Develey Mustard & Condiments Corp., a subsidiary of Germany’s renowned Develey Senf & Feinkost (Develey), has made a significant move by selling its production facility located in the United States to Newly Weds Foods.
While the financial specifics of this transaction remain undisclosed, it is clear that this decision aligns with Develey’s strategic objectives. With the divestment of the Dyersburg, Tennessee plant, the company aims to “strategically realign its business model in the US” and enhance its focus on sales management and brand development.
Importantly, Develey indicated that this facility’s sale is connected to a manufacturing agreement with Newly Weds Foods. The partnership ensures that Develey will “remain actively involved in production through a close partnership with Newly Weds Foods as a co-producer.”
Michael Durach, the chairman of the board for Develey Mustard and Condiments Corp., emphasized that this collaboration “lays the foundation for an even more focused, growth-oriented business model in the US market.” He elaborated that this alliance will allow both firms to leverage each other’s production expertise and infrastructure. Deviating from the production side allows Develey to concentrate on its “strengths in brand development, expansion of our private-label business, sales, and customer relations.”
As a result of this acquisition, the operational aspects of Develey Mustard & Condiments Corp. will remain unchanged. The company will continue to service its existing retail and co-packing clients without interruption, according to their official communication.
Furthermore, Develey, the owner of popular brands such as Löwensenf and Bautz’ner, confirmed that all current employees of Develey Mustard & Condiments Corp. will transition to Newly Weds Foods.
The Dyersburg facility is set to be integrated into Newly Weds Foods’ expansive production network, with plans to commence the manufacture of its proprietary products from the site as early as 2026.
Newly Weds Foods articulated its ambition in a separate statement, asserting that this acquisition will “further enhance” its capabilities in producing liquids. Additionally, the company plans to expand its packaging options to include PC cups, sachets, and bag-in-box pouches.
Headquartered in Chicago and supported by venture capital firm Redwood Holdings, Newly Weds Foods specializes in producing seasonings, sauces, and essential ingredients for the foodservice sector and food manufacturers. The company operates 17 plants across North America and 13 additional facilities located in the UK, China, India, Poland, Australia, New Zealand, Thailand, and the Philippines. With the addition of the Dyersburg plant, Newly Weds Foods now operates a total of 31 facilities.
Brian Johnson, the president and CEO of Newly Weds Foods, stated enthusiastically, “The integration of the Dyersburg facility reinforces our commitment to expanding our presence in the dynamic sauce segment.” He explained that sauces are a “perfect complement” to their existing offerings of coatings, seasonings, and functional ingredients. This allows Newly Weds Foods to provide a comprehensive innovation solution for their clients’ products.
In addition, Newly Weds Foods noted that this “investment” will substantially “expand” the company’s capacity to supply sauces to the quick-service restaurant sector and the broader food ingredients market.
