Del Monte Pacific, Fresh Del Monte Produce form JV in retail, refrigerated grocery products
A major joint initiative is the introduction of Del Monte branded retail outlets, featuring an assortment of nutritious foods and beverages.
Del Monte Pacific Ltd., Philippines, and Fresh Del Monte Produce Inc., Coral Gables, Fla., formed a series of new joint ventures between the two companies that will result in expanded refrigerated offerings sold across all distribution and sales channels, as well as a new retail food and beverage concept modeled after the Fresh Del Monte Produce business in the Middle East. These joint ventures will initially focus on the U.S. market with the potential for expansion into other territories. This will also greatly increase the scale of the Del Monte brand.
“We are pleased that we have resolved our differences and put to rest the financial uncertainty that can arise from prolonged litigation,” says Rolando Gapud, chairman of the Board of Del Monte Pacific. “We look forward to combining the resources of Del Monte Pacific, our U.S. subsidiary Del Monte Foods and Fresh Del Monte Produce, and focusing our joint efforts on exciting new business opportunities that will provide consumers with more premium quality, healthy products.”
“This partnership offers tremendous opportunities for both companies to innovate on a much broader and deeper scale than either company can accomplish individually,” says Mohammad Abu-Ghazaleh, chairman of the board and CEO of Fresh Del Monte Produce. “Each company brings a high level of knowledge, experience and commitment that comes from developing and building the iconic, trusted Del Monte brand. We also share similar visions for creating products and experiences that will meet the evolving needs of today’s consumer.”
A major joint initiative is the introduction of Del Monte branded retail outlets, featuring an assortment of nutritious foods and beverages. The companies are also collaborating on several product innovations, including a line of chilled juices, new varieties of prepared refrigerated fruit snacks and guacamole and avocado products.
The collaboration offers the opportunity for each partner to share expertise and optimize economies of scale in product development, operations, sourcing, supply chain, marketing and distribution. The companies also agreed to a long-term mutual supply agreement to accelerate the expansion of Del Monte product sales in various markets around the world.