Simplot Re-enters The Dehy Business

Published online: Apr 23, 2004
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J.R. Simplot Company of Boise, ID, announced today it will re-enter the dehyrated potato market.

Idaho Fresh Pak Inc., of Lewisville, ID, and Simplot have formed an alliance making Simplot the sole foodservice marketer and distributor of Idahoan brand dehy potato products. The brand had previously been marketed by Nestle's.

In a related agreement, Simplot announced it will complete the acquisition of Nestle's dehy granule business on June 30, 2004. Granules will initially become part of the Simplot foodservice portfolio under a license of the Trio brand, receiving Simplot branding for a year.

James Munyon, Simplot Food Group president, said through the agreements Simplot would be expanding its commitment to customers and to the potato business. He said Simplot was particularly pleased to work with Idahoan, an outstanding home-grown company.

Ray Clement, president and CEO of Idaho Fresh Pak, said the agreement would bring together two of the market leaders in dehydrated and frozen potatoes, forming an alliance unlike any other in the industry.

There will be no change in processing locations. Idaho Fresh Pak produces Idahoan and customer brands at its four Idaho plants, Lewisville, Idaho Falls, Rupert and Glenns Ferry, ID. Simplot will continue to produce granules at its Moses Lake, WA, plant.

Idaho Fresh Pak entered the dehy business in 1960 and has produced and marketed dehy under the Idahoan brand in both retail and foodservice for 44 years.

Simplot originally entered the dehy business in 1941 when founder J.R. Simplot constructed a potato- and onion-dehy plant at Caldwell, ID. The company later exited the business, focusing on the growing frozen french fry market.

Simplot is a privately held global food and agribusiness company based in Boise, ID, with 12,000 employees and annual revenues exceeding $3 billion. A foodservice pioneer and industry innovator, Simplot has 20 direct and affiliated food processing plants in the United States, Mexico, Canada, Australia and China.