Saturday, August 13, 2011

Kiolbassa expands Costco distribution

San Antonio-based sausage manufacturer Kiolbassa Provision Co. got into an additional 55 Costco stores in the upper Midwest by the end of July.

Kiolbassa previously sold its products in 17, Costco stores in Texas.

“This is three times as many Costco buildings as we are currently in, so it’s a huge opportunity for us,” said Michael Kiolbassa, president of the eponymously named company. “Our plant is capable of producing probably about 5 million pounds more than we’re producing, so there’s plenty of capacity to grow.”

The recent additions expand the company’s presence into the states of Michigan, Ohio, Indiana, Missouri, Kansas and Kentucky.

In May, it started distributing at 73 additional Sam’s Club stores in the upper Midwest and in the Southeast. It had been selling at 17 Sam’s stores before then.

Kiolbassa products are now available to about 1,255 stores. The company now distributes in 20 states.

Kiolbassa said the family-owned company has had an annual growth rate of about 17 percent for the past 20 years.

The company’s 25,000-square-foot Texas plant expects to produce 10.5 million pounds of sausage this year.

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