GF Group, one of Europe's largest fresh produce companies and a major player in the logistics arena, has acquired 9 per cent of the shares in organics specialist Canova Srl, a subsidiary of Italian cooperative Gruppo Apofruit and the driving force behind Almaverde Bio, Italy's leading brand for organic fruit and vegetables.
The €1.2m deal, which has been undertaken by GF Group subsidiary Fruttital Distribuzione, will see the development of a major new strategy to promote and distribute Italian organic fruit and vegetables, with the ultimate aim of making Canova the main supplier of organics to retail companies across Europe.
As part of the agreement, Canova is set to take a majority share in Vivobio di Firenze, another organics company based in Tuscany and jointly owned by GF Group and the Maestrelli family.
Based in Emilia-Romagna, northern Italy, Canova marketed 23,500 tonnes of fresh produce last year for a total sales value of €42m, up 5 per cent on the previous year's figure. Vivobio, meanwhile, achieved a turnover of €4.5m in 2008.
Following Fruttital's share investment, the company has targeted sales in excess of €50m and aims to become the leading organic fruit and vegetable supplier in Europe.
'This deal has been done in order to push forward Canova's international development and to build awareness of the Almaverde Bio brand among European consumers,' explained Renzo Piraccini, general director of Gruppo Apofruit. 'We can achieve this objective thanks in part to GF Group, which will provide us with a wealth of knowledge and experience already acquired in the European market.'
Mr Piraccini said the agreement could open the way to other similar deals with organics companies in other parts of Europe. 'This partnership represents the start of a development process which is open to further partnerships and alliances,' he continued. 'In the current complex economic and financial situation, we are presenting ourselves as a solid and attractive partner for operators in the sector who share our strategies for promoting and selling organic produce in Europe.'
Antonio Orsero, president of GF Group, welcomed the deal. 'We have been working with Gruppo Apofruit on a commercial level for some time and with this partnership we hope to enter the organics market through a main entrance, in this case Canova, which is already a leader in the organics segment and responsible for a strong and established brand in Almaverde Bio.'
According to Mr Orsero, the new arrangement will also tie in well with GF Group's production and import operations. 'Our entry into the organics sector is also a strategic move for our production projects, in particular for products sourced from Argentina and Costa Rica like bananas, pears and apples,' said.
Apofruit Italia comprises 4,300 members, 11 facilities and six distribution centres across Italy, handling a total of 250,000 tonnes of produce every year. The company's consolidated turnover stands at €230m, with net profit of around €60m. During the past three years, the group has invested €24.6m in new facilities and technology.
GF Group is active in the areas of fruit production and exports via its companies in Argentina, Chile, Central America, Africa, Spain and Portugal, as well as the fresh fruit and vegetable import business through a network of distribution centres around the Mediterranean basin – in particular in Italy, Spain, France, Portugal and Greece.
With a consolidated turnover of €1.25bn and more than 2,350 employees, GF Group is heavily involved in port terminal logistics in Italy, France and Spain, as well as ocean and land transport operations. The group also has commercial ventures in the services and real estate sectors.
