Deal advances Del Monte’s strategy of turning agricultural by-products into high-value, sustainable ingredients
Fresh Del Monte Produce has acquired a majority stake in Uganda-based avocado oil supplier Avolio as part of its strategy to venture into “high-value specialty ingredients”. The financial terms of the deal remain undisclosed.
In a statement, Fresh Del Monte said it would link its “extensive” supply chain with Avolio’s extraction technology – set to be scaled up for daily avocado processing of 140 tonnes. Its aim is to become a market leader in high-quality, sustainable avocado oil solutions.
According to a report by Fortune Business Insights, the avocado oil industry is worth around US$1.2bn and growing at a compound annual growth rate (CAGR) of 8-10 per cent.
Del Monte said it is aiming to capitalise on this expanding market by increasing production capacity and establishing new facilities.
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.
“Creating a circular economy and repurposing residues from our products has been a key aspect of my vision for Fresh Del Monte over the past year,” he said. “Last summer, we opened a biofertiliser plant in Kenya, created a new biomass and specialty ingredients division, and created strategic partnerships that furthered this vision.
“This latest acquisition will allow Fresh Del Monte to convert avocados that cannot be sold whole into avocado oil, reducing food waste and driving business growth.
“It is another crucial part of the wider specialty ingredient and innovation initiative at Fresh Del Monte that is working to transform agricultural byproducts into high-impact solutions.”
