Investments keep the world moving, and in this industry, they keep innovation going. Recently, La Tortilla Factory (LTF) announced that Denver-based Flagship Food Group (Flagship), owner of 505 Southwestern, has agreed to make an investment into LTF to support its future growth strategy. Flagship will become the majority stakeholder in the company while the third-generation Tamayo family members continue to remain as valued partners.
“We are excited and eager to embrace Flagship Food Group and its entire family of companies and brands as supporters of La Tortilla Factory’s strategic growth plan,” said Jeff Ahlers, CEO of LTF. “Their investment acumen and broader experience in the food industry, including their success with 505 Southwestern, will support and accelerate our strategy, especially given their success and enthusiasm within the Mexican food category.”
The Tamayo family started La Tortilla Factory in 1977 to serve local Northern California restaurants and retailers. Today, LTF is reportedly the largest nationally distributed tortilla brand whose product portfolio is focused on true better-for-you, organic, and low carb categories, according to the press release.
“As we embark on our 43rd year in business, we are excited to have Flagship Food Group as partners. It was very important to our family that a new partner shared our core values and were genuinely interested in our people, our brand, and our culture,” said Sam Tamayo, third-generation family member and Chairman of the Board for LTF. “We feel fortunate to have found a match with Flagship and CREO.”
Majority owned by CREO Capital Partners, Flagship is a diversified food company that sells a wide range of food products and services under the 505 Southwestern, Lilly B’s, Hatch Kitchen, TJ Farm’s, and other brands. Most of Flagship’s brands are rapidly expanding, having experienced double-digit growth in recent years.
505 Southwestern, made at Flagship’s manufacturing facility in Albuquerque, New Mexico, is one of the country’s largest jarred green chile brands and grew by nearly 50 percent in 2020.
“As Flagship has continued to focus on premium-oriented food brands, and in particular in the Southwestern foods sector, it became clear to us that La Tortilla Factory was a perfect addition to our platform. Being one of the leading brands in the better-for-you segment of the tortilla and Mexican food space, LTF further enhances our ability to execute on our growth strategy,” said Rob Holland, the Founding Partner at CREO Capital Partners.
This new partnership will build on the outstanding reputation that La Tortilla Factory has cultivated within the food industry and community since 1977. Its 300 employees will remain in place and focused on the company’s vision to be the innovative brand leader in premium Mexican food.
As noted in the release, the transaction closed on January 27, 2021, and the terms of the transaction are confidential. Cascadia Capital represented and advised La Tortilla Factory on this transaction. Nixon Peabody advised Flagship Food Group.
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