Fresh Del Monte Acquires Majority Stake in Avolio, an Avocado Oil Producer, to Further Its Commitment to Specialty Ingredients

Rhea-AI Summary

Fresh Del Monte Produce (NYSE: FDP) has acquired a majority stake in Avolio, Uganda's leading supplier of bulk crude and edible avocado oil. This strategic acquisition aligns with Fresh Del Monte's expansion into high-value specialty ingredients and biomass division.

The deal enables Fresh Del Monte to convert unsellable avocados into premium avocado oil, reducing food waste while supporting sustainability initiatives. Avolio's extraction technology will be scaled to process 140 metric tons of avocados daily.

The avocado oil industry, currently valued at $1.2 billion with a CAGR of 8-10%, presents significant growth opportunities. Fresh Del Monte plans to expand operations through increased production capacity and new facilities to meet rising global demand.

Positive

• Entry into high-margin avocado oil market valued at $1.2B with 8-10% CAGR
• Significant processing capacity of 140 metric tons of avocados daily
• Creates new revenue stream from previously unsellable avocados
• Vertical integration enhancing supply chain efficiency

Negative

• Initial capital investment required for acquisition and scaling operations
• Integration costs and risks in new market segment
• Dependency on avocado supply and price fluctuations

Insights

Financial Analyst

Fresh Del Monte's acquisition of a majority stake in Avolio represents a strategic diversification into higher-margin specialty ingredients, effectively transforming what would typically be unsellable avocados into valuable avocado oil products. This vertical integration expands FDP's revenue streams while enhancing its sustainability profile.

The avocado oil market, valued at $1.2 billion with projected 8-10% CAGR according to Fortune Business Insights, offers FDP an attractive growth avenue beyond its traditional produce business, which typically operates on thinner margins. Avolio's technology, capable of processing 140 metric tons daily, provides immediate production capability that FDP plans to scale further.

This acquisition aligns perfectly with FDP's recently established biomass and specialty ingredients division, indicating a deliberate strategic shift toward higher-value products derived from agricultural byproducts. By extracting additional value from its supply chain, FDP is positioning itself in premium market segments while simultaneously reducing waste—creating both environmental and economic advantages.

The transaction advances FDP's circular economy initiatives and potentially opens doors to similar value-extraction opportunities across its diverse produce portfolio. While financial terms weren't disclosed, this represents a sensible step in FDP's evolution from a pure produce company toward a more diversified food ingredients player with improved margin potential.

Sustainability Expert

This acquisition demonstrates FDP's substantive commitment to the circular economy by transforming what would typically be considered waste—avocados unsuitable for whole sale—into premium avocado oil. The environmental benefits are twofold: significant reduction in food waste and creation of value from otherwise discarded resources.

Avolio's extraction capabilities will enable FDP to process substantial volumes of previously underutilized agricultural output, representing genuine operational sustainability rather than mere corporate messaging. The vertical integration also potentially reduces transportation emissions by processing waste at or near production sites.

Beyond environmental considerations, this move reflects growing market recognition that sustainability initiatives can drive genuine business value. By positioning waste conversion as a profit center rather than a cost center, FDP is aligning environmental and financial incentives—a crucial evolution in corporate sustainability practices.

The strategic focus on their "biomass and specialty ingredients" division indicates FDP is systematically building capabilities to extract value throughout their agricultural supply chain. With avocado oil serving as their entry point, the company appears to be developing a scalable framework for identifying and monetizing additional byproduct streams across their extensive agricultural operations, potentially creating multiplicative sustainability impacts over time.

Acquisition advances company’s strategy to turn agricultural byproducts into high-value, sustainable ingredients

CORAL GABLES, Fla.--(BUSINESS WIRE)-- Fresh Del Monte Produce Inc., (NYSE: FDP) one of the world’s leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, today announces its acquisition of Avolio, Uganda's leading supplier of bulk crude and edible avocado oil. As part of this deal, the company will acquire a majority stake in Avolio, in line with its initiative to expand into high-value specialty ingredients.

The acquisition of Avolio allows Fresh Del Monte to convert avocados into premium avocado oil, driving commercial growth within a key area of the company’s long-term strategy: Specialty Ingredients and Innovation. Avocados are one of the few fruits from which oil can be extracted from the pulp. Avolio leverages this to create value from fruit that cannot be sold whole — reducing food waste and supporting Fresh Del Monte’s commitment to sustainability and the circular economy.

“Acquiring Avolio is a strategic step aligned with our long-term vision to extract greater value across our supply chain while advancing our commitment to sustainability,” said Mohammad Abu-Ghazaleh, Chairman and CEO of Fresh Del Monte. “It complements our newest business division — biomass and specialty ingredients — through which we are transforming agricultural byproducts into high-impact solutions that enhance soil health, support human wellness, and create new applications for a circular economy. These efforts not only reinforce our environmental stewardship, but also position us to compete in higher-margin categories that drive profitable growth and long-term shareholder value.”

The combination of Avolio’s extraction technology — which will be scaled to process 140 metric tons of avocados per day — with Fresh Del Monte’s extensive supply chain expertise positions the two companies to lead the market in delivering high-quality, sustainable avocado oil solutions.

The avocado oil industry is poised for growth — valued at approximately $1.2 billion and growing at a CAGR of 8% to 10%, according to Fortune Business Insights. To further capitalize on this growing industry, Fresh Del Monte plans to expand into other locations through increased production capacity and the development of new facilities to meet the increasing global demand.

ABOUT FRESH DEL MONTE

Fresh Del Monte Produce Inc. is one of the world’s leading vertically integrated producers, marketers, and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa, and the Middle East. Fresh Del Monte Produce Inc. markets its products worldwide under the DEL MONTE® brand (under license from Del Monte Foods, Inc.), a symbol of product innovation, quality, freshness, and reliability for over 135 years. The company also markets its products under the MANN® brand and other related trademarks. Fresh Del Monte Produce Inc. is not affiliated with certain other Del Monte companies around the world, including Del Monte Foods, Inc., the U.S. subsidiary of Del Monte Pacific Limited, Del Monte Canada, or Del Monte Asia Pte. Ltd. Fresh Del Monte Produce Inc. is the first global marketer of fruits and vegetables to commit to the “Science Based Targets” initiative. In 2022, 2023, and 2024, Fresh Del Monte Produce was ranked as one of “America’s Most Trusted Companies” by Newsweek based on an independent survey rating companies on three different touchpoints, including customer trust, investor trust, and employee trust. The company was also named a Humankind 100 Company for two consecutive years by Humankind Investments, which recognizes companies that substantially impact areas such as access to food and clean water, healthcare, and digital services. Fresh Del Monte has also been awarded the SEAL Business Sustainability Awards four times in the last five years (2021, 2023, 2024, and 2025). Fresh Del Monte Produce Inc. is traded on the NYSE under the symbol FDP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250326306619/en/

Media Contacts:

Havas Formula

freshdelmonte@havasformula.com

Claudia Pou

Vice President, Global Head of Corporate Communications

communications@freshdelmonte.com

Source: Fresh Del Monte Produce Inc.

FAQ

What is the current market value of the avocado oil industry that FDP is entering?

The avocado oil industry is valued at approximately $1.2 billion, with a growth rate (CAGR) of 8% to 10%.

How many metric tons of avocados will FDP's Avolio process daily?

Avolio's extraction technology will be scaled to process 140 metric tons of avocados per day.

How does Fresh Del Monte's Avolio acquisition support sustainability?

The acquisition enables FDP to convert unsellable avocados into premium oil, reducing food waste and supporting circular economy initiatives.

What are FDP's expansion plans in the avocado oil industry?

FDP plans to expand through increased production capacity and development of new facilities to meet growing global demand.