Hormel Foods Corporation and Herdez Del Fuerte SA de CV have 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 portfolio that includes brands such as ChiChi’s, Herdez, La Victoria, Embasa, and Doña María that 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 of 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.”
MegaMex Foods is a free-standing entity with an independent management team based in Chino CA. The company will optimize efficiencies by leveraging core competencies of the parent companies, such as manufacturing, research and development, and the supply chain.
Hormel, based in Austin MN, is a multinational manufacturer and marketer of consumer-branded food and meat products. For more information, visit www.hormelfoods.com.
Based in Mexico City, Herdez Del Fuerte is a manufacturer and marketer of consumer-branded food and beverages in Mexico and the United States. It 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 SAB de CV and Grupo KUO SAB de CV. For more details, visit www.grupoherdez.com.mx and www.kuo.com.mx.