With the addition of a new core product, Milwaukee-based pizza manufacturer Palermo Villa Inc. has grown its market opportunity by more than $50 billion.
The company’s new high-hydration dough production line expands Palermo’s current market opportunity from $6 billion within the frozen pizza industry to nearly $60 billion within the general pizza industry.
That production line is located in the company’s new West Milwaukee plant located at 3900 W. Lincoln Ave., the former site of a Froedtert Malt & Grain factory. Froedtert Malt & Grain moved to near 38th and Grant streets in West Milwaukee in 1920. It closed in the early 2000s before being bought by Malteurop in 2008.
The 200,000-square-foot Palermo’s plant includes one large production line, an innovation center, conference rooms and warehouse space.
Thirty-two people currently work at the West Milwaukee plant due to the highly automated process. Company-wide, Palermo’s has 1,414 employees.
“We built this facility to be more for custom manufacturing,” said Nick Fallucca, chief product and innovation officer at Palermo’s, representing the third generation of his family’s leadership within the business.
Nick Fallucca
The company’s Canal Street headquarters in Milwaukee, located in the Menomonee Valley just three miles away from the West Milwaukee plant, serves as a one-stop-shop for retail customers looking to purchase frozen pizzas. The West Milwaukee facility broadens Palermo’s customer base.
The company now works with convenience store and food service customers as a contract manufacturer, helping them create their own bread-based products.
“As far as untapped market for us, there’s so much more potential in the world of pizza,” said Fallucca. “That’s just pizza. What’s great about this facility is we can not only make crust, but we can make buns and rolls and products like that. That broadens our horizon.”
Palermo’s has a list of seven food service items it hopes to perfect in the coming years to have key products it could pass along to food distributors like Sysco, which would then distribute the product to smaller restaurants and businesses.
“We probably have another 20 or so custom items (for clients) that we’re also working on,” said Fallucca.
A hub for innovation
Palermo’s has spent the last three years perfecting the manufacturing process for its high-hydration dough.
Palermo’s flew in proprietary equipment from Italy to make its high-hydration dough. Company leadership previously told BizTimes that Palermo’s is the only manufacturer in North America currently using the technology.
The Falluccas sourced this specialized equipment during their travels overseas. The family travels to Italy several times a year for both business and leisure.
When the family realized they couldn’t incorporate this new equipment into one of their existing facilities, they decided it was time to construct a new one.
The high-hydration dough ferments over a 24-hour period. This process breaks down the gluten in dough to provide an airier, lighter and crispier crust. Once the dough is frozen, gluten breaks down even more.
New products made with Palermo’s high-hydration dough include an Urban Pie “Pinza” Roman Style Pizza (which can currently be found in stores like Whole Foods and Piggly Wiggly) and a Roman style “Screamin’ Sicilian” take and bake pizza (currently being piloted at select grocery stores on the West Coast).
Little adjustments to the manufacturing process, like how much water is used and the temperature of the dough, were needed as the production process transitioned from the test lab to full-scale.
The West Milwaukee plant will eventually produce 50 million pounds of product, both dough and pizzas, annually. The West Milwaukee plant makes pizzas in a variety of shapes and sizes.
There are minor differences between the products Palermo’s designed in the lab versus the final products that have hit shelves. For example, the new Screamin’ Sicilian Roman Style Crust pizza turned out thicker than what was produced at a smaller scale.
“The product we ended up liking was just a little bit lighter and fluffier,” Fallucca said. “It was eating better a little bit thicker, so we made that change. It was just so much better than what we had in the lab.”
Regardless of how a client might like to use Palermo’s dough, the West Milwaukee innovation center allows them to see firsthand how a certain product would be replicated in their business.
“What we have here is the ability to replicate anyone’s restaurant,” said Fallucca. “If they only have a deck oven, we can show them exactly how to make a product.”
To maintain its competitive edge, Palermo’s has a dedicated team of bakery and culinary experts on hand in West Milwaukee. They’re constantly testing new products and keeping track of what’s popular in the food manufacturing industry.
“Our team is always looking ahead at food trends,” said Fallucca. “Another company might be able to buy the same equipment as us, but the ability to make a quality product with it makes the difference.”
