Spurred by the promise of a tax abatement package, Pepsico will invest more than $30 million into doubling its Gatorade operation in the Crestwood Industrial Park.
The food-and-beverage giant plans to build a 500,000-square-foot distribution center across the street from its Oakhill Road manufacturing plant and hire about 100 more workers, said Township Supervisor Dan Frascella.
The sports-drink manufacturer expects to cut down on fuel costs by storing its inventory and preparing its shipments near its existing 425,000-square-foot factory.
“This is a win-win situation for Luzerne County and the Crestwood Industrial Park,” said Frascella, one of four local officials who voted Monday night to grant a 10-year tax break through the Local Economic Revitalization Tax Act.
The Crestwood School District is expected to address the tax break at its meeting Aug. 17. The Luzerne County commissioners also will vote on the issue.
The facility will be built within a Keystone Opportunity Zone which makes it fully tax-exempt for 3 1⁄2 more years. The other tax break would kick in after the KOZ status ends.
Construction on the project could start this month or in early August, Frascella said. “I believe everything is in place, they just have to sign the lease agreement.”
Because the paperwork hasn't been signed, officials at the Greater Wilkes-Barre Chamber of Business and Industry were reluctant to discuss the project.
“Our policy is not to comment on active prospects,” said the chamber's Larry Newman. “But, in this case, what's also important would be to retain quality existing jobs.”
Representatives on the state, county and local levels worked with chamber officials to make the deal a reality, Frascella said.
The Mountain Top plant has been making and bottling Gatorade since the 1980s. It employs 240 people at what Frascella described as “good-paying” jobs.
The Quaker Oats Co. acquired Gatorade in 1983. In 2001, Pepsico, maker of Pepsi-Cola and other foods and beverages, merged with Quaker.
Pepsico, which employs 157,000 people, posted revenues of $32 billion in 2005. The company stock closed at $61.59 Tuesday, up 64 cents, on the New York Stock Exchange.
