Ruiz Foods, country’s top maker of frozen Mexican foods, gobbles up another manufacturer

Dinuba-based Ruiz Food Products, Inc. just grew bigger.

The nation’s largest manufacturer of frozen Mexican foods announced Wednesday it has purchased the assets of Culinary International, LLC. The plant in Vernon has about 300 workers and produces ready-to-eat and frozen Mexican food.

The two companies are not strangers. Culinary International makes products for Ruiz Foods.

The purchase price was not disclosed.

“Culinary International has been a co-packer of some of our products for the last six years,” said Don Antonelli, Ruiz Foods President and CEO, during a Thursday telephone call. “After further discussions with them, it became apparent that there would be an opportunity for us to acquire them.”

Antonelli, who became Ruiz Foods’ top executive last year, said Culinary International is “an excellent partner. We know the quality of burritos and other products that they make.”

With the acquisition, Ruiz Foods adds to its production facilities in Dinuba, Tulare, Texas, and South Carolina. The company has about 4,000 employees.

Antonelli did not disclose annual sales for Ruiz Foods, but co-founder Fred Ruiz, speaking at a UC Merced commencement in 2021, projected the company’s sales would top $1 billion in 2022.

The purchase includes Culinary International’s 75,000-square-foot manufacturing facility and a nearby 43,200-square-foot cold storage and dry goods warehouse.

Ruiz Foods said the purchase will allow it additional flexible manufacturing capacity on the West Coast.

Antonelli said it took “two to three months” from the start of discussions to close the buy.

“This acquisition will enhance our customer service levels as we leverage our core values of innovation, safety, quality, teamwork, integrity and respect,” said Antonelli.

Culinary International CEO Robert Sabahat will lead the company’s transition to Ruiz Foods.

“We have enjoyed a long and fruitful partnership with Ruiz Foods as a co-manufacturer for some of their most important products,” said Sabahat.

The acquisition appears to signal Ruiz Foods’ recovery from the pandemic, supply chain issues and inflation.

Antonelli said he company experienced the impacts of the pandemic and related supply chain disruptions “all throughout 2021 and most of 2022.”

“Those supply chain disruptions continued in the form of difficult-to-access raw materials or packaging supplies, or some capital equipment in terms of delays,” said Antonelli. “It is getting better, but inflation is the other part that kicked in during that same time.

“I think we’ve responded well,” said Antonelli, who expects the company to “return to normalcy” next year.

Ruiz Foods, whose products are under the El Monterey brand, announced the introduction of beef mini tacos at a trade show in Las Vegas last week.

“You’ll begin to see them at many food service locations and convenience stores,” said Antonelli. “We’re optimistic that they’ll perform well.”

Antonelli said Ruiz Foods products, like burritos and chimichangas remain convenient for consumers because of their taste, easy to heat, and cost.

“The consumer is looking for the best value that they can realize for their shopping dollar,” he said. “And Ruiz Foods continues to be a very good value across our product portfolio when compared to other choices.”