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Ice Cream Giant Wells Enterprises Plans $425M New York Expansion

by Alice

Wells Enterprises, a leading ice cream manufacturer, has announced a substantial $425 million investment to expand its manufacturing facility in Dunkirk, N.Y. This significant development will nearly double the plant’s size and quadruple its production capacity, making it one of the largest single private investments in Chautauqua County’s history.

The expansion will bring substantial economic benefits to the area, adding 270 new jobs and retaining 380 full-time positions. Wells Enterprises, headquartered in Le Mars, Iowa, is known for producing more than 200 million gallons of ice cream annually and distributing its products across all 50 states. The company employs over 4,000 people nationwide and operates multiple manufacturing plants for brands including Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics.

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The Dunkirk facility, located at 1 Ice Cream Drive, will expand to 350,000 square feet, incorporating new production lines and a chocolate ingredient manufacturing facility. This expansion will not only allow Wells to create new product offerings but also enhance its market presence. Production on the new lines is slated to begin next August.

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The facility’s strategic location near Interstate 90 and Lake Erie will significantly enhance Wells’ distribution capabilities across the Northeast and beyond, benefiting from excellent logistics access.

“We couldn’t be more excited about the future of Wells and the role this expansion in Dunkirk will play in our ambition to be the U.S. ice cream category leader,” said Wells CEO and President Liam Killeen. “We are extremely grateful to the State of New York, Chautauqua County, and the community of Dunkirk for their unwavering support of our growth. Most importantly, this is a testament to the leadership and commitment of every one of our team members in Dunkirk. Their passion, drive, and excellence in operations are truly what makes this possible.”

New York Governor Kathy Hochul lauded the investment as “an important win” that will transform “a struggling plant into a high-tech facility that will benefit New York workers, local business partners, and the region’s hardworking dairy farmers.” State Agriculture Commissioner Richard Ball echoed this sentiment, emphasizing that the expansion “will not only help to solidify Wells’ future in Western New York but will also ensure New York State remains a leader in the dairy industry for years to come.”

The expansion is set to benefit Northeast dairy farmers significantly, as the plant will continue to require millions of pounds of dairy products annually. New York, home to nearly 3,000 dairy farms, ranks as the country’s fifth-largest dairy state and fourth in national ice cream manufacturing. This development will also create new opportunities for trucking companies, with increased demand for both asset-based carriers and brokers to haul ingredients and finished ice cream products.

“With the increase in volume into the Western New York region by Wells Enterprises, there is a large opportunity and need for both asset-based carriers and brokers to haul our loads for both ingredients and ice cream,” said Lesley Bartholomew, Wells’ director of external communications. The expansion could attract carriers to establish operations in the Dunkirk area or encourage larger carriers to set up satellite locations.

New York state is supporting the expansion with up to $12 million in jobs program tax credits and a $6 million economic development grant in exchange for job creation and capital investments. The county’s industrial development agency is collaborating with Wells’ managers to help expedite the project.

During construction, Wells will continue production in the existing facility. The plant will also maintain its use of Americold’s 181,000-square-foot cold storage facility in Dunkirk, which opened in 2022 with 25,000 pallet positions at minus-20 degrees Fahrenheit.

In 2022, the Ferrero Group acquired Wells Enterprises, making it an independent operating company under Ferrero. Founded in 1913 by Fred H. Wells, the company had been family-run for generations before the acquisition.

This expansion marks a significant milestone for Wells Enterprises, enhancing its production capabilities and solidifying its position as a leader in the U.S. ice cream industry.

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