Cal-Maine Foods has entered a strategic partnership with fellow U.S. company Crepini to establish a new venture focused on prepared foods and egg products. Headquartered in Mississippi, Cal-Maine has announced that it has made a significant investment in Crepini to initiate operations under the name Crepini Foods, based in Hopewell Junction, New York.
In this collaboration, Cal-Maine will hold a controlling 51% stake in Crepini Foods, contributing $6.8 million. This funding will be used to acquire new equipment and support operational capital. As part of the deal, Crepini will transfer its existing assets and operations into the new entity, securing a 49% interest in the venture.
Founded in 2007, Crepini already operates a factory in Hopewell Junction, distributing its products across the United States and Mexico. The company specializes in egg wraps, filled omelettes, protein pancakes, and crepes, marketed under its own brand and the Pancheesi label. Its kosher offerings are notably low in carbs, calories, and gluten.
Sherman Miller, president and CEO of Cal-Maine, expressed his enthusiasm: “We are pleased to announce our strategic investment in Crepini, which aligns with our growth strategy to enhance our product portfolio and focus on value-added products and other egg product opportunities. We have a unique opportunity to leverage the established Crepini brand of quality products and extend our market reach to major retailers across the country.”
This partnership presents an exciting opportunity not only for expanding product lines but also for tapping into evolving consumer preferences. As the food and drink business increasingly leans towards nutritious, plant-based, and specialty products, this venture complements Cal-Maine’s existing hard-cooked egg production at its Meadowcreek facility in West Virginia, serving both retail and foodservice markets.
Crepini markets its products online and through approximately 3,500 retail outlets across the U.S. and Mexico. CEO Paula Rimer Shkolnik stated, “This partnership will allow us to make our products available to more national and international customers and continue to provide innovations in the egg specialty products category. The Crepini team is looking forward to expanding our brand and offerings.”
This collaboration marks the second strategic move by Nasdaq-listed Cal-Maine in just two months. In July, the company announced the acquisition of “substantially” all assets of local counterpart ISE America for around $110 million. This acquisition included shell egg production capacity for approximately 4.7 million laying hens and 4,000 acres of land.
In its financial results for the year ending June 1, Cal-Maine reported a 26% drop in revenue to $2.3 billion, attributed to lower egg prices. Operating income fell from $967.7 million to $312.4 million, and net income decreased from $758 million to $277.9 million. Miller commented on the results, stating, “We are proud of our performance in fiscal 2024, as we continued to execute our growth strategy in a challenging environment as well as respond to new market opportunities.”
Looking forward to fiscal 2025, he anticipates strong demand for shell eggs, as consumers seek affordable protein options. Miller emphasized, “We will continue to focus on expanding our production capacity for additional specialty and cage-free eggs that meet current consumer demand trends. Importantly, we have the financial strength to fund our internal expansion projects and consider acquisitions that complement our operations and support our growth initiatives.”
This partnership with Crepini is expected to enhance Cal-Maine’s presence and align with current trends in the food and beverage industry, particularly the focus on innovative egg products that resonate with modern consumers.
