Hormel Foods Corp. and Herdez Del Fuerte S.A. de C.V. are expanding their relationship, announcing Friday they will form a 50/50 joint venture to market Mexican foods in the U.S.
The venture, to be called MegaMex Foods, will be based in Chino, California, the companies said in a statement today. Its organization will be completed on October 26.
“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, president and chief executive officer at Hormel Foods in a released statement.
The agreement combines the Herdez brands with Hormel’s strength in manufacturing, said Juan Marco Gutiérrez Wanless, chairman at Herdez Del Fuerte.
The product portfolio has an initial revenue of $200 million, the companies said. Brands and products to be marketed will include Chi-Chi’s, Herdez, La Victoria, Embasa, and Doña Maria.
The companies must still agree on the venture’s structure and ancillary agreements related manufacturing, management, product and trademark licenses.