Del Monte Pacific, Fresh Del Monte settle dispute

DEL MONTE Pacific Co. Ltd. has partnered with US-listed Fresh Del Monte Produce, Inc. after the two firms settled their long-running licensing dispute.

In a disclosure to the stock exchange on Wednesday, the dual-listed fruit canner said the joint ventures will focus on expanding its refrigerated offerings sold across all distribution and sales channels and introducing a new retail food and beverage concept modeled after the Fresh Del Monte business in the Middle East.

A major joint initiative is the establishment 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 partnership will leverage on the two firms’ expertise and optimize economies of scale in product development, operations, sourcing, supply chain, marketing and distribution, Del Monte Pacific said.

These new initiatives will initially focus on the United States with the potential for expansion into other territories.

Both firms have also agreed to a long-term mutual supply agreement to accelerate the expansion of Del Monte-branded product sales in markets around the world.

The joint ventures were sealed in light of the full and final settlement of all active litigation between Del Monte Pacific and Fresh Del Monte, which was spun off in 1989. The long-standing litigation was about licensing rights and product distribution in various territories.