CORAL GABLES/ SINGAPORE/ MANILA – 27 June 2017/ 28 June 2017 – Del Monte Pacific Limited (DMPL, dual listed on the Mainboards of the Singapore Exchange Securities Trading Limited and the Philippine Stocky Exchange, Bloomberg: DELM SP/ DMPL PM) and Fresh Del Monte Produce Inc. (NYSE: FDP) are pleased to announce a series of new joint ventures between the two companies that will result in expanded refrigerated offerings of sold across all distribution and sales channels, and a new retail food and beverage concept modeled after an already successful Fresh Del Monte Produce business in the Middle East. These joint ventures will initially focus on the U.S. market with the potential for expansion into other territories where the companies’ businesses complement each other. This will also greatly increase the scale of the Del Monte brand by expanding into more high-quality, healthy and convenient product options for consumers.
The joint ventures are facilitated by the full and final settlement of all active litigation between Del Monte Pacific Limited and its subsidiary Del Monte Foods Inc. on the one hand, and Fresh Del Monte Produce Inc., on the other hand, effective immediately. The long-standing litigation had centered on licensing rights and product distribution in various territories around the world.
“We are pleased that we have resolved our differences and put to rest the financial uncertainty that can arise from prolonged litigation,” said Rolando C. Gapud, Chairman of the Board of Del Monte Pacific Limited. “We look forward to combining the resources of Del Monte Pacific, our US subsidiary Del Monte Foods, and Fresh Del Monte Produce, and focusing our joint efforts on exciting new business opportunities that will provide consumers with more premium quality, healthy products.”
“This partnership offers tremendous opportunities for both companies to innovate on a much broader and deeper scale than either company can accomplish individually,” said Mohammad Abu-Ghazaleh, Chairman of the Board ad Chief Executive Officer of Fresh Del Monte Produce. “Each company brings a high level of knowledge, experience and commitment that comes from developing and building and building 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.”
A major initiative is the introduction of Del Monte branded retail outlets, featuring an assortment of nutritious foods and beverages to meet the increasing demands of consumers for healthier food options. The companies also announced that they are collaborating on several product innovations, including a line of chilled juices, new varieties of prepared refrigerated fruit snacks, and guacamole and avocado products.
The collaboration offers the opportunity for each partner to share expertise and optimize economies of scale in product development, operations, sourcing, supply chain, marketing and distribution.
In addition to retail and new product ventures, the companies have also agreed to a long-term mutual supply agreement to accelerate the expansion of Del Monte product sales in various markets around the world.
Photo above: Del Monte Pacific’s Chairman Rolando C. Gapud and Fresh Del Monte Produce’s Chairman and CEO Mohammad Abu-Ghazaleh (Photo courtesy of Business Wire)
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