680 Business Journal

Serving the 680 Corridor in Contra Costa and Alameda counties
2121 North California Blvd. #290, Walnut Creek, CA 94596 925-938-8747                                           REPRINT from
Summer 1999/Page 1


Packaged Ice signs deal with Safeway

By MERLE ROSS

BENICIA - As part of its expansion to the west coast, Pack-aged Ice inc., the largest manufacturing distributor of packaged ice in the nation, has signed a big contract with Safeway Stores. Under the contract. the Houston, Texas-based company will install its ultra-efficient Ice Factory machines in some 240 Safeway supermarkets throughout northern California and cast to Reno.

In addition, Packaged Ice has established its northern California regional distribution center in 3,7000sf of leased warehouse space at 3195 Park Road in Benicia Industrial Park in Benicia. The new center will be responsible for installation and service of the ice - making machines throughout the center's northern California territory. Larry Hazard of CRS in Walnut Creek represented the landlord and Bill Bassett of Coldwell Banker Commercial, North Bay Realty handled the lease for Packaged Ice.

As part of its expansion, the company has also opened offices in Seattle, Los Angeles and San Diego. 

Automatic, self-contained units

The ice Factory machine, developed by Packaged Ice president James Stuart, is a self contained unit that looks like a typical cooler. However, machinery on top of the cooler automatically makes ice from filtered water, puts the ice cubes in bags, lowers the bags into the cooler. The machines electronically keep track of how many bags have been sold and produce more ice as needed. The Ice Factory also determines if a door has been let ajar or if the equipment is malfunctioning.

Typically leased to high-volume store type operations, such as Safeway, one machine can generate 1,920 pounds of ice per day. To supplement the machines, Packaged Ice has ice plants strategically located throughout the southern half of the nation to augment the ice supply when demand is heavy. These plants also supply ice to industrial, commercial, and agricultural users as well as sporting events and fairs.

Quick expansion planned

Packaged Ice intends to expand quickly throughout northern California, according to Michael Busch, vice-president in charge of the Ice Factory program.

Initially, the company will have six employees in Benicia. "As we put more machines into markets, we will add more peoples" he says. "We will add a person for every 15-20 stores. So every 100 stores, we will add five more people. We hope to have 500 600 stores very quickly so we are talking about 20 25 people."

Dramatic growth

Packaged Ice has grown dramatically since its first Ice Factory machine was introduced in 1994. In the first two years, the company installed more than 650 units, mainly in the southwest. Then, through joint ventures and acquisitions the company began to grow more aggressively. In 1998, Packaged Ice purchased two of the largest ice companies in the country, and annual revenues hit $179 million. In January of this year, the company went public, trading on Nasdaq under the symbol CED.

Packaged Ice row serves more than 74,000 customers in 27 states and the District of Columbia, operates 84 ice manufacturing plants, and has installed more that 2,050 in-store Ice Factories.  Because of the Ice Factory, the company has been a dominant player in the field. In fact, the in-store store machines have eliminated 35% of business of typical ice plants.

`'Packaged Ice, because of its technology and bagging system, is being recognized by industry leaders like Safeway and others," says Mr. Busch. "The Ice Factory program is now being seen as the way of tomorrow for large-volume supermarkets."

For more information, call 713-646-9384.

 

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