While Ventura Foods products might not always bear prominent branding on grocery shelves or restaurant menus, this company stands as a significant powerhouse in the food industry, playing a crucial role behind the scenes and notably benefiting agricultural producers.
Ventura Foods, headquartered in California, operates as a successful joint venture between CHS and Mitsui & Co. This partnership has propelled the company to become a leading manufacturer of packaged food products tailored for the expansive food industry. Its impressive client roster includes some of the most recognized names in the sector, serving 70 out of the top 100 restaurant chains across America, major grocery store outlets, and a wide array of food service providers.
The breadth of Ventura Foods’ product line is extensive and diverse. They are the source behind the irresistible popcorn popping and butter-flavored topping oils enjoyed in movie theaters and sports arenas nationwide. Restaurants rely on Ventura Foods’ high-quality frying oils to achieve perfectly crisp and delicious fried foods. Moreover, their flavorful sauces, dips, and dressings are essential components that enhance countless culinary creations. Ventura Foods also expertly manufactures a range of margarines, innovative butter blends, versatile spreads, essential mayonnaises, convenient pan sprays, and foundational culinary bases, all designed to empower chefs in crafting recipes that truly captivate and excite taste buds.
According to Chris Furman, President and CEO of Ventura Foods, their business model leans heavily towards customization rather than brand prominence. “We’re a custom company more than a branded one,” Furman explains. He further elaborates, “If you were to look in the back kitchen of many restaurants, you’d likely find that the fry oil or mayonnaise being used is manufactured by Ventura Foods.”
This strategic focus allows Ventura Foods to channel its resources and investments into key areas such as its cutting-edge innovation center, state-of-the-art manufacturing plants, dedicated employees, and the continuous refinement of its supply chain. Branding, while important, takes a secondary role in their overall strategy.
“That’s really where our greatest strengths are and that’s why we continue to do well by developing the foodservice side of our business,” Furman emphasizes.
This focused strategy has been instrumental in driving Ventura Foods’ substantial growth, which, in turn, significantly boosts the demand for oilseeds, particularly benefiting agricultural partners.
Soy oil, refined at facilities like the CHS soybean processing plant in Mankato, Minnesota, is a cornerstone ingredient in many Ventura Foods products, highlighting the symbiotic relationship between the two companies.
The Power of Partnership: Ventura Foods and CHS
The robust partnership between Ventura Foods and CHS has proven to be exceptionally fruitful. Over the past decade, Ventura Foods’ revenues have seen remarkable growth, increasing by approximately $1 billion to reach nearly $4 billion in the fiscal year 2023, which concluded on March 31, 2023. This impressive financial trajectory yields substantial benefits for CHS farmer-owners in numerous ways.
Ventura Foods stands as a reliable and significant purchaser of both soybean oil and canola oil. Annually, the company procures around 25% of the refined, bleached, and deodorized soy oil, 15% to 20% of the high-oleic soy oil, and about 15% of the canola oil produced by CHS facilities. This consistent demand is a cornerstone of stability for CHS and its farmer network.
Todd Biedenfeld, Director of Vegetable Oil and Sunflower Sales at CHS, highlights the strategic advantage of co-owning Ventura Foods, stating that it directly connects CHS farmer-owners to the broader food supply chain.
“CHS has had incredible returns from our soy and canola processing businesses over the last few years and Ventura Foods is a large contributor to that success,” Biedenfeld notes. He further explains the financial benefits for farmers, “Rewards to owners traditionally end when we ship out the refined oil and meal from our facilities. Owning 50% of Ventura Foods allows CHS to participate more completely in the supply chain and when Ventura Foods is profitable, we share in that success. Ultimately, it allows us to return more money to farmer-owners.”
Furman underscores the shared values between CHS and Mitsui as a key factor in the joint venture’s ongoing success. “The mutual respect and collaborative spirit are evident. I’ve had a front-row seat for 14 years, watching leaders of both companies work together to solve challenges,” he remarks, emphasizing the strength and longevity of this partnership.
Ventura Foods Frying Oil Production: Bottles of cooking oil ready for shipment at the Ontario, California plant, highlighting Ventura Foods' role in the food industry.
Soy Oil: The Core Ingredient for Ventura Foods
Edible oils are the foundational components of Ventura Foods’ extensive product portfolio. Annually, the company utilizes a staggering 2 billion pounds of edible oils, sourced from a diverse range of plants including soybeans, canola, palm, cottonseed, corn, peanuts, coconuts, olives, and others. Soy oil constitutes the largest portion, making up between 65% to 75% of the company’s total oil usage, according to Furman. Ventura Foods strategically sources its oil from CHS and other prominent global suppliers to ensure a consistent and reliable supply chain.
Ahmad Popal, Senior Vice President of Food Innovation and International at Ventura Foods, points out soy oil’s preeminence due to its availability, cost-effectiveness, and functional properties. He describes it as “an excellent carrier for texture and flavor,” making it ideal for a wide array of food applications.
Biedenfeld highlights Ventura Foods’ significance to CHS as their largest oil customer. CHS facilitates the delivery of these crucial oils via rail and truck from its refineries in Mankato and Hallock, Minnesota, to 11 Ventura Foods manufacturing plants strategically located across the nation. This logistical network ensures efficient and timely delivery of essential ingredients.
Ventura Foods: Company Overview and Brand Portfolio
Ventura Foods was established in 1996 through a strategic joint venture between CHS and Mitsui & Co., marking the integration of Wilsey Foods and Holsum Foods. This merger created a robust entity poised for significant impact in the food industry. For those seeking more in-depth information, the Ventura Foods website offers comprehensive details about the company and its operations.
Key Ventura Foods Locations:
- Brea, Calif. (Headquarters)
- Birmingham, Ala.
- Ontario, Calif.
- Port St. Lucie, Fla.
- Thorton, Ill.
- Opelousas, La.
- Albert Lea, Minn.
- St. Joseph, Mo.
- Portland, Ore.
- Salem, Ore.
- Chambersburg, Pa.
- Fort Worth, Texas
- Saginaw, Texas
- Waukesha, Wis.
- Edmonton, Alberta
- Toronto, Ontario
Select Ventura Foods Brand Portfolio:
- Hidden Valley (under license agreement with Hidden Valley Ranch)
- Classic Gourmet
- SunGlow
- Sauce Craft
- Chef’s Pride
- Grandioso
- LouAna
- Gold-n-Sweet
- Smart Balance
Furman emphasizes the operational autonomy granted to Ventura Foods by its parent companies. “The beautiful thing about the joint venture is the two owners allow Ventura Foods to operate with autonomy to make business decisions in the best interests of the company,” he states. He further notes the beneficial dynamic with Mitsui, “Mitsui encourages us to do business with CHS, assuming we’re making the right decisions based on market conditions,” highlighting the supportive and collaborative nature of the partnership.
Darin Johnson, a farmer from near Wells, Minnesota, illustrates the direct impact of Ventura Foods on agriculture. He sells approximately 100,000 bushels of soybeans annually to the CHS crush plant in Fairmont, Minnesota. The soy oil derived from these soybeans is further refined at the CHS soy processing facility in Mankato, and a portion is shipped to Ventura Foods, demonstrating a clear farm-to-food supply chain.
“Soy oil demand and value the past two years have been amazing. For farmers, it adds to our bottom line,” Johnson remarks. He also connects the broader market trends to farmer profitability, “We know renewable fuels feedstock demand adds nearly $1 per bushel to the price of soybeans and I think the food oil side of it adds just as much, if not more.” Johnson anticipates an increase in soybean acres to meet the growing demand for oil, driven by both food and fuel sectors.
Adapting and Thriving in a Changing Landscape
The COVID-19 pandemic presented significant challenges for Ventura Foods, causing a sharp decline in sales as restaurants, schools, and other foodservice customers were forced to close their doors.
Furman explains how the pandemic reshaped consumer behaviors, leading to a surge in demand for food delivery and takeout options. Traditional dine-in restaurants had to rapidly adapt to survive, often needing to establish or expand their takeout capabilities.
Ventura Foods responded proactively, collaborating with restaurants on initiatives like The Great American Takeout campaign. “We adjusted to the changes with more packaging offerings geared toward takeout and delivery,” Furman explains. This included expanding their range of single-serving dips, dressings, sauces, and margarines to meet the evolving needs of the foodservice industry.
Prior to the pandemic, Ventura Foods had already been strategically working to broaden and diversify its customer base to ensure long-term stability and growth. Over a decade ago, all of Ventura Foods’ clients were based in the U.S., and a single customer accounted for over 25% of their total revenue. Today, their customer base spans across North America, Latin America, and Asia, significantly reducing reliance on any single market or client.
“Our company is stronger, more focused on growth and more balanced. We’re more diversified in our approach to the marketplace,” Furman concludes, highlighting the resilience and adaptability of Ventura Foods.
Looking ahead, Ventura Foods is committed to deepening its partnerships with customers, leveraging technology to enhance growth and improve the overall customer experience.
The Future of Soy Oil: Balancing Food and Fuel Demands
Furman anticipates increasing competition for soy oil, driven by the expanding renewable fuel industry, particularly renewable diesel and biodiesel, which rely heavily on soy oil as a primary feedstock. This competition between the food and fuel sectors for soy oil is expected to intensify in the coming years.
Despite concerns about heightened competition, Furman remains confident in Ventura Foods’ ability to secure the necessary soy oil supplies.
“We’re working with our major soybean oil suppliers to solidify our place in their portfolio,” he assures. He emphasizes Ventura Foods’ long-standing reliability as a consistent source of demand for soybean and canola crushers, stating, “We are a proven, time-tested source of demand soybean and canola crushers can rely on.”
Biedenfeld concurs that a significant shift in soy oil demand is underway due to the growth of renewable diesel. Currently, CHS allocates 80% of its soy oil to food companies and the remaining 20% to fuel and industrial applications.
“We assume our percentages [of soybean oil sales] will change in the future, but with our joint venture in Ventura Foods, CHS is dedicated to staying loyal to the food side of the market,” Biedenfeld affirms, reinforcing the commitment to the food industry even amidst evolving market dynamics.
To delve deeper into this topic and other related articles, readers are encouraged to explore the full Winter 2024 C magazine. Further information about CHS processing capabilities can be found at Learn more about CHS processing..
