Del Monte Pacific and Fresh Del Monte Produce to enter new retail and product JVs
Del Monte Pacific (DMPL) and Fresh Del Monte Produce (FDP) are set to enter into a series of new retail and product joint ventures (JVs), in order to provide more premium-quality, healthy products to consumers.
The move follows after the companies resolved differences between them with the full and final settlement of all active litigation. The litigations between the companies reflected on licensing rights and product distribution in various territories around the world.
The partnership is expected to result in the expansion of refrigerated offerings sold across all distribution and sales channels, as well as the development of a new retail food and beverage concept.
The companies will initially focus on the US markets and enhance their business in other territories at a later stage.
The deal is expected to create a new platform for Del Monte brand to expand their healthy and convenient offering to its consumers.
Fresh Del Monte produce board chairman and CEO Mohammad Abu-Ghazaleh said: “This partnership offers tremendous opportunities for both companies to innovate on a much broader and deeper scale than either company can accomplish individually.
“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.”
As part of this JV, both companies have agreed to launch Del Monte branded retail outlets, which will offer a wide range of nutritious foods and beverage products in order to meet the consumer demand for healthier food options.
DMPL and FDP will also collaborate on the development of new products, including chilled juices, new varieties of prepared refrigerated fruit snacks, and guacamole and avocado products.
Apart from retail and new product ventures, both companies have agreed on a long-term mutual supply agreement to accelerate the expansion of Del Monte product sales in various markets around the world.
Image: Del Monte Pacific's chairman Rolando C. Gapud and Fresh Del Monte Produce's chairman and CEO Mohammad Abu-Ghazaleh. Photo: courtesy of Del Monte.