Hormel Foods and Herdez Del Fuerte today (4 November) announced the closing of a 50/50 joint venture agreement to create MegaMex Foods.

The joint venture was formed in June for the creation of a company to market Mexican food in the US.

The venture significantly expands the existing agreement between the two companies and produces a portfolio with initial revenue of about US$200m.

MegaMex Foods has a portfolio that includes brands such as Chi-Chi's, Heredez, La Victoria, Embasa and Dona Maria.

"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."

MegaMex Foods is a free-standing entity with an independent management team based in Chino, California.