Fresh Del Monte Produce has acquired the majority of Uganda-based avocado oil supplier Avolio as part of the US group’s strategy to venture into “high-value specialty ingredients”.
The financial terms of the deal remain undisclosed.
Go deeper with GlobalData
In a statement, Fresh Del Monte said yesterday (26 March) it would link its “extensive” supply chain with Avolio’s extraction technology – set to be scaled up for daily avocado processing of 140 metric tonnes.
Together, the companies would “lead” the market with “high-quality, sustainable avocado oil solutions”, Fresh Del Monte said.
The Florida-based fresh produce giant also cited a Fortune Business Insights report, which said the avocado oil industry, valued at approximately $1.2bn, is expanding at a compound annual growth rate (CAGR) of 8% to 10%.
The company said it is aiming to capitalise on this expanding market by increasing production capacity and establishing new facilities.
Fresh Del Monte chairman and CEO Mohammad Abu-Ghazaleh called the deal a “strategic step” aligned with the company’s vision to “extract greater value” across the supply chain.
“These efforts not only reinforce our environmental stewardship but also position us to compete in higher-margin categories that drive profitable growth and long-term shareholder value,” he said.
A vertically integrated producer, marketer, and distributor of fresh and fresh-cut fruit and vegetables, Fresh Del Monte Produce also operates in the prepared food sector across Europe, Africa, and the Middle East.
In its 2024 fiscal year, the company reported net sales of $4.28bn, down from $4.32bn in 2023.
The company attributed the decline to lower sales volume and per-unit selling prices in its banana segment, as well as exchange rate fluctuations.
However, higher net sales in its fresh and value-added products segment, along with reduced ocean freight costs, contributed to an increase in gross profit, which rose to $357.9m in 2024 from $350.7m in the prior year.
