The Pittsburgh, Pennsylvania-based Kraft Heinz Co. and Simplot Food Group, a division of the J.R. Simplot Co., announced that the two companies have signed a long-term agreement naming Simplot as the exclusive manufacturer and supplier of Ore-Ida. Kraft Heinz will continue to own the Ore-Ida brand.
Simplot is expected to help grow the Ore-Ida brand by introducing new innovation and technology to the business, as well as creating greater efficiencies through vertical integration, including supplying potatoes for the brand starting with the 2023-24 crop season.
As part of the agreement, Kraft Heinz will transfer ownership of its potato manufacturing facility in Ontario, Oregon, to Simplot, with Simplot committing to make capital investments as needed to meet elevated demand. The handover of the site is anticipated in the second quarter of 2022.
“Today [Feb.23], 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 Company 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,” said Renee Peets, SVP of North America Procurement at Kraft Heinz.
“The Ore-Ida brand is well-known and loved, and we’re thrilled to help ensure the continued success of this iconic family favorite through our Kraft Heinz partnership,” said Mark McKellar, president of Simplot’s Food Group. “With our combined history of making and serving high-quality frozen potato products and our shared dedication to the communities where we operate and the customers we serve, we have a bright future in front of us.”
For more information, visit kraftheinzcompany.com or simplot.com.