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Fresh Del Monte Announces Price Increases in Response to Inflationary Market
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary
Fresh Del Monte Produce Inc. (NYSE: FDP) is raising prices on bananas, pineapples, and fresh-cut fruit starting November 1, 2021, due to ongoing inflationary pressures and rising production costs. CEO Mohammad Abu-Ghazaleh stated that mitigating these costs has proven challenging, necessitating price increases to sustain supply and service levels. While responding to immediate cost challenges, the company remains committed to its long-term growth strategy, focusing on innovation, efficiency, and strengthening its market position through vertical integration.
Positive
Continued focus on long-term growth strategy emphasizing innovation and efficiency.
Vertical integration efforts aimed at boosting productivity.
Negative
Rising production and supply chain costs leading to price increases.
Inflationary pressures impacting overall business operations.
As Cost Pressures Across Supply Chain Show No Signs of Easing
MIAMI--(BUSINESS WIRE)--
Fresh Del Monte Produce Inc. (NYSE: FDP), one of the world’s largest leading vertically integrated producers, marketers, and distributors of high-quality, fresh produce, announced to customers it is raising prices on bananas (including organics and plantains), pineapples and fresh-cut fruit effective November 1, 2021. The move comes in response to unprecedented market conditions and inflationary pressures being felt across all industries, affecting Fresh Del Monte particularly as it relates to production and supply chain.
“Despite our efforts to mitigate these increasing costs within our supply chain, they are simply too great to absorb. The unparalleled costs have been persistent and show no signs of regulating,” said Mohammad Abu-Ghazaleh, Fresh Del Monte Chairman and Chief Executive Officer. “After thoughtful consideration, it is necessary to implement inflation-justified price increases in an effort to maintain our continuous supply and service levels. We understand that these pressures are not unique to our business and therefore are working collaboratively to mitigate these pressures – within our supply chain and with our business partner relationships.”
As the company makes the near-term decision to increase prices on its products, Fresh Del Monte is continuing to proactively work on its long-term growth strategy focused on innovation, efficiency, and further leveraging its vertical integration to boost productivity and further strengthen the company’s position.
Fresh Del Monte markets and distributes its products to retail stores, foodservice operators, wholesalers, and distributors.
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 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 is the first global marketer of fruits and vegetables to commit to the “Science Based Targets” initiative. Fresh Del Monte Produce is traded on the NYSE under the symbol FDP.
