A consortium that includes Watsonville, Calif.-based Driscoll’s says it has purchased the Costa Group, a leading Australian grower, packer and marketer of fresh fruit and vegetables.
Founded in the late 1800s by the Costa family in Geelong Victoria, Australia, Costa has a portfolio of premium-quality fresh produce, including the growing, marketing and supply of blueberries, glasshouse tomatoes, citrus, avocados, mushrooms and table grapes, according to the release. Its production and grower network spans every state of Australia, China, Morocco and southern Africa, while Costa products are sold into around the world, including countries throughout Europe, Asia and North America, the release said.
Costa is recognized as an industry leader in the development of genetics and new plant varieties, especially blueberries, the release said, adding that the company launched a record four new blueberry varieties in 2023 with a strong forward pipeline of products to fuel future growth.
Driscoll’s says the new ownership arrangement is a logical progression in its relationship with Costa, which began in 2010.The two companies equally own a joint venture in Australia, which is now a leading marketer of blueberries, raspberries, strawberries and blackberries in the country, according to the release. Driscoll’s says it also has an expansion program in the Americas using Costa blueberry varieties. In 2016, the companies formalized a joint venture that oversaw the two companies starting a berry production company in China.
“We welcome the Costa Group into the Driscoll’s family and look forward to deepening our relationship with even more deliberate collaboration across the globe,” Driscoll’s CEO Soren Bjorn said in the release. “This is one of the largest equity investments Driscoll’s has ever made, which speaks to the formidable partnership and considerable value we see in the Costa portfolio and the company’s long-term future and growth prospects.”
Driscoll’s says it will be working with Costa on specific projects to grow the global berry business and that their existing arrangements in China, Australia and the Americas will continue unaffected.
Driscoll’s is part of a North American-based consortium that is led by Paine Schwartz Partners and also includes British Columbia Investment Management Corp.
Over the past few decades, Paine Schwartz Partners has invested $5.7 billion in agriculture and the food supply chain, which includes a prior equity stake in Costa, according to the release. Its other investments include companies that grow premium fresh produce, such as Monterey Mushrooms, as well as agtech companies such as AgroFresh.
British Columbia Investment Management Corp. is a global institutional investor with $233 billion in gross assets under management, the release said. Its investment in agricultural assets includes an ownership stake in Viterra and mushroom and citrus businesses.
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