Dive Brief:
- Tyson Mexico Original, a unit of Tyson Foods, has purchased Utah tortilla maker Don Julio Foods. Terms of the deal were not disclosed.
- The purchase adds considerable capacity to Tyson Mexico Original, which is already the largest manufacturer of of tortillas in the U.S., trailing only Gruma's U.S. operations.
- Don Julio sells to consumers under the Don Julio and Clover Club brands.
Dive Insight:
Tyson Mexico Original sells to foodservice companies. Tyson's purchase of Don Julio means the company will now sell tortillas directly to consumers for the first time. We won't venture a guess as to whether this marks the first steps of a major push into consumer sales of Mexican foods for Tyson, but such a strategy -- think prepared chicken tortillas -- would seem to fit with the company's forays into convenience stores.