DMPL, Fresh Del Monte partner for new products

MANILA, Philippines -  Settling their long-standing dispute, Del Monte Pacific Ltd. (DMPL) and Fresh Del Monte Produce Inc. (FDP) have agreed to enter into a partnership to launch new products.

In a disclosure to the Philippine Stock Exchange yesterday, DMPL said the partnership involves the expansion of its refrigerated offerings sold across all distribution and sales channels, and a new retail food and beverage concept.

“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,” DMPL said.

This is in line with efforts to meet the increasing demands of consumers for healthier food options.

DMPL said the two companies are collaborating on several product innovations, including a new line of chilled juices, new varieties of prepared refrigerated fruit snacks, and guacamole and avocado products.

“These joint ventures will initially focus on the US market with the potential for expansion into other territories where the companies’ businesses complement each other,” DMPL said.

DMPL said the partnership would also increase the scale of the Del Monte brand by expanding into more high-quality, healthy and convenient product options for consumers.

The two companies have also agreed to a long-term mutual supply agreement to accelerate the expansion of Del Monte branded products in various markets around the world.

“The joint ventures are facilitated by the full and final settlement of all active litigation between Del Monte Pacific Ltd. and its subsidiary Del Monte Foods Inc. on the one hand, and Fresh Del Monte Produce Inc., on the other hand, effective immediately,” DMPL said.

The dispute between the two companies centered on licensing rights and product distribution in various territories around the world.

DMPL chairman Rolando Gapud said the joint venture would put to rest the financial uncertainty created by the prolonged litigation.

“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,” Gapud said.

For his part, Fresh Del Monte chairman and chief executive officer Mohammad Abu-Ghazaleh said the partnership offers tremendous opportunities for both companies to innovate on a much broader scale

“Each company brings a high level of knowledge, experience and commitment that comes from developing and building the iconic, trusted Del Monte brand,” Abu-Ghazaleh said.

DMPL is 67 percent owned by NutriAsia Pacific Ltd. and Bluebell Group Holdings Ltd.,

Fresh Del Monte is one of the world’s leading vertically integrated producers and distributors of high-quality fresh and fresh-cut fruit and vegetables.  It is also a leading producer and distributor of prepared food in Europe, Africa, the Middle East and the countries formerly part of the Soviet Union.