Gov. Beshear: Kroger To Establish New $391 Million Distribution Center in Franklin and Create 430 New Full-Time Jobs
Company operates over 100 locations across commonwealth
FRANKFORT, Ky. (Dec. 11, 2025) – Today, Gov. Andy Beshear highlighted continued growth in Kentucky’s distribution and logistics sector as Kroger, the largest traditional grocer in the United States, announced intentions to establish a new $391 million distribution center in Simpson County, a project that will create approximately 430 new full-time jobs for Kentuckians.
“I want to thank leaders at Kroger not only for this announcement of a new potential distribution center in Simpson County but also for their continued commitment to the commonwealth over many years,” said Gov. Beshear. “Kroger has long been a crucial contributor to Kentucky’s thriving economy, and this new location helps ensure that will continue to be the case for years to come. I’m grateful for the company’s expanding presence in our state – and these 430 new jobs for our people.”
The new operation will serve as a full-line distribution center, featuring scalable and automated operations to help supply the region. This is in addition to the $204 million expansion in Bowling Green where Country Oven, a bakery owned by the Kroger Co., has reinvested in Kentucky.
Kroger was founded in 1883 and is headquartered in downtown Cincinnati. The company has more than 2,700 stores in 35 states, more than 400,000 associates and annual sales in excess of $147 billion.
Kroger maintains nearly 110 stores in Kentucky, employing more than 19,000 associates. The commonwealth also is home to four manufacturing and distribution facilities that service the company, as well as a regional headquarters in Louisville. Since 1987, Kroger’s floral designers have created the famous Kentucky Derby Garland of Roses, and Kroger and the University of Kentucky in 2017 entered a 12-year marketing agreement that included renaming the university’s football stadium to Kroger Field.
Simpson County Judge/Executive Mason Barnes spoke on the local impact of the project: “It is really great to have a corporate partner like Kroger choosing to locate in our community. The jobs being created and the amount of investment dollars are extremely beneficial to strengthening our local economy. I am very glad to have Kroger here; it certainly helps broaden our industrial diversity in Simpson County.”
Franklin Mayor Larry Dixon welcomed Kroger to the area: “We are thrilled to welcome Kroger to Franklin, Kentucky. This significant $400 million investment in our community will not only create approximately 430 jobs with competitive salaries but also strengthen our local economy. This project reflects our commitment to fostering growth and providing opportunities for our residents.”
Jim DeCesare, executive director of the Franklin-Simpson Industrial Authority, showed his enthusiasm for the project: “We are excited to see Kroger establish a distribution facility in Franklin. This $400 million investment represents not just a commitment to our workforce but also to innovation and growth in our industrial sector. The projected 430 jobs will have a lasting impact on our community and enhance our region's economic landscape.”
Kroger’s investment and job creation build on the best five-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,200 private-sector new-location and expansion projects totaling $44 billion in announced investments, creating 66,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $20 billion more than the next highest total.
The robust job creation has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; Ford Motor Co.’s $2 billion commitment in Louisville; and Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund. In 2023, Kentucky recorded over 2 million jobs filled for the first time ever and has stayed above that number ever since.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Earlier this year, Site Selection magazine ranked Kentucky in the top five nationally and second in the South Central region for economic development projects per capita in its 2024 Governor’s Cup rankings. Site Selection also placed Kentucky second in the South Central region and No. 6 nationally in its 2025 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear also announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $12 million in tax incentives based on the company’s investment of $391 million and target of creation and maintenance of 430 full-time jobs across 15 years.
Additionally, KEDFA approved Kroger for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Kroger can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Kroger, visit TheKrogerCo.com.
A detailed community profile for Simpson County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at NewKentuckyHome.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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