Fresh Del Monte, a prominent fresh fruit and vegetable giant, has recently made a strategic move by acquiring a majority stake in Avolio, Uganda’s leading supplier of bulk crude and edible avocado oil. This acquisition, although the financial details remain undisclosed, aligns with Fresh Del Monte’s long-term strategy to expand its specialty ingredients and innovation business. Avolio’s expertise will enable Fresh Del Monte to convert avocados into premium avocado oil, tapping into the growing demand for this unique product.
The avocado oil segment is projected to become a $1.2 billion business by 2032, up from $637 million just a year ago, according to Fortune Business Insights. This acquisition places Fresh Del Monte in a lucrative and fast-growing market, positioning the company for future success in the avocado oil industry.
While Fresh Del Monte is widely recognized for its fresh produce offerings like bananas and pineapples, the company has recently diversified its business by establishing a biomass and specialty ingredients division. This division aims to leverage agricultural byproducts to drive growth, improve soil health, and promote human wellness. By acquiring Avolio, Fresh Del Monte is taking a strategic step towards enhancing its value chain, promoting sustainability, and exploring higher-margin categories.
Fresh Del Monte Chairman and CEO, Mohammad Abu-Ghazaleh, emphasized the company’s commitment to environmental stewardship and sustainability through this acquisition. He stated, “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.”
In its 2024 fiscal year, Fresh Del Monte reported a slight decrease in net sales to $4.28 billion, primarily attributed to lower sales volume and selling prices in bananas, as well as exchange rate fluctuations. Bananas accounted for a significant portion of the company’s overall sales in that year.
The purchase of Avolio not only enhances Fresh Del Monte’s environmental footprint and revenue streams but also diversifies its business portfolio and reduces the impact of disruptions in other operations. Avolio’s extraction technology, capable of processing 140 metric tons of avocados per day, coupled with Fresh Del Monte’s supply chain expertise, positions the companies as market leaders in delivering high-quality, sustainable avocado oil solutions.
Overall, Fresh Del Monte’s acquisition of Avolio represents a strategic move towards innovation, sustainability, and long-term growth in the specialty ingredients market. As the demand for premium avocado oil continues to rise, Fresh Del Monte is well-positioned to capitalize on this trend and solidify its presence in the industry.
