Harry & David DC a Big Deal in Ohio

Harry & David's largest distribution center is about to get a little bigger: The multichannel retailer best known for its Moose Munch candy mix and its Royal Riviera pears is adding 45,000 sq.-ft. to its Hebron, OH-based facility. The $16 million expansion will be completed in fall 2008.

"This expansion is in response to sales growth of these products in all channels. This addition will allow us to reduce transportation costs while at the same time increasing our production to meet customer demand," said Bill Williams, Harry & David's president/CEO, in a staement.

According to published reports, the Hebron DC expansion also makes sense because Ohio offered generous incentive-based tax credits. To receive $351,000--a seven-year, 45% tax credit--from the state, Harry & David must maintain a presence in Hebron for at least 14 years and keep its current workforce of 225.

The company said it expects to add about 160 new full-time jobs to the DC, with an annual payroll of approximately $4 million. The Hebron facility shipped more than 3.6 million gifts last year--about 1 million more than Harry & David's Medford, OR-based headquarters.