Greg Estep, Olam Spices CEO said:
“Formerly known as Border Foods, CPB has been the leading chile pepper business in the US for nearly 50 years. Combining CPB’s specialty and green chile range with our red chile portfolio (which includes paprika, chile powder and chile pepper) means we can deliver a wider range of ingredient solutions for customers looking to satisfy the rising demand for authentic Mexican flavors – already the third most popular cuisine in the country.
“We are further pleased that in operating CPB, Mizkan shares the same focus on sustainable agriculture and quality control, maintaining close farmer relationships and fully integrated supply chains. This also allows Olam Spices to strengthen and expand our chile sourcing network — notably in Hatch Valley, New Mexico. With the CPB senior executive leadership at the helm, supported by an outstanding group of employees committed to excellence, we will continue to grow the business even further.”
Olam Spices is the leading supplier of dried garlic, onion and chile-based ingredients and a global leader for pepper, tropical spices, purées and parsley. With its facility in Las Cruces, New Mexico, it is the largest organic chile grower and processor in the US, with full traceability from seed to delivery. It is one of OIL’s five leading food ingredient businesses, which along with Cocoa, Coffee, Nuts and Dairy, have come together under the ofi banner to co-create exciting category applications and solutions for its customers and their consumers.
A. Shekhar, CEO of ofi, said:
“This is a fitting first acquisition for ofi, as CPB fulfils ofi’s vision to help its customers meet consumer preferences for health, nutrition, natural and authentic ethnic flavors, as well as their increasing demands for understanding the provenance and environmental impact of their food choices.
“CPB’s chile operations are second-to-none, with a strong heritage, steady financial performance and leading shares for all its products. Further, CPB supplies grocery and retail channels that offer increasing co-manufacturing opportunities in the US and Asia for many of our other products. The addition of CPB’s range of premium green chiles will also broaden and strengthen ofi’s portfolio in plant-based solutions, which continue to gain popularity among consumers. For example, working with ofi’s innovation team we can produce a nut based cheese that has a jalapeño flavor kick.”
The CPB operations in Deming are less than 60-miles from Olam Spices’ red chile manufacturing facility in Las Cruces, New Mexico. The close proximity will enable an effective combination of established green and red chile market capabilities, and allow for even stronger manufacturing and product development, coupled with taste and flavor innovation. It also supports deeper grower relationships in the region, particularly with those growing specialty varieties.