Del Monte Pacific andFresh Del Monte Produce have moved on from a long-running legal stoush to announce a series of new joint ventures.
A major initiative between the companies will be the launch of Del Montebranded retail outlets, which will sell an assortment of fresh food and beverages. The concept is modelled on an already successfulFresh Del Monte Producebusiness in theMiddle East.
The companies will also collaborate on several product innovations, including a line of chilled juices, new varieties of prepared refrigerated fruit snacks, and guacamole and avocado products.
These joint ventures will initially focus on the US market, with the potential for expansion into other territories where the companies’ businesses complement each other.
The move comes after the “full and final” settlement of all active litigation between the two firms. The well-publicised legal action surrounded licensing rights and product distribution in various territories.
“We are pleased that we have resolved our differences and put to rest the financial uncertainty that can arise from prolonged litigation,” saidRolando Gapud, chairman of Del Monte Pacific.
“We look forward to combining the resources ofDel Monte Pacific, our US subsidiaryDel Monte Foods, andFresh Del Monte Produce, and focusing our joint efforts on exciting new business opportunities that will provide consumers with more premium quality, healthy products.”
In addition to the new retail and product ventures, the companies have also agreed to a long-term mutual supply agreement to accelerate the expansion of Del Monteproduct sales in various markets around the world.
“This partnership offers tremendous opportunities for both companies to innovate on a much broader and deeper scale than either company can accomplish individually,” saidMohammad Abu-Ghazaleh, chairman and chief executive ofFresh Del Monte Produce.
“Each company brings a high level of knowledge, experience and commitment that comes from developing and building the iconic, trusted Del Montebrand. We also share similar visions for creating products and experiences that will meet the evolving needs of today’s consumer.”
