Allied Starch strengthens position in tortilla market
firm Ingredients Unlimited as part of its plan to capitalize on the
lucrative North American tortilla market.
"Our acquisition of Ingredients Unlimited is in keeping with our robust five year business strategy to strengthen and extend our ingredient offerings and meet our goal to double the size of our company by the end of a five year period," said ASC president Randy Schmelzel.
"We are now in a prime position to provide important ingredients to tortilla manufacturers. This acquisition complements our previous purchase of Kinçva, which increased our ability to provide exemplary anti-caking agents for cheese products."
Tortillas represent a growing snack sector for American consumers with little time, but who are now more nutrition-conscious than ever. The Census Bureau estimates that tortilla sales in the United States, through all channels (food service, institutional and supermarkets) are increasing at 17 percent per year, making it the fastest-growing segment within the baking and snack industries.
Corn tortillas are growing more rapidly than flour tortillas, although flour remains the leading type of tortilla in North America. The overall tortilla market in North America is estimated at around $5 billion, according to the Tortilla Industry Association (TIA).
Allied Starch & Chemical has already achieved a significant presence in this fast, steadily growing tortilla market. The acquisition of Ingredients Unlimited should help the firm to increase its product lines, proprietary technology, customer base and production equipment while adding some key, knowledgeable tortilla manufacturing experts to the existing team of ASC's ingredient professionals.
Tortilla ingredient production will continue in the acquired Ingredients Unlimited facility in Bell Gardens, California, under the Allied Starch & Chemical banner. This manufacturing resource will complement the products that are currently produced at Allied Starch & Chemical's manufacturing division, Mississippi Blending Company in Keokuk, Iowa and all products will be sold through Industrial Ingredient, the distribution arm of ASC.
"We are looking forward to continuing the business relations formed by Ingredients Unlimited, and want customers and suppliers to know that there will be no interruption of service, and they can count on quality products and service from us now and in the future," said Schmelzel.
