• Industry Overview
    • Danone North America

    Danone North America, Rockingham County

    Food & Beverage Processing in Virginia

    More than 200 food and beverage processing companies have chosen to locate or expand in Virginia over the last decade, creating over 7,900 new jobs and making capital investments totaling $3.4 billion. Industry leaders were attracted to Virginia's unique combination of advantages and resources for this booming sector. 

    Virginia’s food and beverage processing industry employs more than 42,000 people, accounts for over 17% of Virginia’s total manufacturing employment, and is the Commonwealth’s second-largest manufacturing sector. It is also one of the Commonwealth’s fastest growing industries. Employment in this sector has grown by 15% over the past five years, the second-highest rate in the Southeast.

    A Large and Diverse Food and Beverage Processing Ecosystem

    With the second-largest food and beverage processing sector in the Southeast, the Commonwealth offers a diverse ecosystem of partners and suppliers for food and beverage processors, including dozens of packagers and bottlers, 160+ warehousing and distribution establishments (including expansive cold storage options), and 43,000 farms. 

    50+

    Major packaging and bottling establishments in the Commonwealth 

    1.7M+ sq. ft.

    Of cold storage (existing or planned) within a 20-mile radius of The Port of Virginia’s terminals in Norfolk Harbor

    160+

    Major warehousing and distribution establishments across the Commonwealth that can accommodate any type of product 

    What Virginia Brings to the Table

    2023 F&B Logo Map 150 wide
    Market Access Map

    An Optimal Location to Serve East Coast Markets

    Located at the center of the U.S. East Coast and within a one-day drive of 47% of the U.S. population, Virginia offers an ideal location to serve East Coast customers or to provide a single gateway to the U.S. market. 

    $370B+

    Food and beverage store sales within a one-day drive of Virginia 

    2nd-Largest

    Food and beverage processing sector in the Southeast

    119,000+

    Food and beverage stores within a one-day drive of Virginia

    Advanced Logistics Infrastructure to Enable Global Connectivity

    Virginia’s extensive network of well-maintained roads, railways, ports, and airports offer efficient logistics and global connectivity. 

    2nd Densest Roadway and Railway Networks

    in the Southeast

    3,000 mi. of Railways

    (anchored by Class I railroads CSX and Norfolk Southern) 

    16 Commercial Airports Serve Virginia

    with flights to 100+ domestic and 50+ international destinations

    The Nation’s Food Flows through The Port of Virginia

    Virginia provides food and beverage manufacturers easy and efficient access to international markets and supply chains through world-class facilities at The Port of Virginia. 

    The port’s completion of USDA’s Southeast In-Transit Cold Treatment Program, allowing Virginia to accept a broad range of imported perishable cargo, and the Intercontinental Exchange (ICE) designation that allows exchange-graded coffee to arrive through the port, are both part of The Port of Virginia’s focus on supporting Virginia’s Food and Beverage industry. 

    Virginia International Gateway, Portsmouth

    The Nation’s Food Flows through The Port of Virginia

    Virginia provides food and beverage manufacturers easy and efficient access to international markets and supply chains through world-class facilities at The Port of Virginia. 

    The port’s completion of USDA’s Southeast In-Transit Cold Treatment Program, allowing Virginia to accept a broad range of imported perishable cargo, and the Intercontinental Exchange (ICE) designation that allows exchange-graded coffee to arrive through the port, are both part of The Port of Virginia’s focus on supporting Virginia’s Food and Beverage industry. 

    Hampton Roads Harbor

    The Nation’s Food Flows through The Port of Virginia

    Virginia provides food and beverage manufacturers easy and efficient access to international markets and supply chains through world-class facilities at The Port of Virginia. 

    The port’s completion of USDA’s Southeast In-Transit Cold Treatment Program, allowing Virginia to accept a broad range of imported perishable cargo, and the Intercontinental Exchange (ICE) designation that allows exchange-graded coffee to arrive through the port, are both part of The Port of Virginia’s focus on supporting Virginia’s Food and Beverage industry. 

    Virginia International Gateway, Portsmouth
    Carvins Cove

    Carvins Cove Reservoir

    Water Availability

    According to the Virginia Water Resources Plan published by the Department of Environmental Quality, Virginia is considered to be a “water-rich” state. During years with normal to high precipitation, Virginia’s net water withdrawal from surface water in non-tidal streams is less than 5% of the median daily streamflow.

    For companies with processes that require access to water, regions within Virginia with a notable abundance of water resources include:

    • Lynchburg region: more than 25 million gallons per day excess water capacity.
    • New River Valley region: average daily flow of 1.7-billion gallons and of very reliable, clean water from the New River. Adequate infrastructure is also in place to tap into this natural resource and to process waste water.
    • Roanoke region: current demand is only 43% of available daily supply.

    A conversation with Jason Reiman

    Chief Supply Chain Officer
    Jason Reiman Testimonial

    Higher Education Resources Support the Food and Beverage Industry in Virginia

    Virginia is home to numerous universities and research centers working on cutting-edge innovations that are advancing the food and beverage manufacturing industry. These institutions have a strong track record of closely cooperating with industry partners.

    Virginia Tech - Department of Food Science & Technology

    Named the No.2 College for Food Science and Nutrition in the U.S. by Niche, the department’s focus areas include food microbiology and safety, food processing and packaging, food chemistry, sensory analysis, food quality, and fermented foods and beverages.

    Facilities and research areas include the Food Innovations Program, pilot plants, laboratories, support facilities, and a sensory/flavor testing suite. As a resource for food companies that are start-ups or evaluating new equipment, processes, and product lines, the pilot plants feature flexible, high-bay equipment areas for use in the development of scale-up operations and process/packaging engineering systems.

    Virginia State University (VSU) College of Agriculture

    VSU’s College of Agriculture has a number of resources that are useful to the industry. The Food Processing and Engineering Lab focuses on topics related to engineering for food nutrition, quality, and safety, and the application of nanotechnology in foods.

    The Food Safety and Microbiology Laboratory focuses on improving the safety and quality of our country’s food supply through research that examines microbial ecology and routes of contamination.

    The Agricultural Research Station uses cutting-edge scientific techniques and state-of-the-art facilities to find solutions to diverse issues in agriculture and food production. One recent application has been to partner with Sabra Dipping Company, which operates the largest hummus manufacturing facility in the world in Chesterfield County, to prove the feasibility of growing chickpeas that are ideally suited to Virginia’s climate.

    Virginia Institute of Marine Science (VIMS)

    VIMS is currently among the largest marine research and education centers in the United States. VIMS researchers help guide and steer aquaculture toward maximum healthy yields and minimal environmental impact. Field and laboratory research at VIMS is key to the recent surge in oyster aquaculture in Virginia. Researchers also study all aspects of the blue crab, with a focus on conservation and a sustainable fishery.

    The Institute for Advanced Learning and Research (IALR)

    The Institute for Advanced Learning and Research (IALR) engages the resources of Virginia Tech, Danville Community College, Averett University, and other partners to grow innovation and stimulate economic opportunity. IALR proudly promotes sustainable solutions for enhanced agricultural production around the globe with the Plant Endophyte Research Center and access to a live bacteria library with over 2,000 endophytes. 

    Most recently, IALR has partnered with the College of Agriculture and Life Sciences at Virginia Tech to launch a Controlled Environment Agriculture Innovation Center. The Center will leverage technology and research to accelerate advancements in the developing industry of indoor farming. 

    VER Q1 2020 Cover F&B

    Virginia Economic Review

    In this issue of Virginia Economic Review, we explore why leading food and beverage processors have chosen to operate alongside Virginia’s productive farms and world-class restaurants, including the supply-chain advantages that place the Commonwealth in a strong position to make and distribute those products. We also highlight the explosion of the craft beverage industry in Virginia over the past decade, as well as Virginia’s contributions to the seafood and coffee and tea industries.

    Read the Full Issue

    A Top State for Business

    Virginia is frequently recognized for its favorable regulatory climate, and it is consistently rated one of the best-run states in the country. Virginia has earned a triple-A bond rating for more than 80 consecutive years, longer than any other state, and it benefits from low risk of natural hazards in every region. A right-to-work state with only 2.5% union membership (one of the lowest rates in the country), Virginia also offers low and stable business taxes, as well as competitive utility and construction costs. 

    CNBC_#1_Business_2024
    Forbes_#1_Best States for Business - Quality of Life
    Ranking Top Regulatory Environment
    The Veil

    The Veil Brewing Co., Richmond

    An Attractive, Stable, and Predictable Operating Environment

    • Virginia is the northernmost right-to-work state along the I-95 Corridor. 
    • One of the lowest in the nation, Virginia has had a stable corporate income tax of 6.0% since 1972. 
    • Industrial electricity users paid an average rate of 6.24 cents/kWh in the winter of 2022, compared to the national average of 7.28 cents/kWh. 
    • Sound economic policy and prudent financial management has earned Virginia a AAA credit rating since 1938— longer than any other state. 
    • The Virginia Department of Agriculture and Consumer Services (VDACS) supports the state’s robust agricultural and forestry industries by helping producers and processors grow their business, build their brands, and locate the best markets for their products, both domestically and abroad. 
    • The Agriculture and Forestry Industries Development Fund (AFID) is a discretionary incentive designed to grow Virginia’s agriculture and forestry industries. AFID grants are made to localities at the discretion of the Governor with the expectation that the grant will be critical to the success of a project that will result in the creation of new jobs and investment from companies that add value to Virginia-grown agriculture and forestry products.
    • With 466 fully characterized development sites of 25 acres or larger, dozens of certified sites, and a growing inventory of spec buildings and virtual buildings, Virginia is constantly working to improve its portfolio of real estate options for food and beverage processing firms. 

    The World’s No.1 Hummus Company Innovates in Virginia

    In 2008, Sabra Dipping announced its decision to establish a state-of-the-art production facility in Chesterfield County to produce a wide range of refrigerated dips and spreads. In 2012, Sabra announced an expansion and major enhancement to its facility—the incorporation of the company’s official Center of Excellence and R&D test kitchen. The Center of Excellence features a state-of-the-art culinary center, research laboratory, ideation space, a pilot plant, and hands-on research modules. It houses experts in culinary arts, food technology, and nutrition who conduct research on chickpeas, fruits, and vegetables in conjunction with local Virginia universities. 

    Read the case study
    Sabra, Chesterfield County

    Danone North America Benefits from Virginia’s Supply Chain Ecosystem 

    Danone North America produces brands like Activia, Dannon, Horizon Organic dairy products, and International Delight. 

    Danone North America's Rockingham, VA facility sources and distributes locally, obtaining liquid cane sugar from local manufacturer Sugaright, a subsidiary of CSC Sugar. Virginia Dairy Farms, through the Maryland & Virginia Milk Producers Cooperative, ensures that fluid milk—a staple in many DanoneWaves products—is sourced locally, as well. With its constant flow of in-demand products, DanoneWave partners with Phoenix Packaging, located in Pulaski County, on packaging solutions, and utilizes another Rockingham-based company, InterChange Cold Storage, for the storage and distribution of finished products.

    Read the case study
    Danone North America, Rockingham County

    Red Sun Farms Grows High-Tech in Virginia

    Headquartered in Michoacán, Mexico, Red Sun Farms (Agricola El Rosal) is a producer of high-quality hydroponic vegetables.

    In 2013, Red Sun Farms erected state-of-the-art, climate controlled greenhouses on 45 acres of land in the New River Valley Commerce Park to grow quality greenhouse-grown, non-GMO, pesticide-free vegetables. With more than 100 employees, this 21st-century, environmentally safe greenhouse ships 200,000 pounds of tomatoes weekly from April to October. Red Sun Farms was the first tenant of the New River Valley Commerce Park.

    Red Sun Farms, Pulaski County
    Greenswell Growers

    Controlled Environment Agriculture in Virginia

    Controlled Environment Agriculture companies have called Virginia home for years, attracted to the Commonwealth's diverse ecosystem of partners and suppliers for food and beverage processors, numerous universities and research centers, and a notable abundance of natural resources.

    Discover more about this industry