Jobs and Prosperity Fund Awards Dr. Oetker Canada $7M in Grants
Dr. Oetker Canada is the Canadian division of the Oetker Group, an international food and foodservices corporation. The organization operates in 35 countries across Europe, Asia, and the Americas, with its main headquarters in Germany. Its Canadian operations are headed in Mississauga, Ontario and its sole manufacturing facility, dedicated to making oven-ready frozen pizzas is based in London, Ontario.
The Jobs and Prosperity Fund’s Food and Beverage Growth Fund has awarded Dr. Oetker $7M for a new frozen pizza production line at its London manufacturing plant.
Dr. Oetker’s new pizza manufacturing line will nearly double the amount of pizzas produced per hour, and allow for more ingredients to be sourced from Southwestern Ontario farmers. Overall, this will create 103 new jobs, boost London’s local economy, and support the competitiveness and future growth of Ontario’s agri-food sector.
The Food and Beverage Growth Fund is one of four streams of the Ontario government’s Jobs and Prosperity Fund (JPF). JPF is an Ontario business grant that supports beverage and bio-product manufacturing projects with funding for job creation, enhanced productivity, and export expansion initiatives.
$7M in Ontario Business Grants Awarded to Dr. Oetker
In early 2018, Dr. Oetker Canada announced they would shift all Canadian pizza production to London, Ontario. They have seen significant success with this decision and are now producing over 40 million pizzas a year, compared to 27 million when the Ontario plant first opened in 2014.
Dr. Oetker has received $7M in Ontario government funding through the Jobs and Prosperity Fund to enhance productivity through new production line technology.
The government’s investment will support a new oven-ready frozen pizza production line that is responsible for dough preparation, baking, toppings, freezing, and packaging. New high-speed press technology will be implemented, allowing both the smaller (1-2 serving size) and the larger (family-size) pizzas to be made. As well, the rate of pizzas produced per hour will increase from 10,000 to 18,000.
This capital investment project will also increase the amount of Ontario inputs that Dr. Oetker Canada uses from $9.4M to $23.3M per year, which will support the province’s agri-food supply chain. The company’s goal is to make pizzas from 100% fresh Ontario ingredients, to not only support local farmers, but to also decrease transportation costs. This investment in Ontario’s food processing sector will position the plant to compete on a global scale; the Ontario government funding will also help create 103 jobs and retain 115 positions.
Jobs and Prosperity Fund (JPF) Business Expansion Funding
The Jobs and Prosperity Fund supports large-scale capital investment projects across Ontario that extend a company’s capabilities and boost international competitiveness. Delivered through grants, projects that are eligible for funding must enhance productivity, demonstrate innovation, and create sustainable jobs.
The Ontario government funding program has four unique streams. Typically, eligible costs from JPF business expansion funding are covered at 10-15% based on the stream:
- Food and Beverage Growth Fund: Focuses on innovative food and beverage technology projects.
- New Economy Stream: Focuses on innovative projects building productivity and international competitiveness.
- Strategic Partnerships Stream: Focuses on developing enabling technologies with the potential to transform multiple industries.
- Forest Growth Fund: Focuses on improving the productivity, innovation, and competitiveness of Ontario’s forestry sector.
To explore expansion options available to Canadian manufacturers such as JPF funding, please download Mentor Works’ Key Tips: Expanding Production in Canada slide deck.
Posted: June 5, 2018 by Myra Bredin. Updated: June 5, 2018 by Myra Bredin.