A contract manufacturer of dips, sauces, dressings and marinades has opened a 53,000-square-foot production facility in Kyle, delivering dozens of new jobs to the city south of Austin.
ATX Specialty Foods LLC on May 3 held a ribbon-cutting for the facility in the Hays Commerce Center, an industrial park developed by HPI Real Estate Services and Investments Inc. along the I-35 corridor.
ATX Specialty Foods produces consumer packaged goods for companies such as Hopdoddy Burger Bar, Julio’s Seasoning & Corn Chips Inc., Pluckers Wing Bar, Tarka Indian Kitchen and Freebirds World Burrito.
The company acknowledged last year that it had outgrown its 16,000-square-foot Slaughter Lane location in South Austin.
Executives said the new space will allow for larger production run capabilities for specialty items, food service production, packaging options and product development opportunities.
They also wanted to be closer to employees, many of whom are being priced out of Austin. ATX Specialty Foods employs 47 and could grow to 70 to 80 employees in the new space.
ATX Specialty Foods founder and CEO John Anderson called it a "day of celebration," according to a May announcement from the Greater San Marcos Partnership.
"This facility represents our unwavering support to provide nothing but innovation, excellence and growth. We're ready to take this company to new heights," he said. "Together with the city of Kyle, our board, our customers, our vendors, our team ... this will enable us to continue to serve the food industry here in Texas and across the nation."
Salsa in the process of packaging at ATX Specialty Foods.
ATX SPECIALTY FOODS
It's another influx of jobs for Kyle, which saw its population surpass 50,000 in 2021, according to U.S. Census Bureau estimates. The city's growth trajectory, fueled in part by proximity to Austin and location along heavily trafficked I-35, has attracted warehouse and manufacturing businesses such as quilting supplies company Fat Quarter Shop LLC and RK Logistics Group Inc.
When ATX Specialty Foods was founded a decade ago, it would ship a handful of pallets a week. As of early 2022, that had grown to about 100 pallets a week — equating to roughly 4 million to 5 million pounds of food sold per year. Anderson previously predicted the company would be able to grow production by 10 times in the Kyle space.
"Nearly everyone is familiar with ATX Specialty Foods, whether by name or by the sauce that goes along with their favorite hamburger, or their go-to tikka-masala or chipotle pepper sauce bought at the grocery store," stated Victoria Vargas, Kyle's director of economic development. "We are thrilled they chose the city of Kyle as their new home, and we look forward to the unique flavor they will bring to our community along with additional job opportunities that will further strengthen the city’s economic diversity and sustainability."
ATX Specialty Foods is an example of a co-packer, or contract packager/manufacturer. It works with other companies to turn their ideas into consumer packaged goods, an industry known as CPG. Co-packers are a popular option for CPG companies looking to produce at scale without the added investment of their own real estate or equipment.
Kyle Mayor Travis Mitchell said the project had been in the works since before he took over as mayor in 2017.
"It takes patience that is sometimes difficult, especially for entrepreneurs and business owners to be able to just stay the course until such a time as a business like this can come to fruition," Mitchell said. "Congratulations to ATX Specialty Foods for staying the course, we’re extremely proud of you, proud to have you as partners in the city of Kyle."