1/16/2009« Back to Listings
Living Essentials tops expectations
Category:General News
News Coverage:
Living Essentials tops expectations
By ROY CHURCH
Friday, January 16, 2009 7:14 PM EST

So far, so good.

That's how officials at Living Essentials, 210 Bond St., are looking at their business in the midst of one of the worst economic downturns in our nation's history.

Jim Haller, plant controller here, said “demand is still growing” for the company's 5-Hour Energy Drink.

Haller and Vice President Ed Snyder appeared before the Wabash City Council in September seeking tax abatement on its expanded operations in the former MarkHon building and for a new $6 million distribution center and warehouse in the Wabash North Industrial Park.

When Living Essentials, headquartered in Novi, Mich., moved its production and distribution operations to Wabash late in 2007, company officials promised a capital investment of $2.6 million and 36 jobs. Employment is now up to 99 people, Snyder said.

Today, a mixing unit and two bottling lines are up and running and the equipment is in the building for two more bottling lines. They should be running by the end of February.

“We hope to do the installation ourselves,” Haller told the Wabash Plain Dealer. “With three lines running we will be able to meet our current demands.

“We like to be cautious in how we expand,” he continued. “We like to bring on people as we need them. When we hire them we want them to be permanent employees.”

Living Essentials, which came into being around 2001, also moved its research and development component to Wabash in the last year.

When all is said and done, the company's capital investment here will be around $15 million.

“We are very happy with the progress we have made in Wabash,” Snyder said. “We expect to be adding more people in 2009.

“We have grown more than I had expected (when we came in 2007). We expect to continue growing in 2009, and are happy to be growing in the present economy.”

The doubling of employees is mirrored by a doubling of sales since 2007, he said. The 5-Hour Energy Drink is sold nationwide and in Canada.

Last year, the company began running advertisements on ESPN with several National Football League standouts and on other outlets with NASCAR legend Rusty Wallace and his son, current driver Steve Wallace.

When Living Essentials moved into the old MarkHon building in 2007 it tore down the offices on Bond Street and was only using part of the production facilities.

“When I got here in June (2008),” Haller said, “they were using every square inch of the complex and renting other space nearby.”

That's when the decision was made to build the warehouse and distribution center here. Initially, officials intended to put it in the MarkHon complex, but that proved to be impractical. Total square footage there is only 145,000.

Looking for alternative sites, they looked at the old GDX building across the street and other facilities outside Wabash County. Then officials from the Economic Development Group of Wabash County and the city proposed the site at the far west end of the north industrial park.

Construction began late last year, most of the steel is up now and completion is set for May 1, weather permitting.

The distribution center and warehouse sits on a 30-acre plot and the building will be 200,000 square feet. And it will be capable of doubling in size if and when the time comes.

Haller and Snyder had nothing by praise for city and EDG officials.

“They have all been very supportive throughout this process. If there has been anything we've needed, we've just called them and they have gone to work to help us out.”

“We are very happy with Bill Konyha (EDG president and CEO) and city officials,” Snyder echoed. “They have always been there to help us out.”

The praise goes both ways.

“I wish I had five more just like them,” Konyha said. “They have been outstanding to work with ... very cooperative.

“And what I really like is that their business relates to this century and the global economy. And I love that they moved their research and development component here.

“Living Essentials is a real key for us,” Konyha said. “With Major Moves and completion of the Hoosier Heartland Industrial Corridor, they are our first foray into the logistics and distribution industry. They give us a base to build on.”

Mayor Bob Vanlandingham talked about it being the “right time” for Living Essentials and Wabash to get together. “They give us a fresh look; they're not tied to the automotive or housing industries.

“It gives the city a lift to see them building. They're doing positive things out there.

“It's been a good partnership and one we hope will continue for a long time.”