Wine, spirits label giant opening North Bay distribution center
A major global producer of sticker-type materials used for wine, spirits and other labels is set to open a distribution center in Solano County next month.
The Label and Packaging Materials business unit of Avery Dennison Corp. (NYSE: AVY) has leased a 69,521-square-foot warehouse in Fairfield and plans to open it in December, the Ohio-based company announced.
The 69,521-square-foot building at 2195 Huntington Drive is one of the three recently built warehouses in Tolenas Industrial Park, also home to facilities for wine packaging suppliers Ball (aluminum cans) and Ardaugh Group (glass bottles).
Avery’s stated goal for the new location is to provide same-day service to beverage producers in Northern California, including Napa and Sonoma counties and the California Central Valley.
"This new DC will help us better serve our converters and their customers by boosting our efficiencies for shipping and delivery," said Jeroen Diderich, senior vice president and general manager of Avery Dennison Label and Graphic Materials, in the news release.
The Label and Packaging Materials business made up 65% of Avery Dennison’s fiscal 2021 revenues, or $5.4 billion of the total $8.4 billion, according to a company investor presentation earlier this month.
For over a decade, Solano County has become a growing area for wine industry supply and logistics companies to set up lower-cost warehouse with close proximity to North Coast vintners. Solano is connected to the rest of the North Coast to the west by highways 12 and 37. The Interstate 80 thoroughfare links Solano to the Sacramento and San Francisco Bay areas. Interstate 505 in Vacaville provides a shortcut from the north county to the Central Valley arterial, Interstate 5.
The Fairfield distribution center announcement said that the company wanted to supply to printers (called converters) of labels for Northern California vintners and distillers “materials made to protect the planet and enable brands to connect consumers and provide detailed product information through intelligent labels.”
Avery’s other business units are Retail and Branding Information Solutions (26% of revenue), which also makes radio-frequency identification (RFID) inlays and tags, and Industrial and Healthcare Materials (9%).
Representing Avery Dennison in the Fairfield lease deal, inked in April, was Greg Smyth of CBRE. Matt Bracco, Glen Dowling and Chris Neeb of The Dowling Bracco Team at JLL represented property owner TreaJP Venture Fairfield LLC, an affiliate of Newport Beach-based Phelan Development Company.
Jeff Quackenbush covers wine, construction and real estate. Before coming to the Business Journal in 1999, he wrote for Bay City News Service in San Francisco. Reach him at email@example.com or 707-521-4256.