In an industrial corner of Garden Grove lies what Kazumi Kuniyasu calls the largest tofu plant in America.
His House Foods America Corp., a unit of Japan’s House Foods Corp., produces more than 100,000 containers of tofu a day. About 140 workers, predominantly Hispanic, produce, package and ship the company’s colorful, square tubs of Hinoichi brand tofu to supermarkets such as Ralphs, Albertson’s and Vons. The sprawling plant is an industrial showcase of modern stainless-steel kettles, conveyor belts and packaging gear. Kuniyasu says his facility, at 128,700 square feet, tops a 120,000-square-foot East Coast plant operated by rival Vitasoy USA Inc. Last year, House Foods America did $17 million in sales, a 15% in crease from 1999, according to Kuniyasu, the company’s business administration manager. House Foods has staked out a natural market among Asian Americans, for whom the soybean product is a staple. Vegetarians and health-conscious consumers also are big buyers. Along with traditional Asian preparations such as stir-fry, the versatile ingredient is used in pizza, tostadas, chili, smoothies and even desserts. House Foods is looking to expand tofu’s appeal. Along with the company’s mainstay offerings, consumers now can choose from new spicier varieties,chili and veggie or herb and garlic,which are aimed at piquing the interest of everyday shoppers. Tofu dessert items with lychee, tangerine and mango flavors also are available. Still, House Foods officials concede they have a tough sell. Many Americans have trouble getting over what marketing manager Toshifumi Nomura calls “tofu-phobia.” “Non-Asians need time to get used to the texture,” he said. But House Food officials are betting on wider acceptance of their products. In May, the company added two new production lines, for a total of five. The expansion more than doubled the plant’s production capacity. “The five lines are capable of manufacturing 220,000 packages a day,” Kuniyasu said. The Garden Grove factory opened in 1997, replacing an old facility in downtown Los Angeles that was set up in 1981. At the time, the move to Garden Grove helped House Foods double production. The company faces a handful of Asian rivals with big ambitions for the U.S. tofu market, which was estimated at $238 million last year, according to Peter Golbitz of Bar Harbor, Maine-based consultant Soyatech Inc. Among them is San Francisco-based Vitasoy USA, a unit of Hong Kong’s Vitasoy International Holding, which claims about half of tofu supermarket sales with its Azumaya and Nasoya brands, according to company officials. Other big producers include Japan’s Morinaga Nutritional Foods Inc. and its Mori-Nu brand, which is made in Oregon. There’s also South Gate-based Pulmuone U.S.A., a unit of South Korea’s Pulmuone Co. Kuniyasu said he welcomes the competition. “Soybean products are still new and foreign to many people in the U.S.,” he said. “We can grow together.” Southern California is the biggest center of soybean-product production, according to William Shurtleff, president of the Soyfoods Center in Lafayette, Calif., an industry group. As more non-Asians partake of what many studies proclaim to be a healthful food, most tofu producers have doubled their production in the past few years, Shurtleff said. Last year, tofu sales grew at an estimated 15% from 1998, according to Soyatech. House Foods is looking to win over consumers in other ways, too. The company operates a toll-free number for recipes and tofu information. It also issues discount coupons and makes a blitz of free recipe books available on supermarket aisles. “We believe everybody wants to eat delicious, healthy, cheap and easy-to-cook food, regardless of his ethnic background,” Nomura said. n
