By Lynda Kiernan
Riverence Holdings announced it has agreed to acquire trout production giant Clear Springs Foods for an undisclosed amount. The deal now positions Riverence as the largest land-based producer of trout in the Americas.
The relatively high price of salmon has made rainbow trout a more economic alternative that still offers the same health benefits. A report issued in Q4 2019 by Fact.MR stated that global rainbow trout consumption was to reach 950,000 tons by the end of 2019, and forecasted a CAGR of approximately 5 percent for the coming decade to 2029. Over that time, rainbow trout are expected to see an economic opportunity of US$2 billion.
In its report, Fact.MR goes on to state that strategic partnerships and joint ventures in the rainbow trout space will likely be the primary channel for growth by local players in the space, who are also targeting gaining aquaculture operations located in key regions as key to their strategic growth.
Riverence and Clear Springs Foods are both based in Idaho, and Riverence also owns Riverence Brood in Washington State, and Riverence Farms, also located in Idaho. This deal now creates an entity that has full “egg to plate” control of its entire supply chain, from broodstock to distribution.
The Riverence portfolio now includes 14 farms, four brood stations, two processing facilities, a value-added processing facility, a waste recovery plant, and a feed mill, all of which are BAP certified. Shared resources also include a modern fleet of 12 over-the-road tractor trailer combos, giving the company nationwide market access.
“Clear Springs has a very mature trucking fleet and distribution program with national market reach, which means both Clear Springs and Riverence products will have greater nationwide availability, and precise, reliable cold-chain control,” Gabe Watkins, director of communications for Riverence, told SeafoodSource. “We also have a long list of newfound opportunities and improvements available to us, from genetics, to supply reliability, and much more.”
Certified Steward
In support of its mission to decrease pressure on wild fish populations through offering a high-quality, land-raised alternative, Riverence collaborates with action-oriented partners for the benefit of the environment, animal welfare, human health, and culinary excellence, according to the company website.
The company is a collaborator with Monterey Bay Aquarium’s Seafood Watch program, which has rated the company as a “Best Choice” green producer. It is also a Sustainable Seafood Partner of the James Beard Foundation, participating in annual sustainability and progress-focused industry discussion. Riverence’s fish are also recommended by Ocean Wise, a sustainable, ocean-friendly seafood choice, and is a partner with non-profit sustainable seafood consultancy FishWise.
“We believe in aquaculture and sustainable, land-based production of seafood,” says Rob Young, CEO, Riverence. “With this investment, we are deepening our commitment to doing what’s right in support of our communities, the fish we produce, and the natural resources we share. Together, we stand ready to redefine farm-raised fish and the future of American aquaculture.”
Each of the companies have varied customer bases across both retail and food service. The Magic Valley region of Idaho will continue to be the base for both companies, which together employ 450 people, and intend to maintain their existing brands and teams.
“Clear Springs’ 54 years of experience is “something [we] very much respect,” Watkins told SeafoodSource.
“They’ve endured the test of time, and have led the way for land-based trout production for decades, and I believe this is a watershed moment for American aquaculture. By combining the resources and accomplishments of these companies, along with the tenure of all team members, it’s clear that we’re about to enter a new era for local, sustainably-raised seafood.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.