Recent Del Monte Produce has acquired the vast majority of Uganda-based avocado oil provider Avolio as a part of the US group’s technique to enterprise into “high-value specialty substances”.
The monetary phrases of the deal stay undisclosed.
In a press release, Recent Del Monte mentioned yesterday (26 March) it might hyperlink its “in depth” provide chain with Avolio’s extraction expertise – set to be scaled up for each day avocado processing of 140 metric tonnes.
Collectively, the businesses would “lead” the market with “high-quality, sustainable avocado oil options”, Recent Del Monte mentioned.
The Florida-based recent produce big additionally cited a Fortune Enterprise Insights report, which mentioned the avocado oil business, valued at roughly $1.2bn, is increasing at a compound annual progress fee (CAGR) of 8% to 10%.
The corporate mentioned it’s aiming to capitalise on this increasing market by growing manufacturing capability and establishing new services.
Recent Del Monte chairman and CEO Mohammad Abu-Ghazaleh known as the deal a “strategic step” aligned with the corporate’s imaginative and prescient to “extract higher worth” throughout the provision chain.
“These efforts not solely reinforce our environmental stewardship but in addition place us to compete in higher-margin classes that drive worthwhile progress and long-term shareholder worth,” he mentioned.
A vertically built-in producer, marketer, and distributor of recent and fresh-cut fruit and greens, Recent Del Monte Produce additionally operates within the ready meals sector throughout Europe, Africa, and the Center East.
In its 2024 fiscal 12 months, the corporate reported web gross sales of $4.28bn, down from $4.32bn in 2023.
The corporate attributed the decline to decrease gross sales quantity and per-unit promoting costs in its banana phase, in addition to alternate fee fluctuations.
Nevertheless, increased web gross sales in its recent and value-added merchandise phase, together with decreased ocean freight prices, contributed to a rise in gross revenue, which rose to $357.9m in 2024 from $350.7m within the prior 12 months.
