Fresh produce giant Fresh Del Monte strikes deal to enter high-value specialty ingredients

Diving briefs:

• Fresh fruit and vegetables giant Fresh del Monte buys a majority stake in Aborioa major supplier of large crude and edible avocado oil in Uganda, private volume.
• The Florida company said the purchase fits with a long-term strategy to expand its specialized ingredients and innovation business. In this case, Avolio allows fresh Del Monte to convert avocados to premium avocado oil. Avocados are one of the few fruits that can extract oil from pulp.
• Purchases place fresh delmontes in the fast-growing avocado oil segment. The materials are expected to grow from $637 million the previous year to a $1.2 billion company by 2032. Fortune Business Insights.

Dive Insights:

Fresh del Monte is best known for its fresh ingredients on display in bananas, pineapples and other grocery stores. The company remains committed to its business, but recently created a biomass and specialist materials division that transforms agricultural by-products to boost the company’s growth, boosts soil health and supports human health.

“These efforts place us in competition in a higher margin category that not only strengthens environmental management, but also promotes profitable growth and long-term shareholder value,” Mohammad Abu Gazare, chairman and CEO of Fresh del Monte, said in a statement. “Acquiring Avolio is a strategic step consistent with our long-term vision of extracting greater value across the supply chain while moving forward with our commitment to sustainability.”

During fiscal year 2024, Fresh DelMonte’s net sales fell to $4.28 billion, compared to $4.32 billion a year ago. Decline in net sales This was mainly due to a negative impact of lower sales volumes and unit sales prices for bananas and fluctuations in exchange rates. Banana was responsible for about a third of the company’s net sales in 2024.

Avolio purchases not only improve the fresh Del Monte environmental footprint, but also provide faster channels to increase sales, but also help to diversify the company’s business even more and minimize disruption to other parts of the business.

Fresh Del Monte said Avolio’s extraction technology will be expanded to process 140 tons of avocado per day. Furthermore, the technology, coupled with Fresh Del Monte’s extensive supply chain expertise, “positions two companies to lead the market to deliver high-quality, sustainable avocado oil solutions.”