CHICAGO — The Kraft Heinz Co. and Simplot Food Group, a division of the J.R. Simplot Co., have come to phrases on a brand new settlement establishing Boise, Idaho-based Simplot because the unique producer and provider of the Ore-Ida model, which is owned by Kraft Heinz.
Under phrases of the settlement, Simplot is anticipated to develop the model by introducing world-class innovation and expertise to the enterprise in addition to creating better efficiencies by vertical integration, together with supplying potatoes for the model beginning with the 2023-24 crop season.
Kraft Heinz, in the meantime, will switch possession of its potato manufacturing plant in Ontario, Ore., to Simplot someday in the second quarter of 2022. Once possession has been transferred Simplot has dedicated to make capital investments as wanted to fulfill rising demand for the model. The plant at present employs roughly 600.
“Consumer demand for our delicious Ore-Ida potato dishes remains high, proving there is substantial opportunity to grow the current portfolio of products while also introducing new and exciting foods from the brand,” stated Renee Peets, senior vice chairman, North America procurement at Kraft Heinz. “Today, Ore-Ida is approximately half a billion dollars in terms of net sales, and we believe there’s still a lot of untapped growth. The expertise and innovation that the J.R. Simplot Co. will bring to the brand is unrivaled, and thanks to our exclusive strategic supply partnership, we’ll now be able to bring new and expanded offerings from Ore-Ida to market faster than we ever have before.”
Ore-Ida was based in 1949 by brothers Francis Nephi Grigg and Golden Grigg, and later acquired by the H.J. Heinz Co. in 1965. The model’s merchandise embrace french fries, tater tots, hash browns, immediate mashed potatoes and a line of frozen merchandise.