LE MARS, Iowa | Wells Enterprises is moving forward with a $20 million expansion that will position the Le Mars-based family business for additional growth in the ice cream sector.
Wells, maker of the Blue Bunny brand, is building a 14,000-square-foot addition to its South Ice Cream Plant. Completion is anticipated in August, said Tony Chihak, the company's director of engineering.
The big capital investment includes construction of a cold storage addition that will house additional hardening equipment. The new equipment will support a new multi-product production line being added to an existing portion of the plant, located on the south end of Le Mars.
"The expansion allows Wells to continue to grow in the ice cream category," Chihak said.
The scope of the project has grown since it was announced last fall. Initially, the company anticipated a 12,000-square-foot addition at a cost of about $19.3 million.
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As members of the engineering team reviewed plans, they realized that more space was needed for the equipment being installed, Chihak said.
The project is in response to increased sales of Blue Bunny ice cream and frozen novelties and a relaunch of the brand in February. The company unveiled a new mascot, named Blu, as well as a new logo and premium see-through container.
In July, the Iowa Economic Development Authority Board awarded $644,400 in tax incentives to help finance the Wells expansion, which is expected to create 19 new jobs.
As a local match for the state funds, the city of Le Mars will abate property taxes on the new construction on a sliding scale for five years, with an estimated benefit to the company of $91,980.
Wells is the dominant employer in Le Mars, with more than 2,000 employees at its headquarters, two ice cream plants and a large freezer. The employment is the equivalent of one of every four residents in the Plymouth County seat of about 10,000 people.
The south plant, which boasts 1 million square feet of space and 37 production lines, produces packaged ice cream, frozen novelties and frozen dessert cakes.
The north plant, located downtown, covers 153,292 square feet, with the 13 production lines producing packaged ice cream and frozen novelties.
Combined, the plants produce 150 millions of gallons of ice cream per year, giving rise to the city's claim as the "Ice Cream Capital of the World."
The latest expansion comes as the Northwest Iowa company continues its quest to become the undisputed king in the U.S. ice cream industry by 2020.
The Northwest Iowa company is a solid No. 3, with more than $1 billion in revenues per year.
