Simplot Inks Deal to Produce Ore-Ida Products for Kraft Heinz

American food manufacturer The Kraft Heinz Co. announced Wednesday that food and agribusiness firm J.R. Simplot Co. will produce and supply products for Kraft’s Ore-Ida brand under a long-term strategic supply agreement.

Simplot’s division Simplot Food Group will support the brand with its expertise in potato processing and distribution and supply it with potatoes starting in the 2023/24 crop season. Kraft will transfer ownership of its Ontario, OR potato plant to Simplot as part of the agreement. In turn, Simplot agreed to invest capital in the location to help the facility meet future demand and offer positions to the plant’s existing headcount of 600 workers.

“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,” Renee Peets, senior vice president, North America Procurement at Kraft Heinz, said in a company release. “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.”

Kraft plans to transfer ownership of the plant in the second quarter of 2022. The company said the move reflects its focus on agility in the management of its portfolio.

“With our combined history of making and serving high-quality frozen potato products and our shared dedication to the communities where we operate and the customers we serve, we have a bright future in front of us,” said Simplot Food Group President Mark McKellar in a statement.