, and plans to create up to 24 new full-time positions in Indiana by 2023.

Fragnoli said company officials are pleased with the workforce in the Greenwood area. They will be hiring for a manager, factory lead, sanitation worker, quality control associate, administrative associate, manufacturing associates, and material handlers. (Interested applicants may send resumes to hr@ccff.com)

“This is a great win for Greenwood and continues our city’s significant economic development momentum,” said Mayor Mark W. Myers. “Greenwood enjoys one of the most accessible locations in the country, with skilled labor and several shovel-ready sites available for development.

“California Custom Fruits and Flavors adds to the broad diversity of industries represented in Greenwood, and we’re pleased to welcome such a successful family-owned business to our community.”

Lt. Gov. Suzanne Crouch, also state secretary of Agriculture and Rural Development, expressed pleasure that the company is locating its Midwest operation in Indiana.

“We’re thrilled to welcome California Custom Fruits and Flavors to the Hoosier State. Our state’s business-friendly atmosphere and diverse agriculture industry, combined with a sophisticated transportation network, makes Indiana an excellent destination for their first Midwest operation,” she stated.

Crouch said it’s too early to know what inputs California Custom Fruits and Flavors will source from Indiana producers and businesses.

“The company has not yet determined how competitive ingredient suppliers are in Indiana versus the current suppliers. Their goal is to source as much as possible from Indiana. They have already purchased equipment from Indiana sources, which includes Kensar for their forklifts and pallet jacks.”

The Indiana Economic Development Corp. offered California Custom Fruits and Flavors, Inc. up to $160,000 in conditional tax credits based on the company’s job creation plans. These credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.

The city of Greenwood approved additional incentives at the request of the Johnson County Development Corp.