Fruit and vegetable company Fresh Del Monte Produce Inc. has announced its acquisition of Avolio, Uganda's leading supplier of bulk crude and edible avocado oil.
As part of the deal, Del Monte will acquire a majority stake in Avolio, which company officials said advances its efforts to expand into "high-value specialty ingredients." Officials added that because Avolio creates value from fruit that cannot be sold whole, the deal would help reduce food waste and bolster its commitment to "sustainability and the circular economy."
The combination of Avolio’s extraction technology — which will be scaled to process 140 metric tons of avocados per day — with Fresh Del Monte’s supply chain expertise positions the companies to lead the market in high-quality, sustainable avocado oil solutions, the companies said.
“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,” said Mohammad Abu-Ghazaleh, chairman and CEO of Fresh Del Monte. “It complements our newest business division — biomass and specialty ingredients — through which we are transforming agricultural byproducts into high-impact solutions that enhance soil health, support human wellness, and create new applications for a circular economy.”
Del Monte added that the $1.2 billion avocado oil industry is poised to grow at a CAGR of 8% to 10%, according to Fortune Business Insights.
