Chukar Cherries has a $1.8M love letter for you. It’s written in chocolate

Chukar Cherries is doubling the size of its production facility, a love letter to Prosser that hints at a commitment to a future with more jobs.

Chukar and its longtime partner and landlord, the Port of Benton, announced plans for a 12,000-square-foot expansion at Chukar’s headquarters, 320 Wine Country Road, on Monday.

The news kicks off the iconic Prosser brand’s 30th year and will provide welcome relief when the project wraps in August.

“We have just been bursting at the seams, “said Alli Newhouse, Chukar’s spokeswoman.

The family-owned company will consolidate its two Prosser operations in a single building, where it will also expand its chocolate room and tasting room. Chukar intends to continue to lease its second Prosser location at the Prosser Wine & Food Park for the time being.

The expansion is driven by an annual growth rate of 6-8 percent in demand for Chukar’s chocolate confections, sauces, pies, salsas, caramel corn, dried nuts, trail mixes and bakery goods.

Chukar has about 50 full-time equivalent positions.

Its payroll swells to 140 or more during its busy winter season because of surges in holiday sales and shipping.

Chukar’s plant looks like a big game of musical chairs during those frenzied months, Newhouse said.

The expansion will provide breathing room and allow the company to offer tours for those who want to see how it produces its celebrated chocolate-covered cherries and other treats.

“We want to open things up and show people how our produts are made,” she said.

Online sales growth has been strong, but Newhouse said the company has seen growth in all channels, including its retail outlets at Seattle’s Pike Place Market and its two Prosser locations.

It has several niche outlets as well, selling for corporate gifts and in the tasting rooms of local wineries.

The company has leased its production space from the Port of Benton since it graduated from its founder’s barn.

Scott Keller, port director, said the expansion will cost $1.8 million, including design and other fees.

The port secured a $100,000 grant from the Hanford Area Economic Investment Fund to support the project. The balance is being financed through the port’s $5 million line of credit with Banner Bank.

Keller said the credit line offers more flexibility than traditional bond financing, including the ability to repay outstanding balances early.

The port has successfully used the approach to finance prior projects.

Keller said Chukar’s lease payments will more than cover the debt service, whch he predicts will be repaid in 15 years if not sooner.

Banlin Construction, the Kennewick firm that recently built the Columbia Gardens Urban Wine & Artisan Village project for the Port of Kennewick, is constructing the Chukar expansion.

Keller called Chukar a win for Prosser and the port.

“It’s just a huge employer for Prosser and it’s a star for us,” he said. “We can be really proud that we’ve helped.”

* Chukar Cherries, 320 Wine Country Road, Prosser, is open daily from 8 a.m. to 6 p.m., Monday to Saturday, and from 10 a.m. to 5 p.m., Sunday.

* The Prosser Tasting Room is at 2880 Lee Road, Suite 7, in the Prosser Wine & Food Park. The tasting room operates seasonally. Go to chukar.com/visit-chukar for details.

This story was originally published February 12, 2018 at 6:06 PM with the headline "Chukar Cherries has a $1.8M love letter for you. It’s written in chocolate."