Mexican La Costeña expands its operations in the U.S.

La Costeña group, a privately held global leader in packaged foods, completed the acquisition of Faribault Foods, Inc, a U.S. company producer of canned beans and canned vegetables. This acquisition will expand La Costeña’s business in the United States.

According to a statement by La Costeña, the Faribault Foods plant, located in Minneapolis, will join forces with the Arizona Canning plant, headquartered in Tucson, who is affiliated to the group La Costeña. Now both companies Arizona Canning and Faribault Foods combined will operate as Faribault Foods.

[dfads params=’groups=15&limit=1&orderby=ID&order=DESC‘]“Our goal is to provide customers with premium brands, private label, and contract manufacturing capabilities plus growing our U.S. business,” said Albert Hoflack, president and CEO of Arizona Canning, who will head the merge, while Reid MacDonald, president and CEO of Faribault Foods, perform consulting functions.

Faribault Foods products include brands such as S & W canned beans, Butter Kernel, Kuner’s and Kuner’s Southwestern, Chilliman, Mrs. Grimes, Pride and KC Masterpiece baked beans. It also has a large number of private business contracts with leading manufacturing brands.

Meanwhile, Arizona Canning products brands include Sun Vista, Luck’s, Kerns and Totis.

Regarding the purchase of Faribault Foods, which has been owned by the same family since 1917, the financial terms of the transaction were not reported although they said the management team, employees and facilities Faribault Foods shall be kept as part of the combined company.

Faribault Foods will have approximately 700 employees, including around 550 in the three plants in Faribault, Cokato and Elk River, Minnesota; and about 150 employees in Tucson, Arizona.

La Costeña is one of the most recognized brands in Mexico. Last year the company had a 17% share of the Mexican market for canned and preserved foods, similar to Grupo Herdez, according to market researcher Euromonitor International.