Business is hot for Freeburg ice company

While many are enjoying the lower temperatures this week, some local businesses depend on the hot weather to make some cold cash.

One of those businesses, Hilke's Ice Co., has a long history in Mid-Missouri area. First started in 1974 by John and Marie Hilke, the company has boomed into a massive ice operation. The company is now owned by John and Marie's son, Laron, and his wife, Donna.

For Laron Hilke, ice is more than just his family business -- it's his family's legacy.

The Hilke's Ice Co. manufacturing factory, which is located in Freeburg, includes the business office, the ice production facilities and ice storage freezers.

The ice production process begins with water. Hilke said they get all of their water from the city of Freeburg, which he said has been in the running for best tasting Missouri water for the past 10 years.

Freeburg does not treat its water; it comes straight from the well, which Hilke said translates into higher quality ice.

Hilke's Ice Co. used more than 2.5 million gallons of water in June to make ice, Hilke said.

Hilke's currently has four ice machines for production; they make a total of 200 tons a day. Two of the machines are larger and can produce 80 tons a day, while two are smaller and can make 20 tons a day.

The two larger machines can produce 1,200-1,500 pounds of ice every 10 minutes, while the two smaller machines produce 600 pounds every 20 minutes.

The water is turned into ice by a large pump at the Hilke's factory, where it is put into a large tub. Pieces of machinery then break the ice down into the ice cubes that are found in Hilke's bagged ice.

After that, the ice is ready to be bagged. The bags for the ice are produced in Mexico, Missouri. The bags have been the same since 1980, when it was designed by Laron's mother. He plans to change the bag to celebrate the company's 50th anniversary.

"I know that's the way she would want it done," Hilke said.

The bagged ice is manually placed on a pallet by employees, and is then placed in storage to await delivery. Hilke said this process will soon be automated. The automation equipment was supposed to arrive in April, but was delayed until October or November because of worldwide supply chain issues. No jobs will be cut as a result of the automation, he said.

Hilke's currently has more than 50 employees. The staff size increases in the summer as demand increases, he said. Some employees are working a partial night shift to keep up with the current demand for ice.

The staff size decreases by about half in the winter. He keeps at least 25 employees on staff at all times.

The original freezer was constructed in 1988. Hilke said he remembers his parents always saying they would never need another freezer for storage.

Little did John and Marie know how big the Hilke's business would become. A second storage freezer was built in 1993. Even this new unit proved to not be enough, as another freezer was built in 2000.

All the storage freezers stay at 20 degrees to ensure the ice stays thoroughly frozen; 800 tons of ice can be stored between three different facilities.

In addition to the three freezers located in Freeburg, a freezer is located in Cuba, Missouri. Hilke said they are looking to install a fifth freezer in the future.

Hilke's Ice Co. also has a distribution center in Eldon.

"I've got a feeling that in the next couple years I'll have to put in another freezer," Hilke said.

Hilke's Ice Co. currently serves more than 800 customers in a 120-mile radius around Freeburg. Hilke said their delivery area has expanded a lot within the past five years.

Hilke's even delivers ice out of state. They currently are delivering ice to Indiana and Wisconsin. Hilke said he has delivered to more than 25 different states, and it is normal for them to deliver out of state during the summer.

The trucks for out-of-state deliveries can hold 21 pallets of bagged ice, and stay between zero and 20 degrees. Hilke said they have also delivered lots of ice this year to various prisons, as their ice machines can't keep up with the excessive heat.

Hilke's currently sells ice in two different quantities. The white bags contain seven pounds, while the blue bags contain 20 pounds. Block ice is also available, but Hilke said it is not a popular choice. He said they probably won't make block ice any more once the current stock is gone.

"Block ice is just a thing of the past," Hilke said.

Hilke said block ice accounts for about 1 percent of his business, while the 20-pound bags are about 70 percent of sales -- even in the winter.

Hilke said most of their sales are to resellers, such as grocery stores, restaurants and bars. Hilke has sold lots of ice to concrete companies this year, as they use the ice to bring down the temperature of the concrete.

Some larger ice companies have offered to purchase Hilke's Ice Co., but Hilke has declined every offer.

"We aren't going to sell out to the big boys," Hilke said. "We are going to keep it this way."

Hilke said people like supporting local businesses, which is one aspect to their success. People have also just grown accustomed to seeing Hilke's Ice.

"People are used to the name. That blue bag is affiliated with that name. And we're still family owned and operated," Hilke said.

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