MEDIA RELEASE

SAN FRANCISCO, CA – The San Francisco Planning Department, the Office of Economic and Workforce Development (OEWD) and SPUR today released a comprehensive study exploring trends in the food and beverage production and distribution sectors. Mayor Edwin M. Lee announced the publication of the report, titled “Makers and Movers Economic Cluster Strategy: Recommendations for San Francisco’s Food and Beverage Manufacturers and Distributors” at the SFMade’s State of Local Manufacturing Breakfast this morning. 

“To continue to grow and diversify our local economy, I created a five-point plan to preserve and support local manufacturing and distribution businesses,” said Mayor Ed Lee. “San Francisco will continue to focus on growing the food and beverage sector, which provides good paying jobs for many San Franciscans.”

Mayor Lee announced his 5-Point Plan in October 2014 to preserve and grow local manufacturing and distribution businesses. It focuses on Building New Industrial Space on Private Sites, Building New Industrial Space on Public Sites, Upgrading Existing Industrial Space, Preserving Existing Industrial Space, and Retaining and Growing Production, Distribution & Repair (PDR) Businesses. 

San Francisco is experiencing a surge of interest in developing a more sustainable food system, with food and beverage manufacturing and distribution sectors growing again after many years of decline. At the same time, food manufacturing, processing and distribution businesses that provide a local link between producers and consumers find it difficult to start and expand within the city. 

Report findings include:

• As of 2012, San Francisco had 370 Food and Beverage production and distribution firms, employing just over 5,000 workers;

• San Francisco has the third largest wholesale/distribution employment base among the region’s counties, with nearly 3,000 employees;

• The City’s Food Manufacturers employed 1,850 workers, with bakeries as the single largest subsector. The fifth largest employer of food makers of the nine Bay Area counties; and

• Many of the entry-level jobs in the Food and Beverage Sector leads to higher paying positions for workers who may otherwise have limited opportunities to gain vocational training and work experience and or have advanced education.

The report includes four Cluster Strategies, identifying several key areas where the main challenges identified by food and beverage business owners can be addressed. Within each area, the report includes specific policy recommendations to support food and beverage production and distribution businesses in San Francisco.

The Cluster Strategies are:

• Increasing the supply of affordable, suitable space;

• Improving transportation access and transit options for employees, including improving late night and early morning transit access;

• Developing and retaining skilled local workforce; and 

• Providing technical support.

“We have been an organic food business in San Francisco for 40 years,” said Bu Nygrens, co-owner of Veritable Vegetable. “Our culture, identity and values are deeply rooted here. We are heartened by this report’s recognition of the vital importance of food and beverage enterprises as essential contributors to our City’s economy and reputation. We look forward to working together to ensure that both new and existing food businesses can help create a truly equitable food system here in San Francisco.”

“This study shines a new light on the ongoing change and growing opportunity, especially in the eastern neighborhoods,” said San Francisco Planning Director John Rahaim. “The food and beverage industry continues to flourish and make significant contributions to job growth, diversity and sustainability for San Francisco. It deserves our support in addressing the challenges it faces.”

“Mayor Lee has made reviving the city’s industrial sector a priority, and OEWD has been on the front line, providing direct assistance to help local manufacturing and distribution firms grow and add jobs in San Francisco,” said Todd Rufo, Director of the Office of Economic and Workforce Development. “The food and beverage sector strategy makes clear that the needs and opportunities for this critical sector are real and we’ve already moved aggressively to implement key recommendations of the report.”

"With this report, the City is underscoring the valuable role that our food manufacturers and distributors play in the city's economy and the region's food system," said Eli Zigas, Food Systems and Urban Agriculture Program Manager at SPUR.

San Francisco Planning and OEWD will continue working with the food and beverage business community and appoint liaisons from both departments to implement the report’s recommendations.

The full report can be found here.