Fresh Del Monte’s Mann Packing Sells Fresh Leaf Farms to First Leaf Farms, a New Partnership between Costa Family and The Nunes Family

Rhea-AI Summary

Fresh Del Monte Produce (NYSE: FDP) announced the sale of its Fresh Leaf Farms brand and operations through its vegetable division Mann Packing to First Leaf Farms, a new partnership between the Costa and Nunes families. The sale aligns with Fresh Del Monte's three-pronged strategy for its vegetable division, focusing on operational efficiency, product innovation, and non-core asset divestment. Mann Packing will continue prioritizing its core vegetable line and signature innovations while utilizing First Leaf Farms' logistics network through the Yuma season. The Costa family will manage production and operations, while The Nunes Company will oversee sales and marketing for First Leaf Farms.

Positive

• Strategic divestment of non-core assets to improve operational efficiency
• Maintained logistics network collaboration through Yuma season ensuring operational continuity
• Costa family will continue growing leafy greens for Mann Packing

Negative

• Reduction in company's operational scope through asset sale

Insights

Financial Analyst

The sale of Fresh Leaf Farms represents a strategic divestment aligned with Fresh Del Monte's three-pronged efficiency strategy. This move allows Mann Packing to focus on core vegetable products and signature innovations like Broccolini® while streamlining operations. The transaction's structure includes a beneficial logistics arrangement through the Yuma season and continued growing partnership with the Costa family, suggesting minimal operational disruption.

While financial terms weren't disclosed, this divestment should improve operational efficiency and potentially boost margins by eliminating non-core assets. The continued collaboration between all parties through logistics sharing and growing agreements indicates a well-structured deal that maintains valuable business relationships while optimizing the company's asset portfolio.

Market Research Analyst

The strategic repositioning in the vegetable sector demonstrates Fresh Del Monte's commitment to operational excellence and product innovation. The partnership between Costa and Nunes families brings together significant industry expertise, with Costa's farming innovation and Nunes' marketing prowess through their Foxy® brands. This consolidation could reshape competitive dynamics in the leafy greens market.

The deal's structure preserves important supply chain relationships while allowing Mann Packing to concentrate resources on high-value products. This focused approach, combined with streamlined operations, positions the company to better respond to evolving consumer preferences and market demands in the premium vegetable segment.

Strategic move allows Mann Packing to focus on operational efficiency and product innovation while strengthening Costa and Nunes Families’ leadership in leafy greens

CORAL GABLES, Fla.--(BUSINESS WIRE)-- Fresh Del Monte Produce Inc. (NYSE: FDP), through its vegetable division Mann Packing, announced the sale of its Fresh Leaf Farms brand and operations to First Leaf Farms—a new partnership between the Costa and Nunes families, both prominent leaders in the Salinas Valley produce industry. This transaction aligns with a shared commitment to drive innovation, enhance customer offerings, and strengthen leadership in the fresh produce sector.

For Mann Packing, the sale of Fresh Leaf Farms represents a key step in Fresh Del Monte’s strategic direction for its vegetable division. After conducting a comprehensive review and defining a clear path forward, the company is implementing a three-pronged strategy focused on increasing operational efficiency, elevating its product offerings, and divesting non-core assets, which includes the sale of Fresh Leaf Farms. Mann Packing will continue prioritizing its core vegetable line along with signature innovations, such as Broccolini^®, Stringless Sugar Snap Peas and Better Leaf ^® lettuce clam line while exploring new, innovative product offerings. By concentrating on these growth drivers and streamlining supply chains, Fresh Del Monte and Mann Packing aim to boost long-term profitability, strengthen business and customer relationships, and deliver innovative solutions to meet consumer needs.

“We are pleased with the path forward for Mann Packing. Our strategy not only sharpens our focus on future growth and operational excellence but also ensures that Fresh Leaf Farms continues to thrive under the leadership of the Costa and Nunes families,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO. “As Fresh Del Monte’s vegetable division and with innovation as its driving force, Mann Packing remains committed to delivering high-quality, fresh products that meet the evolving needs of our customers and consumers.”

The acquisition of Fresh Leaf Farms by First Leaf Farms further enhances the Costa and Nunes families’ leadership in the leafy greens sector, leveraging their combined expertise and long-standing history. As part of the acquisition, a seamless customer transition was a top priority, with both companies identifying strategic synergies. Notably, First Leaf Farms will utilize Mann Packing’s robust logistics network through the Yuma season to ensure uninterrupted service and operational efficiency, and the Costa family’s operations will continue to grow leafy greens for Mann Packing. Looking ahead, the companies intend to maintain a collaborative partnership, exploring further opportunities for growth.

With over 65 years of farming experience in the Salinas Valley, the Costa family is renowned for its innovation and premium leafy greens, which have long been a key supply source for Mann Packing. Now in its fourth generation, the Nunes family, known for its Foxy^® and Foxy Organic^® brands, has a long-standing legacy in the Salinas Valley, offering a diverse range of conventional and organic fresh vegetables.

The Costa family will manage production and operations for First Leaf Farms, while The Nunes Company, Inc. will oversee all sales and marketing.

“With our long history in the Salinas Valley and 40-plus-year relationship with the Nunes family, known for their marketing expertise and reputation for integrity and quality, this acquisition is a natural fit,” says Mike Costa, partner in the Costa family’s operations. “We have always valued our relationship with Mann Packing and Del Monte and thank them for this opportunity. We look forward to strengthening this relationship by leveraging both current and future opportunities to drive continued success.”

“For more than a generation, the Nunes and Costa families have worked side by side—the Costa family, known for its innovative varieties, superior land base, and integrity, and the Nunes family, with similar values and expertise in marketing and sales. This acquisition allows us to build on that shared history, combining our strengths to drive continued growth and innovation in the leafy greens sector,” said Tom Nunes V, President of The Nunes Company.

This transition highlights the collective strengths of all companies involved and underscores Fresh Del Monte’s commitment to optimizing its vegetable division while enhancing its business and customer value.

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 Corporation II 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. Additionally, Newsweek recognized Fresh Del Monte Produce as one of the “World’s Most Trustworthy Companies” in 2024, spotlighting the brand’s success in building investor, consumer, and employee trust on a global scale. Fresh Del Monte Produce was also named a Humankind 100 Company by Humankind Investments in 2024, 2023 and 2022, which recognizes companies that substantially impact areas such as access to food and clean water, healthcare, and digital services. 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/20241029138715/en/

Media Contact:

Claudia Pou

Vice President, Global Head of Corporate Communications

communications@freshdelmonte.com

Source: Fresh Del Monte Produce Inc.

FAQ

What did Fresh Del Monte (FDP) sell to First Leaf Farms?

Fresh Del Monte sold its Fresh Leaf Farms brand and operations through its Mann Packing division to First Leaf Farms, a partnership between the Costa and Nunes families.

How will the Fresh Leaf Farms sale affect Fresh Del Monte's (FDP) operations?

The sale allows Mann Packing to focus on core vegetable lines, increase operational efficiency, and enhance product innovation while maintaining logistics collaboration through the Yuma season.

What is Fresh Del Monte's (FDP) strategy for Mann Packing after the sale?

Fresh Del Monte is implementing a three-pronged strategy focusing on increasing operational efficiency, elevating product offerings, and divesting non-core assets.