Gov. Beshear: Niagara Bottling Locating New $129.8 Million Manufacturing Facility in Kenton County, Creating 60 Jobs

Company headquartered in California to open Kentucky operations

FRANKFORT, Ky. (Sept. 16, 2024) - Today, Gov. Andy Beshear highlighted new growth in Kentucky's booming manufacturing sector as Niagara Bottling, a manufacturer of bottled water and soft drinks, announced plans to locate a new $129.8 million production facility in Kenton County and create 60 new full-time jobs in the area.

"We could not have the tremendous economic success we've had during this administration without our expansive manufacturing network," said Gov. Beshear. "Niagara Bottling is a new and welcome addition to our manufacturing sector, and the company's commitment to growth will further strengthen Kentucky's economy for years to come. I want to thank Niagara's leadership and look forward to seeing their success here in the commonwealth."

Niagara Bottling will begin construction of its Elsmere facility in early 2025 at the C5 Airport East Logistics Center. The 52-acre site was developed by CORE5 Industrial Partners and supported by state and local officials. The new facility will include 436,800 square feet of advanced manufacturing space, including beverage production and distribution operations. The facility's managerial team is anticipated to be in place by Q3 of 2025, followed by employee hiring activities in early 2026.

In 2022, the General Assembly and Gov. Beshear approved a $13 million site development and acquisition fund in Kenton County, $669,000 of which recently supported the project with the installation of power transmission lines.

"We are very excited to establish our newest manufacturing facility in Kenton County in the city of Elsmere, Kentucky," said Brian Hess, executive vice president at Niagara Bottling. "Niagara Bottling is committed to supporting our local communities, providing our team members with opportunities for career advancement and utilizing sustainable business practices. We are a leader in the areas of manufacturing, innovation, supply chain and logistics. Having established strong business and community relationships throughout our numerous plant locations, we look forward to making a positive, lasting impact in Northern Kentucky."

Niagara Bottling, headquartered in Diamond Bar, California, is a family-owned and operated company that was founded in 1963, when Andrew Peykoff Sr. started bottling high-quality, low-cost water in five-gallon glass containers for home and office delivery. Niagara has since grown into a leading beverage manufacturer that works closely with some of the largest beverage brands, retailers, grocers, club and convenience stores throughout the country. The company produces a variety of beverages, including bottled water, sparkling, vitamin and flavored water, sports drinks, ready-to-drink tea and coffee and protein drinks.

Sen. Christian McDaniel, who represents part of Kenton County, shared his enthusiasm for Niagara Bottling's location: "I am proud of the efforts we are making and the results that we are seeing in Kenton County. Niagara Bottling's location here promises to continue to build on the momentum that we are experiencing, and we are proud to welcome them."

Kenton County Judge/Executive Kris Knochelmann said he was proud to support this project: "Niagara Bottling has many of the attributes we look for when recruiting companies to Kenton County, from creating well-paying jobs for our residents to making an investment that plants real roots in our community. I'm glad Kenton County could use its site development dollars to help make this project a reality."

Elsmere Mayor Marty Lenhof thanked Niagara Bottling leaders for locating their newest facility in the city: "We appreciate Niagara Bottling choosing Elsmere for this significant investment and creating high-quality career opportunities in our city. We're proud to support the project and appreciate the development opportunities that Core5 Industrial Partners has brought to our community."

BE NKY Growth Partnership CEO Lee Crume welcomed Niagara Bottling to Northern Kentucky: "The Cincinnati region has a strong legacy in the food and beverage manufacturing industry. We are excited to have Niagara Bottling join our high-growth sector. Our geographic location is an asset to consumer product goods companies who can reach more than 50 percent of the U.S. population within a day's drive."

Niagara Bottling's investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling $32 billion in announced investments, creating nearly 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth's history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On's transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC's $2 billion, 2,000-job gigafactory project in Warren County; Toyota's $1.3 billion investment in Scott County; and INFAC North America's $53 million investment in Taylor County, among others.

The Governor's administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody's Investors Service upgraded Kentucky's credit outlook from stable to positive.

In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor's Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a "Supply Kentucky" initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in June preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.1 million in tax incentives based on the company's investment of $129.8 million and annual targets of:

• Creation and maintenance of 60 Kentucky-resident, full-time jobs across 10 years; and
• Paying an average hourly wage of $45.17, including benefits, across those jobs.

Additionally, KEDFA approved Niagara Bottling for up to $200,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Niagara Bottling can receive resources from Kentucky's workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on Niagara Bottling visit NiagaraWater.com.

Media inquiries should be directed to [email protected].

A detailed community profile for Kenton County can be viewed here.

Information on Kentucky's economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

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