Key Takeaways:
- Fresh Del Monte is acquiring a majority stake in Avolio, Uganda’s top supplier of bulk crude and edible avocado oil, to expand its specialty ingredients and innovation business.
- This strategic move allows Fresh Del Monte to produce premium avocado oil from avocados, tapping into the growing market expected to reach $1.2 billion by 2032.
- While known for its fresh produce like bananas and pineapples, Fresh Del Monte is venturing into biomass and specialty ingredients to drive growth, enhance sustainability, and cater to higher-margin categories.
- Despite a slight dip in net sales for fiscal year 2024, Fresh Del Monte sees the Avolio acquisition as a way to improve its environmental impact, diversify its business, and strengthen its market position in sustainable avocado oil solutions.
Insightful Analysis:
Fresh Del Monte’s decision to invest in Avolio aligns with its long-term vision of extracting greater value from its supply chain while championing sustainability. This acquisition not only enhances the company’s environmental efforts but also opens up new revenue streams and minimizes operational risks.
With Avolio’s extraction technology capable of processing 140 metric tons of avocados daily, Fresh Del Monte aims to lead the market in delivering high-quality, sustainable avocado oil solutions. This strategic partnership leverages Fresh Del Monte’s supply chain expertise and Avolio’s innovative approach to meet the increasing demand for avocado oil.