Del Monte's fresh, shelf-stable products unite under one brand as B&G Foods buys broth, stock business
Fresh Del Monte Produce Inc. has officially acquired select Del Monte Foods Corp. assets through a court-supervised Section 363 bankruptcy sale, in a transaction valued at about $285 million. The move unites Del Monte's fresh and shelf-stable products under one owner for the first time in nearly 40 years.
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"Bringing these businesses together allows us to move forward with a unified strategy that strengthens the brand across fresh and packaged categories while creating new opportunities for growth, innovation and global reach," Fresh Del Monte chairman and CEO Mohammad Abu-Ghazaleh said. "In many ways, this moment reflects the enduring trust and global recognition the Del Monte brand has earned over generations and marks the beginning of an exciting new chapter for the brand."
The deal doesn't include Del Monte's broth and stock business, which B&G Foods Inc. said it has officially acquired in a deal worth about $110 million. B&G Foods' acquisition includes the College Inn and Kitchen Basics brands, and is consistent with the company's strategy of acquiring and revitalizing heritage shelf-stable grocery brands to strengthen its presence in the centre store.
In uniting its brand under one owner, Fresh Del Monte's strategy is focused on strengthening its brand identity, expanding consumer reach, finding new growth avenues, accelerating innovation and enhancing operational efficiency, the company said. The united company will include Del Monte and S&W packaged vegetable brands, Del Monte and Contadina packaged tomato brands, and the Del Monte packaged refrigerated fruit brand.
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The company added that customers and retailers should not expect any immediate changes to products, packaging or distribution.
Del Monte's strategy is reflective of the wider canned vegetables category, which is projected to grow at a compound annual growth rate of more than 4% through 2032, Global Market Insights reported.
