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September 28, 2018

MegaMex Foods, Utz Quality Foods sign distribution deal

US snack maker Utz Quality Foods is to distribute a range of products for MegaMex Foods, a venture between local food major Hormel Foods and Mexico's Herdez del Fuerte.

US snack maker Utz Quality Foods is to distribute a range of products for MegaMex Foods, a venture between local food major Hormel Foods and Mexico’s Herdez del Fuerte.

UTZ is to provide direct-store delivery MegaMex’s Chi-Chi’s tortilla chips, as well as the Chi-Chi’s and Herdez snacking salsas and dips.

“The vision of MegaMex Foods is to bring the spirit of Mexico to every table,” said Ryan Michaelis, president and CEO at MegaMex Foods. “Our
partnership with UTZ Quality Foods is yet another step forward in making this vision a reality.”

Hormel and Herdez del Fuerte formed MegaMex in 2009 to market Mexican foods in the US.

A year ago, Utz Quality Foods announced the acquisition of US peer Inventure Foods in a US$165m deal. In July 2016, Inventure, after a period of running up losses, launched a “strategic” and “financial” review of its operations.

Earlier this week, Hormel announced plans to spend US$150m on expanding the manufacturing plant of its subsidiary Burke Marketing Corp. in Iowa.

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