ZEGO Buys Processing Facility To Support ‘Values-aligned Brands’

Purity-tested, allergy-friendly oat brand ZEGO has acquired a gluten-free and organic grains processing plant, land and equipment from Montana Gluten Free Processors (MGFP) in addition to launching a new venture known as the Collaborative Integrated Value Chain (CIVC) LLC as it works to expand and strengthen U.S. supply chains for these ingredients.

CIVC’s work will also support values-aligned packaged food brands and regional and regenerative farmers growing premium rotational crops by supporting the commercialization for grains such as millet, buckwheat and quinoa.

“This acquisition is about more than infrastructure – it’s about building a caring food system. CIVC is designed to nurture a collaborative, values-based supply chain from farm gate to retail shelf,” said Colleen Kavanagh, founder and CEO of ZEGO and CIVC. “We’re here to help farmers thrive, brands grow, and consumers access food they can trust.”

The acquisition was supported by a 2024 USDA Organic Market Development Grant, which ZEGO secured in order to help modernize and update portions of the facility with new processing capabilities as well as greater quality control and traceability for certified organic gluten-free grains. The facility will also add equipment to clean, dehull and process ancient gluten-free grains.

ZEGO has now assumed full ownership of the Belgrade, Mont.-based facility as well as MGFP’s own brand and the facility’s existing customer accounts. The plant will continue to produce ZEGO and MGFP’s products and has been expanded to offer co-packing services for food companies seeking a corn-free and gluten-free production environment.

Kavanagh said she began working to vertically-integrate ZEGO to help the company hedge against unforeseen market chaos. By owning and operating the business’ “entire ecosystem” she said ZEGO is able to buffer itself a bit from those fluctuations. But that ecosystem isn’t just for the benefit of her own business. Kavanaugh aims to offer co-packing to other values-aligned brands to help.

“We have excess co-packing capacity on purpose because this facility really operates more like a cooperative but it is an LLC because it has to be nimble,” Kavanagh told Nosh in March. “It’s going to be operating at a healthy, break-even margin, specifically so that it can help these little brands succeed on shelf. If you’ve got your product-market fit, you can get on shelf; it’s getting off shelf [that is key], and that’s all about price. If my stuff cost the same as Quaker Oats I’d be selling all day long.”

The facility acquisition and updates, which Kavanagh told Nosh earlier this year have been in the works for two years, were temporarily in-flux after President Trump froze all federal grant funding upon his return to the White House in January. That funding has since been released, but Kavanagh is continuing to assess various ways to support small producers, including bulk packaging ordering to minimize the impact of import tariffs.