Ever wonder how M&M's get their crunchy shells? Or how Reese's Peanut Butter Cups and Pop-Tarts get their decadent fillings? Or how that perfect dollop of creamy goodness sneaks into the middle of an Oreo?
The answer lies deep inside Graco Inc.'s factory in Minneapolis, where towering pumps and sprayers are manufactured that let American food factories rhythmically dispense or squirt gallons and gallons of food ingredients — from peanut butter to tomato paste and Godiva chocolate fillings.
With little hoopla, Graco has quietly built a business of Food and Drug Administration-approved pumps and spraying machines that are renowned within the food industry. The unit is still small but one of Graco's fastest-growing segments, doubling since 2010.
It's enough to make a junk food addict drool and an investor smile.
Food companies consider Graco's technology sacred, although the Minneapolis company — which employs 3,600 global employees and has $1.3 billion in annual revenue — is more likely to talk about its much larger units that make industrial pumps and sprayers that paint vehicles, insulate homes or fireproof oil rigs.
"Every M&M in the world is made with our equipment, and we pump the stuffing for all Oreo cookies" in Asia and Canada, said Kevin Jagielski, sales and marketing manager of Graco's Process Division. "Doritos uses our [oil] sprayers in their tumblers so the seasonings stick to each chip. We do the fruit for Pop-Tarts. It's a part of Graco most people never think about. But [food processors] know that what Graco really specializes in is pumping the really difficult and thick fillings that have high viscosity. We are the market leader."
Other customers include General Mills, Cadbury, Ben & Jerry's, Samuel Adams beer and Tropicana. The Schwan Food Co., based in Marshall, Minn., uses Graco's food-moving machines to make frozen pizza and sauces. Graco's equipment also transports Coca-Cola's syrups, Campbell's soups, Skippy's peanut butter, McDonald's ketchup and Kemps' milk through factories for bottling, canning, molding and bagging.
"It's almost like Graco's been keeping a secret," said Angela Petersen, executive director of the Minnesota Precision Manufacturers Association. "They are sitting on one of the best-kept secrets in the manufacturing sector. More marketing … would grow excitement and create additional opportunities. It has endless possibilities."