Valley Milk & Rizo Family Form Francisco Foods, Acquire Rizo-Lopez Assets
Valley Milk, LLC, a leading dairy ingredient producer based in California’s Central Valley, has announced a significant strategic move with the creation of a new company, Francisco Foods, LLC. This newly formed entity has acquired substantially all the assets of Rizo-Lopez Foods, Inc. through bankruptcy proceedings overseen by the U.S. Bankruptcy Court for the Eastern District of California. The transaction marks a pivotal moment for both organizations, signaling not only a financial restructuring but also a renewed commitment to preserving a well-known legacy in the Hispanic dairy market.
The formation of Francisco Foods represents a collaborative effort designed to carry forward decades of expertise, tradition, and customer loyalty. The company operates as a joint venture, with Valley Milk, LLC holding a majority ownership stake. At the same time, the founding Rizo family maintains a meaningful share in the business through Rilosa, LLC, an entity led by Edwin and Ivan Rizo. This structure ensures that while the business undergoes transformation, it retains continuity in leadership, values, and cultural identity.
Although Rizo-Lopez Foods will cease to exist as a legal entity, its legacy remains deeply embedded in the new organization. The transition to Francisco Foods is not simply a replacement, but rather an evolution—one that builds on the foundation established over more than three decades. The workforce, operational expertise, and long-standing customer relationships developed by Rizo-Lopez Foods will continue under the new banner, ensuring stability and familiarity for both employees and consumers.
Central to this transition is the continuation of the well-known Tío Francisco brand. Recognized nationwide for its high-quality Hispanic-style cheeses and cream products, the brand has earned a reputation for authenticity, craftsmanship, and consistency. With over 35 years of history, Tío Francisco has become synonymous with traditional flavors and trusted quality within the Hispanic community and beyond. Under Francisco Foods, the brand will not only continue production but is also expected to expand and innovate while staying true to its roots.
Leadership from Valley Milk emphasized that this partnership aligns closely with its long-standing mission to support the regional dairy industry and the Central Valley community. Damien Caton, CEO of Valley Milk, described the venture as a natural extension of the company’s values. He highlighted the importance of restoring access to beloved products for loyal consumers while strengthening the overall business model for long-term sustainability. By combining Valley Milk’s operational capabilities and supply chain strength with the Rizo family’s product expertise and brand heritage, the new company aims to deliver enhanced value across the market.
Mike de Jager, Chairman of the Valley Milk Board, echoed these sentiments, pointing to the shared vision that underpins the partnership. He noted that Valley Milk was founded on principles of excellence, collaboration, and community stewardship—principles that are clearly reflected in the investment in Francisco Foods. According to de Jager, the new entity represents more than just a business opportunity; it is a chance to generate positive economic and social impact throughout the region, from supporting local dairy farmers to creating stable employment opportunities.
For the Rizo family, the transition marks both an end and a new beginning. Edwin Rizo, co-founder of Rizo-Lopez Foods, emphasized that the essence of the brand—its focus on family, craftsmanship, and cultural connection—remains unchanged. He expressed confidence that the partnership with Valley Milk provides a strong foundation for rebuilding and growing the business. Rizo also underscored the importance of maintaining trust with customers and partners, many of whom have supported the brand for decades.
Francisco Foods plans to continue producing a comprehensive range of Hispanic-style dairy products, including cheeses and creams that have long been staples in households and foodservice operations across the United States. With enhanced resources and strategic backing, the company is well-positioned to improve production efficiency, strengthen quality assurance, and explore new market opportunities. The integration of Valley Milk’s advanced dairy processing capabilities is expected to play a key role in achieving these objectives.
The relaunch of the business under Francisco Foods signals resilience and adaptability in an industry that often faces economic and operational challenges. By preserving the strengths of the past while embracing new opportunities for growth, the company aims to set a new standard for excellence in the Hispanic dairy segment.
As Francisco Foods begins this new chapter, its message to customers is clear: the tradition continues, the quality remains, and the commitment to excellence is stronger than ever.
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