Del Monte Pacific Limited and Fresh del Monte Produce announce new joint ventures in retail and refrigerated grocery products
Companies’ settlement of all litigation facilitates new collaboration and product innovation
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 Stock 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 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 highquality, 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 longstanding 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 and 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 the 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.”
Amajor joint 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, Del Monte Pacific Limited and Fresh Del Monte Produce Inc. 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.
Conference Call and Webcast Details
Del Monte Pacific and Fresh Del Monte will host a joint conference call at 9:30 p.m. Eastern Time, today, June 27, 2017, and at 9:30 a.m. Singapore/Manila Time, today, June 28, 2017, which will be open to the public, to discuss the new joint ventures. The conference call dial-in numbers are (844) 884-9949 for USA callers and +1 661 378 9659 for international callers. The conference ID number for the call is 44486658. Please begin dialing in at least 10 minutes before the scheduled start time.
The call will also be webcast live and can be accessed via a link on the companies’ websites at http://delmontepacific.com, http://delmontefoods.com and http://ir.freshdelmonte.com. Webcast participants can only listen in and will not be able to ask questions. The call will be available for rebroadcast on the companies’ websites approximately two hours after the conclusion of the call.
Frequently asked questions (FAQ’s) about these joint ventures can be accessed on the companies’ websites.