Dive Brief:
-
Cal-Maine, the largest U.S. egg producer, announced a majority stake in wrap and crepe maker Crepini, part of a new joint venture as the company looks to expand into ready-to-eat and prepared foods.
-
The investment creates a venture called Crepini Foods to be headquartered in Hopewell Junction, New York. Cal-Maine has a 51% stake in the venture and will spend $6.75 million to purchase additional equipment and assets.
-
Crepini is primarily known for its egg wraps, billed as a carb-free and keto-friendly alternative to tortillas. The company, founded in 2007, also offers protein pancakes, wrap-ups and other ready-to-eat products.
Dive Insight:
Traditional players in the meat and poultry industry, including Cal-Maine and JBS, have made a concerted effort to expand their presence in value-added foods, which presents an enticing new stream of revenue as more consumers rely on the frozen aisle for home-cooked meals.
Egg products, which include those sold in liquid or frozen form, made up 3.8% of Cal-Maine's revenue in fiscal 2024, and the producer is looking to expand its share through new acquisitions. The venture with Crepini "aligns 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 derive value from our other strategic investments and believe there are significant opportunities to use our scale and established customer relationships to further expand our egg products business," Miller added.
Cal-Maine has previously eyed expansions both into prepared foods and foodservice. The company in 2023 announced a joint venture called MeadowCreek Food, which supplies eggs to restaurants and institutional customers.
"We believe there is long-term growth potential in value-added products such as hard-cooked eggs, which will enable us to leverage our existing distribution channels, expand our reach in foodservice and retail marketplaces and bring new opportunities in the restaurant, institutional and industrial food products arenas," Cal-Maine said in its annual report.
Acquisitions and investments have played heavily into Cal-Maine's growth strategy. Earlier this summer, the company purchased competitor ISE America for $110 million in the producer's 25th acquisition since its founding in 1989.
