Cal-Maine acquires majority stake in egg processing, expands into processed foods

This sound is generated automatically. Let us know if you have feedback.

Brief description of the dive:

Cal-Maine, the largest U.S. egg producer, announced majority share at Crepini, a producer of crepes and wraps, which is part of a new joint venture that aims to expand the company’s activities into the production of ready-to-eat and processed foods.
The investment creates a venture called Crepini Foods, headquartered in Hopewell Junction, N.Y. Cal-Maine has a 51% stake in the venture and will spend $6.75 million to purchase additional equipment and assets.
Crepini is best known for its egg tortillas, which are marketed as a carb-free, keto-friendly alternative to tortillas. The company, founded in 2007, also offers protein pancakes, wraps, and other ready-to-eat products.

Diving Insight:

Traditional meat and poultry players including Cal-Maine and JBS have made a concerted effort to expand their presence in the value-added food market, which represents an attractive new source of revenue as more consumers turn to frozen foods for at-home meals.

Egg products, which include those sold in liquid or frozen form, accounted for 3.8% Cal-Maine’s revenue in fiscal 2024, and the company plans to increase its share through new acquisitions. The Crepini venture “is consistent with our growth strategy to expand 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 capture value from our other strategic investments and believe there are significant opportunities to leverage our scale and established customer relationships to further expand our egg products business,” Miller added.

Cal-Maine had previously considered expanding into both processed foods and foodservice. In 2023, the company announced a joint venture called MeadowCreek Food, which would supply eggs to restaurants and institutional customers.

“We believe there is long-term growth potential in value-added products such as hard-boiled eggs, which will allow us to leverage our existing distribution channels, expand our reach in foodservice and retail markets, and create new opportunities in the restaurant, institutional and industrial food product areas,” Cal-Maine said in its report. annual report.

Acquisitions and investments have played a significant role in Cal-Maine’s growth strategy. Earlier this summer, the company purchased ISE America competitor for $110 million. It was the manufacturer’s 25th acquisition since its founding in 1989.