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Kraft Heinz's Deal Names Simplot As Exclusive Manufacturer, Supplier Of Ore-Ida Brand

Kraft Heinz Co. (KHC) announced Wednesday that it has signed long-term agreement with privately held Simplot Food Group, a division of food and agriculture company J.R. Simplot Co.

The deal names Simplot as the exclusive manufacturer and supplier of Ore-Ida brand potato dishes. Kraft Heinz will continue to own the Ore-Ida brand.

Simplot, a potato manufacturer and distributor, is expected to help grow the Ore-Ida brand by introducing innovation and technology as well as vertical integration, including supplying potatoes for the brand starting with the 2023/24 crop season.

As part of the deal, Kraft Heinz will transfer ownership of its potato manufacturing facility in Ontario, Ore., to Simplot. Capital investments as needed will be made by Simplot to meet elevated demand. The handover of the site is anticipated in the second quarter of 2022.

The Ontario facility currently employs approximately 600 people. Employees will receive pay and benefits comparable to that provided to similarly situated Simplot employees.

Renee Peets, senior vice president, North America Procurement at Kraft Heinz, said, "Consumer demand for our delicious Ore-Ida potato dishes remains high, proving there is substantial opportunity to grow the current portfolio of products while also introducing new and exciting foods from the brand. Today, Ore-Ida is approximately half a billion dollars in terms of net sales and we believe there's still a lot of untapped growth."

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