Joint venture establishes one of the most comprehensive Mexican food brands portfolios in the United States
Hormel Foods Corporation (NYSE: HRL) and Herdez Del Fuerte, S.A. de C.V., today announced the closing of a 50/50 joint venture agreement to create MegaMex Foods, LLC, which will market Mexican foods in the United States.
The venture significantly expands the existing agreement between the two companies and produces a portfolio with initial revenue of about $200 million. MegaMex Foods has a comprehensive portfolio that includes brands such as CHI-CHI''S®, HERDEZ®,LA VICTORIA®, EMBASA® and DOÑA MARÍA®, among others, which resonate with Mexican-American and mainstream consumers of Mexican foods.
“This new venture takes our relationship with Hormel Foods to the next level, and it is a win-win all around,” said Enrique Hernández-Pons Torres, chairman of the board, MegaMex Foods. “By forming MegaMex Foods, we are able to better serve our retail and foodservice partners and consumers while positioning our businesses for long-term growth.”
“The close of this exciting transaction marks the beginning of new leadership in the Mexican foods category in the United States with MegaMex Foods,” said Luis G. Marconi, managing director at MegaMex Foods. “We look forward to growing the Mexican foods category by serving as a one-stop-shop for our retail partners, with brands and products that appeal to consumers across geographies and demographics.”
MegaMex Foods is a free-standing entity with an independent management team based in Chino, Calif. MegaMex Foods will optimize efficiencies by leveraging core competencies of the parent companies, such as manufacturing, research and development and the supply chain.
About Hormel Foods
Hormel Foods Corporation, based in
Austin, Minn., is a multinational manufacturer and marketer of
consumer-branded food and meat products, many of which are among the
best known and trusted in the food industry. The company leverages its
extensive expertise, innovation and high competencies in pork and turkey
processing and marketing to bring quality, value-added brands to the
global marketplace. The company is a member of the Standard & Poor''s 500
Index, and in each of the past 10 years, Hormel Foods was named one of
“The 400 Best Big Companies in America” by Forbes magazine. The
company enjoys a strong reputation among consumers, retail grocers,
foodservice and industrial customers for products highly regarded for
quality, taste, nutrition, convenience and value. For more information,
visit http://www.hormelfoods.com.
About Herdez Del Fuerte
Herdez Del Fuerte, based in Mexico
City, is a leading manufacturer and marketer of consumer-branded food
and beverages in Mexico and the United States. The company has a strong
product portfolio mainly based in tomato, fruit, vegetable, jalapeño,
mole sauce, coffee and tuna products marketed under highly recognized
and valued brands, including HERDEZ®, DEL
FUERTE®, DOÑA MARÍA®,
LA VICTORIA®, NAIR®, EMBASA®,BÚFALO®, LA GLORIA®, CARLOTA®
and BLASÓN®, among others. Herdez Del Fuerte also
markets and distributes products from affiliated companies such as
Hormel Alimentos, McCormick de México and Barilla México. To fulfill its
retail and foodservice customer and consumer needs, Herdez Del Fuerte
operates seven manufacturing facilities and nine distribution centers
across Mexico with more than 6,000 employees. Herdez Del Fuerte is a
joint venture between Grupo Herdez, S.A.B. de C.V., and Grupo KUO,
S.A.B. de C.V. For more information, visit http://www.grupoherdez.com.mx
and http://www.kuo.com.mx.
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Contacts:
Burson-Marsteller
Katy Gucinski, 214-224-8439 (office)
katy.gucinski@bm.com
or
Hormel
Foods Corporation
William W. McLain, 507-437-5641
wwmclain@hormel.com
