Rio Pluma Company
"Small community, big rewards."
That's how Eric Heitman describes Butte County, California. Heitman speaks from personal experience. As CEO of Rio Pluma Company LLC, he recently moved the San Jose-based prune manufacturing operation to Gridley.
Rio Pluma Company is part of the Stapleton-Spence Packing Company, whose roots were planted nearly half a century ago when Jerry Stapleton and Lee Spence purchased an existing prune packaging and canning facility in San Jose. Through the years, the company acquired other canning and dehydrating operations, built a juice plant, and grew to become one of the world's largest packagers of prunes.
Today, the company specializes in the packaging of prunes for private labels and the food services industry‹hotels, hospitals, cruise ships, etc. And Rio Pluma Company is now the only canner of prunes, purchasing fruit from 143 independent growers and processing 12,000 tons of prunes annually. The prune industry continues to grow as international markets expand and new prune products, such as fat substitutes and meat additives to aid in moisture retention, are introduced. But, though the market is growing, the company was unable to expand its operations in the Bay area.
As the surge of high-tech industries has devoured farmland and sent land prices soaring, agribusiness has been forced to look elsewhere to remain competitive. Rio Pluma Company looked toward California's Central Valley, where the multi-billion dollar agricultural industry remains an economic leader.
Heitman found the perfect relocation site just three hours away from company headquarters‹an existing 106,000 sq. ft. plant in Butte County. With a few modifications the plant would be up and running in time for harvest season.
Butte County rolled out the welcome mat. The community drilled a well large enough to supply the company's daily water needs of 100,000 gallons, and helped secure the funding necessary to build a water treatment plant. And Heitman soon discovered that the City of Gridley owned its own utility, which will allow the company to save as much as 25 percent on its annual electric bill.
"It's a lot different working with Butte County," says Heitman. "Government is friendlier. We went from being a little fish in a big pond to a company that can add benefits to the community."
Both civic leaders and the community at large appreciate Rio Pluma Company's presence. Heitman has been amazed by Butte County's labor pool. Though few of the company's San Jose employees chose to make the move, it hasn't prevented Rio Pluma Company from filling all its labor needs.
"We didn't even advertise," says Heitman. "We posted a flyer on the front door stating that we would accept applications and within three days we had 454 applications."
He adds that not only does Butte County have a good labor availability pool, but also he's been able to find workers to fill positions at all skill levels and that "the people have a strong work ethic."
The proximity to its growers has also been a plus, allowing Rio Pluma Company to reduce some of its trucking costs. Yet, the company has not ventured so far away from the Bay area as to hamper its international sales, which still pass through the Port of Oakland.
Company Information
Address:
Highway 99
Gridley, CA
530-846-5200
Eric Heitman, CEO
Food Processing
Product: Processed Prunes
Process: Purchase prunes from 143 growers and process 12,000 tons annually. Can and label for private and food service industry.
Fast Facts
Employees: 70
Square Footage: 106,000
Customer Base: International, about 1/3 is exported. Largest international users are Japan and Germany.
Top Factors in Site Selection:
1. Ability to dispose of water
2. Availability of good labor
3. 25% lower utility costs
4. Close to raw materials
5. Existing Real Estate
© Butte County Economic Development Corporation 1999-2001. Any other use must have express permission.
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