Kikkoman Breaks Ground in Jefferson, WI, and Grows with Local Communities
The groundbreaking ceremony for the new Kikkoman Foods plant was held on June 12 in Jefferson County, Wisconsin, and the company was enthusiastically welcomed by the local people.
Kikkoman Foods, Inc. started soy sauce production in Walworth in 1973 as a pioneer of Japanese manufacturing in the U.S. It has built a relationship of mutual trust with the local communities and grown together, and now it has become the world’s largest authentic soy sauce brewing facility.
The new Jefferson plant, to be built on a 240,000-square-foot (22,300-square-meter) site in the Food and Beverage Innovation Park, about 60 kilometers north of Walworth, is scheduled to begin shipping in the fall of 2026. The plant will produce soy sauce and soy sauce-related products, including teriyaki sauce.
Tokyo-based Kikkoman Corporation will invest $560 million (about 80 billion yen) over 10 years in the construction of a new Jefferson plant. The company also plans to expand its Walworth plant, bringing the total investment to $800 million.
At the groundbreaking ceremony, Yuzaburo Mogi, Honorary CEO and Chairman of the Board of Kikkoman Corporation expressed Kikkoman's intention to grow with the local community.
Special guests were Tony Evers, Governor of Wisconsin; Ben Wehmeier, Administrator of Jefferson County; Dale Opperman, Mayor of the City of Jefferson; and Tommy Thompson, former Governor of Wisconsin. Each of them congratulated Chairman Mogi and expressed their hopes for Jefferson to grow with Kikkoman as a community like Walworth by bringing new technologies to the new plant, which emphasized the sustainable environment, and showed their willingness to collaborate with Kikkoman based on the trust Kikkoman and Wisconsin had built for more than five decades.
Remarks by Chairman Yuzaburo Mogi
Chairman Yuzaburo Mogi greeted the guests saying, “I’m always delighted to come back to Wisconsin. I considered it my second home. More than 50 years ago I had the privilege to be part of the team,” and talked about his precious memories about a groundbreaking ceremony of the Walworth plant where the team members both from Japan and Wisconsin shared the excitement, hopes, and goodwill. His envisions to build the first U.S. facility soon became Kikkoman’s highest production plant in the world.
In 1998, together with the same colleagues and partners, he stood on California soil and opened the second U.S. plant in Holtham. Chairman Mogi then talked about his vision for the Jefferson plant, which would be the third US plant to produce the best soy sauce products for North America.
The Jefferson plant, which will be the next generation of the plant, will reduce CO2 emissions through the use of renewable energy and energy-efficient equipment. It will also create jobs for local people. The process of brewing soy sauce, the cornerstone of Japanese cuisine, takes time and care, and Kikkoman will use its brewing technology, which has been used for more than three centuries, in the next-generation plant.
Kikkoman established a sales company in San Francisco in 1957 to import and sell soy sauce from Japan, but in the 1970s, Kikkoman believed that they could transform soy sauce into truly global seasoning and decided to build the Walworth Plant. That was one of the first production facilities built by a Japanese company in the U.S.
The key factor to the success of the Walworth plant was the trust built between Kikkoman and Wisconsin.
Chairman Mogi said, “The people of Walworth, and the great state of Wisconsin embraced us from the moment we arrived. Our partnership has always been based on our shared values of cooperation, respect, loyalty, creativity, friendship, and hard work,” and he stated, “Today we are committing to an investment in the community of Jefferson and the state of Wisconsin. We’ll invest at least 800 million dollars in building the plant in Jefferson and expanding our plant in Walworth.” He continued, “We chose Jefferson for all the same reasons that led us to Walworth half a century ago. It was great market access and outstanding workforce, a central location for raw materials, and supply of pure water, and community with open-hearted sprits of partnership.”
And then Chairman Mogi said, “Kikkoman believes in Wisconsin, and we are grateful to this great state for believing in us. Our collaboration began half a century ago as a leap of faith, and today, it continues as a promise of continued growth and cultural connection.”
Remarks by Governor Tony Evers
Governor Evers responded to Chairman Mogi saying, “As we break ground on this park, the new plant is Kikkoman. Today’s event is a watershed moment in Wisconsin’s relationship with a global brand like Kikkoman.”
Gov. Evers continued to say, “As one of the state’s largest trade partners, the strong connection between Wisconsin and Japanese businesses like Kikkoman has been instrumental in driving Wisconsin’s economic growth, bolstering innovation, and creating valuable employment opportunities for communities and families across the state. Now, we are adding Kikkoman’s new facility here in Jefferson to the growing footprint of leading Japanese businesses in Wisconsin, and I’m proud about the promise this relationship continues to hold for Wisconsinites and the future of our state.”
The Governor stated, “Part of that process and partnership, I’m pleased to get together with partner Wisconsin Economic Development Corporation. We are supporting Kikkoman’s expansion with up to 15.5 million dollars in enterprise zone tax credit for the next 12 years.”
At the end of his speech, Governor Evers said, “Kikkoman is known for high-quality products, which fits perfectly with the way we do things in Wisconsin. If you want something made right, make it here in Wisconsin. I’m looking forward to seeing Kikkoman’s success for 50 years, 60 years, even 70 years.”
-- According to an April 10, 2024 release from the Wisconsin Governor's Office, Japan is Wisconsin's 11th largest trading partner and ranks as the state's 10th largest export destination and 10th largest import source. (Source: Wisconsin Economic Development Corporation)
-- There are 81 Japanese companies with over 224 operations throughout Wisconsin, and they created approximately 8,900 jobs. Since 2013, Japan has invested over $2.6 billion in Wisconsin, making it the second largest investor in the state after Canada.
Remarks by Ben Wehmeier, Administrator of Jefferson County
Administrator Ben Wehmeier of Jefferson County shared his passion for Kikkoman Foods' expansion of the plant into the Food & Beverage Innovation Park.
He said that Kikkoman's investment will make a big difference in the park, as it will enable Jefferson's vision of a next-generation industrial park with innovative technology to be realized.
Administrator Wehmeier said, “We competed with 64 sites across the Midwest, and Kikkoman chose our County, the City of Jefferson. It is a story of community. Kikkoman not only has business operations but also a culture of their business. There is a culture of how they work with a community and organizations, and a sense of being part of that community chose to invest. Kikkoman has shared values of sustainability, clean water, and involvement of lifetime workforce with family-supporting jobs. We appreciate the opportunity that they have embraced the concept of community and collaboration as all together.”
“We are proud that we are a part of this story to move forward with a special investment of Kikkoman. The company is the leader of this chapter of the future Jefferson County and creates a fabric of our local communities with other businesses. An investment is not only dollars, but an ecosystem of our community that grows together,” he said.
Remarks by Mayor Dale Opperman of the City of Jefferson
Jefferson City Mayor Dale Opperman said, “We gather here on this beautiful morning to celebrate a momentous day in the history of Jefferson. We welcome Kikkoman with open arms and much esteem.”
Mayor Opperman then officially announced that the new street leading to the new Kikkoman plant site was named “Kikkoman Way.”
Kikkoman's new plant will be located at the corner of Kikkoman Way and Innovation Drive.
Remarks by Former Governor Tommy Thompson
Former Gov. Tommy Thompson discussed how Kikkoman was building the first U.S. soy sauce plant in Walworth.
After opening a sales operation in California in 1957, young days of Chairman Yuzaburo Mogi believed that Kikkoman should go grow in the U.S. and brought his idea to the Kikkoman’s Board and his father who was then Chairman of the Board.
Former Governor Thompson said, “The Board did not see the opportunities, but Yuzabro did.”
Young Yuzaburo persuaded the Board, and his father gave him a go sign. Young Yuzaburo conducted rigorous research on more than 200 plant sites across the U.S. and chose Walworth. Thompson, then State Representative elected from a constituency including the area of Walworth, was asked to approve Kikkoman’s building plan, and he did it so.
The former Governor said, “Kikkoman started a small manufacturing facility, and now with the leadership of Chairman Yuzaburo, the facility is the largest soy sauce factory in the world.”
He said, “We are number one in cheese, number one in cranberries, number one in soy sauce,” and sent cheers to Chairman Yuzaburo Mogi, “Go Wisconsin, go Japan, go Kikkoman, go Mogis!”
Press Conference
After the groundbreaking ceremony, a press conference was held in a separate room, attended by Honorary Chairman Yuzaburo Mogi; Noriaki Horikiri, Kikkoman’s Representative Director and Executive Chairman; O.samu Mogi, Representative Director and Senior Executive Corporate Officer; Missy Hughes, CEO of the Wisconsin Economic Development Corporation; and Ben Wiehmeier, Administrator of Jefferson County. They took questions from the media and answered them.
Q: Why does Kikkoman build a new plant in Jefferson instead of expanding the Walworth plant?
Answered by Chairman Mogi: Concentrating too much production in one place would cause risks. To avoid such risks, we made the decision to build another factory.
Q: what is the significance of Kikkoman’s expansion in Jefferson, and how it would impact Wisconsin’s economy?
Answered by Gov. Tony Evers: Kikkoman is a long-standing company and has been brewing soy sauce in Walworth for over half a century. The company's expansion of production into Jefferson County is really critical. It impacts the statewide (development) effort.
Certainly, it is going to make a difference to the people in Jefferson, and a footprint of Kikkoman is more than just a soy sauce maker frankly, and how important it is to culture that Kikkoman brings to the state of Wisconsin. It is quite extraordinary, and they have worked with us for many years as partners to get the job done.
Obviously, Kikkoman's expansion will increase Wisconsin's economic success. I also believe in cultural success. I think that you always remember that Kikkoman has been a great supporter of various organizations and efforts in the state of Wisconsin, and they are going to continue doing that.
Kikkoman is a great company, cares own employees, obviously cares own products, and makes money, but also cares communities in Wisconsin.
Q: Are the incentives attractive to decide your plant site?
Answered by Chairman Mogi: Of course, we appreciate that States or Federal Government gives us incentives, which are very attractive to us. But the location of Wisconsin is very good. It’s a central location in the U.S., so it’s easy to access any market in America.
It is also important that the people here in Wisconsin are very hard-working people and sincere, and of course, there are many other factors attractive to businesses in Wisconsin.
50 years ago, when we opened our factory in Walworth, we made a rigorous study about America. We compared all states, and then finally we chose Wisconsin. During 50 years of operation, we re-realized that Wisconsin is a very good place. So, we finally chose Wisconsin as the place for the second factory in Jefferson.
Q: Regarding expansion in the Walworth plant, please give us more details and timelines.
Answered by Representative Director O.Sam Mogi: The Walworth plant was meant to produce soy sauce as efficiently as possible. So its productivity is quite high in terms of producing soy sauce.
We are standing 50 years in the U.S., and I feel a weakness that responds to increasing demand for more diversified soy base products. So for this second manufacturing plant in Wisconsin, here in Jefferson, we will concentrate on more diversified products. We’ll try to be more flexible here, so we could produce soy-base products in smaller batch sizes to meet new demand from the U.S.
Q by Chicago Shimpo: Kikkoman is going to make a huge investment of 80 billion yen in the new Jefferson plant. How would you retrieve your investment amid weak yen value in the currency market?
Answered by Representative Director O.Sam Mogi: This is a currency-exchange-rate risk. To avoid that risk, we have manufacturing operations here in the U.S. So we generate cash here in the U.S. and reinvest in the Jefferson plant. Actually, that makes business sense, just thinking about our U.S. operation. Since we are making a good profit here, and if we translate our U.S. dollar profit into Japanese yen, actually that profit turns bigger than sometime before.
Answered by Chairman Mogi: There is one important thing to add. In Japan, we have too much price competition, so it is not easy to get proper profit in Japan. Of course, we have price competition in the U.S., but it is very limited, and there may be a tendency that businessmen may try to avoid too much price competition. We have to avoid price competition as much as possible; otherwise, we cannot get proper profit.
Chicago Shimpo: Thank you very much.