Tattooed Chef acquires two new manufacturing facilities targeting $1bn frozen Mexican food category

By Mary Ellen Shoup contact

- Last updated on GMT

Photo Credit: Tattoed Chef
Photo Credit: Tattoed Chef

Related tags: Tattooed Chef, Frozen food, Plant-based foods

Tattooed Chef has entered into agreements to acquire New Mexico Food Distributors, Inc. and Karsten Tortilla Factory, LLC (collectively referred to as “Foods of New Mexico”) for approximately $35m to ramp up production of its plant-based frozen foods offerings.

Founded in 1987 and headquartered in Albuquerque, New Mexico, Foods of New Mexico is a prepared food company that produces ready-to-eat Mexican food items for retail and foodservice. The acquisition of Foods of New Mexico's two facilities (totaling 118,000 square feet of combined production space) will allow Tattooed Chef to expand its tortilla manufacturing capabilities. 

"We have seen tremendous growth in the Tattooed Chef brand and these two facilities will allow us to diversify our product lines and significantly increase our manufacturing capabilities to capitalize on the $20bn Hispanic/Southwest Food sector and beyond,"​ Sam Galletti, president and CEO of Tattooed Chef. 

"We will be immediately addressing the $1bn Frozen Mexican Food category once the transactions close. At full capacity, we believe Foods of New Mexico can contribute up to $200m annually in revenue in the next two to three years and create significant value for all our stakeholders,​" said Galletti.

Tattooed Chef Chief Creative Officer Sarah Galletti added that the company -- which makes a range of frozen meals including 'Buddha Bowls' and 'Cauliflower Buffalo Burgers' -- sees an opportunity to introduce "nostalgic innovation into the plant-based food space" ​by leveraging the increased production space and capacity from the acquisition.

"We are confident in creating new products, pushing past our existing product line and into new spaces, and we are comfortable producing food in any category. We have a pipeline of different and innovative ideas we can’t wait to share in the coming months such as alternative tortillas using plant-based ingredients.

"We also plan to introduce innovative meals and snacks, in both frozen and ambient. Get ready, this is an exciting time at Tattooed Chef, and we are just getting started," ​Sarah Galletti said. 

With the acquisition, the company updated its full year 2021 guidance from $235m to $242m in total revenue and gross margin in the range of 20% to 25%, representing an increase of 58% to 63% compared to 2020. 

Related news

Related products

show more

How modern technology boosts quality and compliance

How modern technology boosts quality and compliance

Centric Software | 21-Jul-2021 | Technical / White Paper

Food and beverage production is subject to the rollout of changing regulations like the Food Safety Modernization Act (FSMA), and the recently released...

For optimal plant-based protein products

For optimal plant-based protein products

Innophos, Inc. | 14-Jul-2021 | Insight Guide

Exciting new plant-based ingredients can stimulate product development; however, they can also present some unique formulation challenges. With decades...

New Plant-Based Meat Analogue Technology

New Plant-Based Meat Analogue Technology

Firmenich, the world’s largest privately-owned fragrance and taste company | 16-Jun-2021 | Data Sheet

Firmenich is constantly pushing the boundaries in taste, masking and texture innovation in plant-based applications.

Critical Components to Achieving the Perfect Order

Critical Components to Achieving the Perfect Order

Oracle NetSuite | 24-May-2021 | Technical / White Paper

By achieving the perfect order, merchants will delight customers with the ultimate, omnichannel experience of buy anywhere, fulfill anywhere and return...

Related suppliers

Follow us


View more