Monday, February 9, 2009

Monterey Gourmet Foods and Aidells Sausage Sign a Deal

Monterey Gourmet Foods of Salinas announced it entered a multi-year licensing agreement with Aidells Sausage Company Inc. to use the Casual Gourmet brand on protein products in exchange for licensing fees.

Under the agreement, effective Monday, Monterey will conduct tests on sample shipments to test specified quality standards and retain the rights to the Casual Gourmet brand for non-protein products such as spreads and dips. Moreover, Monterey will no longer produce stock-keeping units under Casual Gourmet.

"Our Casual Gourmet sausages have been a popular item," Eric C. Eddings, president and CEO of Monterey Gourmet Foods, said in a statement. "However, the increasing production costs at our volume level have resulted in losses for years. We are excited we — along with Aidells Sausage — were able to construct an innovative solution."

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