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Dive Briefing:
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Cal-Maine, the largest egg producer in the United States, Most of the shares Crepini, a wrap and crepe maker, is part of a new joint venture as the company looks to expand into ready-to-eat and processed foods.
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The investment creates a venture called Crepini Foods, headquartered in Hopewell Junction, N.Y. Cal-Maine has a 51 percent stake in the venture and will spend $6.75 million to purchase additional equipment and assets.
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Crepini is primarily known for its egg wraps, which are advertised as a carb-free, keto-friendly alternative to tortillas. Founded in 2007, the company also offers protein pancakes, wrap-ups, and other ready-to-eat products.
Dive Insight:
Established players in the meat and poultry industry, including Cal-Maine and JBS, have been working together to expand their presence in value-added food segments, an attractive new revenue stream as more and more consumers turn to the frozen food aisle for home-cooked meals.
Egg products sold in liquid or frozen form Accounts for 3.8% It will account for 50% of Cal-Maine’s fiscal 2024 sales, and the producer is looking to expand its share through new acquisitions. The joint venture with Crepini “is consistent with our growth strategy to enhance our product portfolio and focus on value-added products and other egg product opportunities,” Cal-Maine President and CEO Sherman Miller said in a statement.
“We have a proven ability to drive value from other strategic investments and believe there is significant opportunity to further expand our egg products business by leveraging our scale and established customer relationships,” Miller added.
Cal-Maine has previously looked to expand into prepared foods and foodservice. The company announced a joint venture called MeadowCreek Foods in 2023 to supply eggs to restaurants and institutional customers.
Cal-Maine said, “We believe there is long-term growth potential in value-added products such as boiled eggs that will allow us to leverage existing distribution channels, expand our presence in foodservice and retail markets, and bring new opportunities to the restaurant, institutional and industrial food product segments.” annual report.
Acquisitions and investments have played a big role in Cal-Maine’s growth strategy. Earlier this summer, the company announced Competitor ISE America It is the production company’s 25th acquisition since its founding in 1989, worth $110 million.
