Ziyad Brothers Acquires Indo-European Foods to Expand Ethnic Food Market Footprint
In a significant development within the ethnic food industry, Chicago-based Ziyad Brothers Importing, a portfolio company of Peak Rock Capital, has acquired Indo-European Foods (IEF) for an undisclosed amount. The transaction unites two of the most prominent players in the import and distribution of food products from the eastern Mediterranean and Middle East, enhancing their collective market presence across the United States.
Two Industry Leaders with Shared Heritage
Both Ziyad Brothers and IEF have rich histories dating back to 1966, and this shared longevity underscores their deep-rooted expertise in the ethnic food market. IEF, headquartered in Commerce, California, specializes in importing and distributing products such as spreads, dips, and pickles under the Zeergut brand, houmous and chickpeas under Al Wadi, and biscuits and cookies from Hellema. The company supplies over 1,000 independent ethnic grocers, mainly in the western US, as well as national chains across 45 states.
Similarly, Ziyad Brothers, based in Chicago, has cultivated an expansive product portfolio featuring brands like Wild Garden (packet rice and chermoula marinade), Sultan (olive oil), and Zalatimo Sweets (sweet pastries). With more than 800 SKUs, Ziyad has facilities strategically located in Illinois, New Jersey, and California to support nationwide operations.
Complementary Strengths and Strategic Vision
The acquisition, facilitated by investment bank Brown Gibbons Lang & Company (BGL), is poised to create a powerhouse in the ethnic food market. BGL emphasized that the merger would allow the two companies to leverage their complementary brand portfolios and geographic footprints to offer an expanded assortment of products to customers.
In a statement, BGL noted, “The partnership is designed to also help IEF rapidly expand its national presence throughout key growth markets in the South and Midwest.” By aligning their strengths, Ziyad and IEF aim to tap into underserved regions, bolstering their collective distribution networks and enhancing their reach among ethnic grocers and mainstream retailers.
Peak Rock’s Growing Ethnic Food Portfolio
The acquisition of IEF is the latest in a series of strategic moves by Peak Rock Capital, a Texas-based private equity firm that acquired Ziyad Brothers in 2022. Under Peak Rock’s guidance, Ziyad Brothers has continued to build on its legacy, which began as a small bakery more than five decades ago. The acquisition of IEF is expected to further solidify Peak Rock’s position in the growing ethnic food market, enabling the firm to capitalize on the increasing demand for Mediterranean and Middle Eastern cuisines in the US.
Expanded Capabilities and Product Offerings
By joining forces, Ziyad Brothers and IEF will be better equipped to meet the evolving needs of consumers. The combined entity will offer an even broader range of high-quality products, including pantry staples, ready-to-eat meals, and specialty items that cater to diverse tastes. With complementary facilities in key states, the partnership is also expected to enhance operational efficiency, enabling faster distribution and improved service for retailers.
Industry Implications
The acquisition highlights a growing trend in the ethnic food industry, where consolidation is becoming a key strategy for growth. As consumer interest in global cuisines continues to rise, companies like Ziyad Brothers and IEF are well-positioned to lead the charge by offering authentic, high-quality products that resonate with diverse audiences.
Looking Ahead
With the completion of this acquisition, Ziyad Brothers and IEF are set to embark on a new chapter of growth and innovation. Their combined expertise, resources, and market reach will not only strengthen their position in the ethnic food sector but also create opportunities to introduce new products and penetrate untapped markets.
As the ethnic food industry evolves, this strategic partnership between two heritage brands demonstrates the power of collaboration in driving success and meeting the dynamic needs of consumers across the United States.