La Tortilla Factory gets financial boost from Flagship

02-Feb-2021 - Last updated on 02-Feb-2021 at 11:27 GMT

LTF produces a range of tortillas that answer consumer demands for better-for-you, organic and low carb products. Pic: La Tortilla Factory

Flagship Food Group has acquired a majority stake of the Californian family-owned specialty tortillas maker, giving it a major cash injection to take its growth to the next level.

La Tortilla Factory (LTF), which was started by the Tamayo family in 1977 to serve local Northern California restaurants and retailers, has grown into the largest and fastest-growing nationally-distributed tortilla brands in the US, with a product portfolio focused on the better-for-you, organic and low carb categories.

The manufacturer produces a wide range of corn and flour tortillas, along with speciality variants, such as Grain-Free Cauliflower Tortillas, Low Carb Tortillas, and Protein Tortillas. It also makes a variety of Mexican side dishes, sauces and snacks at its factory in Santa Rosa.

Following the transaction, Flagship will hold a controlling interest in La Tortilla Factory, adding the brand to its portfolio that consists of the 505 Southwestern, Lilly B’s, TJ Farm’s and Hatch Kitchen brands. Flagship – which is majority owned by Creo Capital Partners – also develops R&D-driven private label programmes in conjunction with leading food retailers, and provides food logistics, warehousing and freight management services. The company operates facilities in Idaho, California, Colorado, New Mexico, Minneapolis, and Indiana.

“As Flagship has continued to focus on premium-oriented food brands, and in particular in the Hispanic foods sector, it became clear to us that La Tortilla Factory was a perfect addition to our platform,” said Rob Holland, founder partner at Creo Capital Partners, which is the majority owner of Flagship.

“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.”

Flagship said the third generation Tamayo family members will continue to remain as valued partners, along with the company’s 300-strong workforce.

“As we embark on our 43^rd year in business, we are excited to have Flagship as partners,” added Sam Tamayo, chairman of LTF.

“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.”

Financial details of the deal were not disclosed. Cascadia Capital represented LTF, while Nixon Peabody advised Flagship.