P L A N N I N G D E PA R T M E N T
O E W D
S P U R
B A E U R B A N E C O N O M I C S

What is the Food & Beverage Industry Cluster?
 Food Manufacturing
 Bakeries, Chocolate & Confections, Seafood Processing, etc
 Beverage Manufacturing
 Breweries, Wineries, Distilleries
 Food & Beverage Wholesalers
 Grocery, Alcoholic Beverage, Farm Products & Supplies Wholesalers
Why is this important to San Francisco economy?
 Supports Employment and Socio-Economic Diversity
 Blue-collar jobs create opportunity for all educational backgrounds
 Cluster Effects
 Positively reinforcing loops can accelerate growth and innovation
 The San Francisco Brand
 Unique, creative businesses attract diverse residents and support the tourism, hospitality, and other

 Manufacturing and wholesaling make up a small part of the regional and San Francisco economies...
Bay Area
Manufacturing/Wholesale vs. Total Economy
2012
13% 87%
 …but Food & Beverage jobs make up an important part of those sectors, especially in San
Francisco.
San Francisco 4% 96%
Manufacturing & Wholesale Jobs All Other Jobs
Food/Bev. vs. Other Mfg/Wholesale
2012
Bay Area 16% 84%
San Francisco 24% 76%
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014
Food & Bev.Mfg/Wholesale Jobs Other Mfg & Wholesale Jobs

 San Francisco plays a small role in the region’s food and beverage manufacturing.
 Alameda, Napa, and Sonoma Counties are major players.
Food Manufacturing
211
1 853 22,930
Beverage
Manufacturing
18,085
Food & Bev.
Wholesalers
2 986 23,308
0 5 000 10 000 15 000
Number of Employees
20 000 25 000
Alameda Contra Costa Marin Napa San Francisco San Mateo Santa Clara Solano Sonoma
.
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014
*As per QCEW disclosure policy, employment data for Beverage Manufacturing and Alcoholic Beverage Wholesalers in Solano County and for Farm Product Raw Materials Wholesalers in multiple counties are not publicly disclosed.

12 000
 In the Bay Area, San Francisco had the largest loss in food manufacturing jobs
Food Manufacturing Employment Growth
1990 - 2012
10 000
8 000
6 000
Alameda
4 000
2 000
0
1990 1992 1994 1996 1998 2000 2012
Santa Clara
Sonoma
San Mateo
San Francisco
Solano
Contra Costa
Napa
Marin
2002 2004 2006 2008 2010
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.

10 000
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
-
 Since 1990, food manufacturing has accounted for most of the loss in cluster jobs
 In recent years, however, wholesaling and manufacturing have both grown again
San Francisco Food & Beverage Cluster Employment Trends
1990 - 2012
Food Manufacturing Beverage Manufacturing Food & Bev. Wholesalers
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.

Food and Beverage Jobs in San
Francisco, 1990 - 2010
 Food and beverage manufacturing jobs have declined in San Francisco since
1990…
1990
2000
 … even as jobs in restaurants, bars, grocery stores, and liquor stores grew
2010
32 209
42 941
47 472
6 966 6 220
8 465 3 393
8 726 1 863
0 10 000 20 000 30 000 40 000 50 000 60 000
Food Services and Drinking Places
Food and Beverage Stores
Food and Beverage Manufacturing
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.

Food Manufacturing
(1,853)
0
San Francisco Employment by Sector
2012
500 1 000
Number of Employees
1 500 2 000
Bakeries and Tortilla
Man. 1 054
Other
317
Animal Processing 214
Seafood 98
Sugar & Conf. 95
Fruit & Veg. 46
Dairy Products 29
2 500
Beverage Manufacturing
(211)
Breweries & Distilleries 113
Wineries 67
Soft Drink & Ice 31
Food & Bev. Wholesalers
(2,986)
Grocery & Related
Products 2 075
3 000
Alcoholic Beverages
866
Farm Supplies 43
Sources: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW), 2012; BAE, 2014.

San Francisco Food Manufacturing Revenue
2012
 Bakeries have highest revenue in total, but also large number of small establishments (not shown)
Bakeries & Torillas
Beverage
Animal Slaughtering
Seafood
 Coffee & Tea and Candy manufacturing are small subsectors in terms of revenues
Fruit & Veg.
Coffee & Tea
Sugar & Confectionery
$32 020 000
$10 650 000
$6 920 000
$5 990 000
$34 552 000
$34 310 000
$107 973 000
Sources: Dun & Bradstreet, 2013; BAE, 2014.

 Real estate and capital access are the top challenges for manufacturers
 Transportation/access and workforce issues are bigger challenges for wholesalers than for manufacturers
Food & Bev. Manufacturers
(47 respondents)
Real Estate 27%
Wholesalers/Distributors
(12 respondents)
Labor costs 23%
Transportation/Access Capital access 21% 19%
Real Estate Regulatory issues 12% 16%
Skilled workforce Transportation/Access 11% 16%
Regulatory issues Labor costs 9% 13%
Skilled workforce 8%
% responses (multiple selections)
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.
Capital access 10%
% responses (multiple selections)

 Top reasons for San Francisco location?
 Near customers and “brand” of San Francisco
Food & Bev. Manufacturers
(47 respondents)
Wholesalers/Distributors
(12 respondents)
Near customers Near customers
Brand association
Near home
Industry community
Transportation
10%
6%
Support services 6%
Found ideal space 5%
% responses (multiple selections)
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.
20%
19%
18%
Brand association
Near suppliers
Found ideal space
Near employees
15%
15%
12%
12%
Near home 8%
% responses (multiple selections)
35%

 Most manufacturers operate in their own space or a commercial kitchen
 More than half of manufacturers will need new or expanded space within one year
Current Production Space
(Manufacturers only)
Own space
Commercial kitchen
Shared space
Copacker 13%
19%
26%
43%
Need for New or Expanded Space
(Manufacturers Only )
In the next few months
14%
In the next year
43%
After more than one year
21%
Not in the immediate future
21%
% responses
Sources: SFMade, 2014; SF Planning, 2014; BAE, 2014.

 San Francisco’s Food and Beverage Cluster:
 Has relatively small share of Bay Area Food Cluster employment
 Accounts of ¼ of all City’s manufacturing/wholesaling jobs
 Has seen a steep decline in employment since 1990, but appears to be leveling off since 2006
 Has more jobs in wholesaling than manufacturing (with grocery wholesalers as largest)
 Bakeries is largest type of food manufacturer
 Top challenges facing Cluster in San Francisco:
 Real Estate (Affordable/Available Space + Build-Out Costs)
 Access to Capital
 Labor Costs
 Regulatory Issues
 Skilled workforce
 Mobility (Transportation + Distribution Access)

Sources: BAE, 2014.

 Did we “get it right on the challenges facing this cluster?
 Affordable space
 Access to capital
 Transportation issues
 Workforce issues
 Regulatory issues
 How can San Francisco help existing food and beverage manufacturers and wholesalers to stay and grow?
 What facilities, infrastructure, or services are missing today that, if located in
San Francisco, would help existing businesses and attract new ones?

Next Steps
 Steering Committee Meeting
 Draft Report
 Steering Committee Meeting
February 26
March 17
 Final Report April 21 st
 Final Steering Committee Meeting Date TBD th
March 26 th th
Contacts
Diana Sokolove
Food System Policy Manager
San Francisco Planning
Department
(415) 575-9046 diana.sokolove@sfgov.org
Eli Zigas
Food Systems and Urban
Agriculture Program Manager
SPUR
(415) 644-4881 eli.zigas@spur.org
Tiffany Garcia
Business Development Manager
Office of Economic and
Workforce Development
(415) 581-2322 tiffany.garcia@sfgov.org