Cereal and pet food facility poised for $32M expansion in Fairburn

One of the largest names in breakfast cereal and dog food is prepared to spend $32 million to expand a warehouse southwest of Atlanta, but there’s a catch.

Company leaders say they need a tax break to seal the deal — just like the warehouse’s developer argued nearly a decade ago when building it.

Minnesota-based Post Consumer Brands, which is known for cereals including Fruity Pebbles and Honey Bunches of Oats, has requested a $1.3 million property tax break as part of its expansion plans, adding that it is considering other sites in the Carolinas. The Development Authority of Fulton County, also known as Develop Fulton, obliged during its Tuesday meeting, unanimously providing preliminary approval for the incentive.

The project was endorsed by Fairburn city leaders, who welcome the promise of 35 new jobs and additional tax revenue as part of the warehouse expansion.

This Fairburn warehouse is leased to Post Consumer Brands, the maker of several cereal and dog food brands. (Courtesy of Post Consumer Brands)

“We are excited about the fact that they’ve chosen to continue to grow their footprint here in the city of Fairburn,” City Administrator Tony Phillips told The Atlanta Journal-Constitution. “In an economy that is in many respects challenging, adding 35 new jobs is significant.”

He added that a second incentive for the same property is a sign of “the competitiveness of the market that we’re in today,” saying Fairburn is prepared to provide tax breaks to woo corporate investment.

Located at 4955 Oakley Industrial Blvd., the warehouse was developed by Illinois-based First Industrial Realty Trust roughly a decade ago. The industrial developer approached the development authority in late 2016 to request an incentive for the project, which was approved two years later. The estimated tax savings for that incentive was not immediately available.

Post Consumer Brands in 2019 leased the 700,000-square-foot facility, making it a distribution center. It currently employs 64 workers.

The company in 2023 paid $1.2 billion to acquire J. M. Smucker Co.’s dog and cat food brands, including Rachael Ray Nutrish, Kibbles ‘n Bits and Nature’s Recipe. Post aims to make the Fairburn facility a Southeastern hub for its cereal and pet food distribution, which requires expanding it to just over 1 million square feet.

Randy Ridenhour, senior vice president of tax at Post’s parent company, said the expansion involves a seven-year lease with two five-year extensions. The current warehouse’s lease would be amended to match that schedule.

The interior of a Fairburn warehouse leased to Post Consumer Brands, the maker of several cereal and dog food brands. (Courtesy of Post Consumer Brands)

“It would be unlikely that we would not continue to operate there because for us to terminate that lease with First Industrial would be (at least) $10 million,” Ridenhour told the authority board when asked about his company’s commitment to Fairburn. “So that’s just not something that is likely to happen.”