PepsiCo will not renew Worley contract

CEDAR RAPIDS - PepsiCo will not renew a logistics and warehousing contract with Worley Companies in Cedar Rapids, ending a 35-year relationship.

The Purchase, N.Y., company's decision to award a contract to Genco, a Pittsburgh, Pa.-based logistics provider, will affect 100 Worley employees at 3805 Sixth St. SW in Cedar Rapids. The change from Worley to Genco operation of the warehouse is effective Dec. 28.

The Sixth Street SW facility stores and distributes PepsiCo-Quaker products manufactured at the company's plant in downtown Cedar Rapids, including cereal and pancake syrup. While Worley Companies operates the warehouse, PepsiCo controls the lease for the facility.

Brandt Worley, president of Worley Companies, said none of the company's other facilities in Cedar Rapids will be affected by the PepsiCo decision. The company, which provides logistics and warehousing for food, industrial and bioscience companies, employs about 290 in Cedar Rapids.

Jody Menaker of PepsiCo said the company's decision to change providers after so many years was difficult.

'While we greatly value Worley's contributions as a business partner, we have made the decision to pursue a new direction,” Menaker said. 'Genco plans to retain as many of the current Worley Warehouse associates as are qualified and interested in remaining on the account.”

Worley said the PepsiCo contract is one of the company's largest and oldest business agreements.

'We have employees at our Sixth Street SW facility who have been with us for more than 30 years,” he said. 'They were some of the first people hired by my father (Robert Worley) when he started our company in 1977.”

Worley said PepsiCo awarded the contract to Genco after conducting a nationwide bidding process. He said his company will focus on serving its existing customer base.

'Our growth pipeline is full and we intend to continue to have a major presence in this market as well as focus on new regional and national growth opportunities,” Worley said.