SUGAR LAND, TEXAS — Imperial Sugar Co. said its Mexican joint venture, Comercializadora Santos Imperial, S. De R.L. de C.V. (C.S.I.), has entered into a sugar sales and marketing agreement with Grupo La Margarita, a division of Mexico City-based Empresas Machado.

Under the terms of the agreement, C.S.I. will market up to 130,000 tons of sugar during 2009 throughout Mexico and the United States on behalf of Machado’s four sugar mills. While the agreement will extend through the end of calendar 2009, both C.S.I. and Machado will have the option to renew the agreement.

According to Imperial Sugar, the addition of the Machado production is expected to boost combined sales and marketing volumes of sugar for C.S.I. to approximately 460,000 tons of sugar through year-end 2009.

"We welcome the opportunity to provide sales and marketing services to Empresas Machado, a highly regarded sugar processor," said John C. Sheptor, president and chief executive officer of Imperial Sugar. "Our presence in Mexico has grown considerably since we formed the C.S.I. partnership in late 2007 with an increasing customer list that now includes major beverage, confection, dairy and baking companies. Our strategy to expand our cross-border opportunities by leveraging the strengths of both Imperial and Ingenios Santos to enhance profits is progressing nicely."

C.S.I. is an equally owned, joint venture that was formed by Imperial Sugar and Ingenios Santos, S.A. de C.V., to market Santos’ production in Mexico and to facilitate cross-border sugar trade under liberalized North American Free Trade Agreement provisions.