Interfoods in Talks with French Food Company for Joint Distribution Alliance
ENCINO, Calif.--(BUSINESS WIRE)--June 10, 1999--Interfoods Consolidated, Inc. (OTC BB:IFCO) today announced that it has entered into discussions with a French meat manufacturing and processing company headquartered in Anonnay, France regarding a joint venture distribution partnership.
Interfoods is exploring the possibility of working with Leon Chaillot, a 50-year old meat manufacturing and processing company in establishing a distribution center in the U.S. market to serve as its distribution platform for its high quality meat products.
Interfoods and Leon Chaillot officials held preliminary discussions in Leon Chaillot's Anonnay, France headquarters yesterday.
As previously announced, Interfoods officials also met earlier this week in Paris with its potential French fast-food joint venture partners as part of its ongoing discussions to establish a U.S. presence of their fast food chain which was created in France in 1995. Management expects to conclude this dialogue in the next 30 days.
Interfoods Consolidated, Inc., through its operating subsidiaries, is a manufacturer, distributor and marketer of specialty gourmet and Mexican food products. Its wholly owned subsidiary, Holland America International Specialties, is a 56-year old wholesaler and retailer of specialty gourmet foods. Interfoods also manufactures Mexican food products through its Sierra Vista Foods, Inc. subsidiary.
OVERVIEW
Interfoods Consolidated Inc. (OTC BB:IFCO) was formed in 1997 to capitalize on the growing consolidation opportunities within the food industry. Acting as a holding company that aggressively targets well-defined niche food businesses, Interfoods currently has operating subsidiaries in two highly attractive market segments: specialty gourmet and Mexican food products.
INDUSTRY
Leading industry sources indicate that the market for specialty gourmet foods will reach $49 billion by year 2000. Research shows that many consumers are becoming more inclined to spend on specialty gourmet food products. As the population grows and consumers become more aware of this food segment, this number is likely to continue growing. Interfoods' Holland American subsidiary is positioned to exploit this marketplace.
The Mexican food industry is an estimated $6 billion market and is very fragmented with over 700 family-owned Mexican food companies. Most of these companies are located in close proximity to the Mexican-American population and have revenue of less than $10 million.
GROWTH
Specialty Gourmet Food Subsidiary
Holland American has the opportunity to grow its business exponentially through add-on acquisitions. The emerging specialty gourmet foods industry is highly fragmented with annual sales in excess of $40 billion. Many food experts think that this industry is ripe for consolidation. The specialty gourmet foods industry still has a lot of room for growth since it only accounts for about 6% of the aggregate food industry. The industry has experienced a lot of mergers and acquisitions the last few years as competitors start positioning themselves in this emerging food segment.
Mexican food Subsidiary
Hispanics make up one of the fastest growing segments of the population. This group is growing five times faster than non-Hispanic groups. Today, the Hispanic-American population accounts for about 30 million, or roughly equal the population of Canada. Interfoods estimates that of the nearly 700 companies in the Mexican food industry, only about 20% have annual sales of more than $10 million. Due to this fragmentation, Interfoods will be poised for internal growth and will take advantage of acquisition opportunities in the highly fragmented Mexican food industry.
Certain information and statements included in this release constitute "forward-looking" statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.
CONTACT:
Interfoods Consolidated Inc., Encino
Eric Manlunas, 818/981-8030, ext. 2
KEYWORD: CALIFORNIA INTERNATIONAL EUROPE
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