Fresh Del Monte Produce Inc. says it has acquired a majority stake in Avolio, a Ugandan supplier of bulk crude and edible avocado oil.
The vertically integrated producer, marketer and distributor of fresh and fresh-cut fruit and vegetables says the deal aligns Avolio with its initiative to expand into high-value specialty ingredients. Adding Avolio allows the company to convert avocados into premium avocado oil, driving commercial growth within a key area of its long-term strategy of specialty ingredients and innovation.
Fresh Del Monte says Fortune Business Insights data shows the avocado oil industry, valued at approximately $1.2 billion, is expected to grow at a CAGR of 8% to 10%.
Avolio extracts oil from the pulp to create value from fruit that cannot be sold whole — reducing food waste and supporting Fresh Del Monte’s commitment to sustainability and the circular economy. Fresh Del Monte says it will scale Avolio’s extraction technology to process 140 metric tons of avocados daily and that it will expand production into other locations to meet increasing global demand.
“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,” Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh said in a news release. “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. These efforts not only reinforce our environmental stewardship, but also position us to compete in higher-margin categories that drive profitable growth and long-term shareholder value.”
