Establishes One of the United States’ Most Comprehensive Mexican Food
Brands Portfolios
Hormel Foods (NYSE:HRL) and Herdez Del Fuerte, S.A. de C.V., today
announced a definitive agreement to create MegaMex Foods, a 50/50 joint
venture to market Mexican foods in the United States.
The venture will significantly expand the existing agreement between the
two companies and produces a portfolio with initial revenue of about
$200 million. The comprehensive portfolio includes brands and products,
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 expanded, long-term agreement with Herdez Del Fuerte is an example
of how we continue to look to diversify our product portfolio,” said
Jeffrey M. Ettinger, chairman of the board, president and chief
executive officer at Hormel Foods. “MegaMex Foods will have the scale
and skill set to establish leadership in Mexican foods and grow the
category. The collaboration should allow us to better serve both the
growing U.S. Hispanic population and the vast numbers of the general
population who love Mexican food.”
“MegaMex Foods will combine the premier Mexican food products and brands
of Herdez Del Fuerte with the strength in manufacturing and distribution
of Hormel Foods,” said Juan Marco Gutiérrez Wanless, chairman at Herdez
Del Fuerte. “This is an important step toward delivering on our ongoing
growth and profitability strategy and making us stronger for the future,
as we increase presence nationwide.”
In order to provide focus to the business, MegaMex Foods will be 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.
The organization of MegaMex Foods is expected to be completed around
October 26, 2009, which coincides with the start of fiscal year 2010 for
Hormel Foods.
