Fresh Del Monte expands into avocado oil with Avolio acquisition

UGANDA – Fresh Del Monte Produce Inc. has acquired a majority stake in Avolio, Uganda’s leading supplier of bulk crude and edible avocado oil.

This strategic move strengthens Fresh Del Monte’s specialty ingredients division and enhances its sustainability efforts by transforming agricultural byproducts into high-value solutions.

The acquisition allows Fresh Del Monte to process avocados into premium avocado oil, expanding its commercial reach in this fast-growing market.

Avolio’s model ensures that fruit unsuitable for whole-fruit sales is repurposed, reducing food waste and reinforcing Fresh Del Monte’s commitment to sustainability and a circular economy.

“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.

“This complements our biomass and specialty ingredients division, where we are converting agricultural byproducts into innovative solutions that enhance soil health, support human wellness, and contribute to the circular economy.”

Avolio’s advanced processing technology, with a capacity of 140 metric tons of avocados per day, will be further scaled using Fresh Del Monte’s expertise in supply chain management.

This collaboration ensures greater efficiency while maintaining high-quality production standards for sustainable avocado oil.

Capitalizing on a growing market

The global avocado oil market is experiencing rapid growth, with an estimated value of US$1.2 billion and an annual expansion rate of 8% to 10%, according to Fortune Business Insights.

To meet increasing demand, Fresh Del Monte plans to expand production capacity and explore opportunities in other regions.

This acquisition also positions Fresh Del Monte among leading players in Africa’s growing avocado oil industry. Countries like Kenya and South Africa have emerged as key producers, with companies such as Olivado and Westfalia Fruit pioneering innovative extraction technologies and sustainability initiatives.

By joining this movement, Fresh Del Monte enhances Africa’s role in supplying high-quality avocado oil to global markets.

Strengthening specialty ingredients and financial stability

The deal emphasizes Fresh Del Monte’s focus on expanding its Specialty Ingredients and Innovation division.

Recently, the company appointed Deema Anani as Chief Commercial Officer for Specialty Ingredients to drive commercial growth and oversee initiatives like the Biomass program.

Launched in 2024, this program is dedicated to converting agricultural byproducts into sustainable solutions, further advancing the company’s vision of a circular economy.

Fresh Del Monte’s broader strategic growth is reflected in its recent financial performance. The company reported a net income of US$142.2 million for the fiscal year ending December 27, 2024, driven by strong performance in fresh and value-added products such as pineapples, avocados, and fresh-cut fruit.

While the banana segment faced challenges, higher selling prices in key categories contributed to overall stability. These results reveal the company’s ability to adapt and innovate, reinforcing its position in the specialty ingredients market.

By acquiring Avolio, Fresh Del Monte not only strengthens its portfolio but also reinforces its sustainability strategy, positioning itself for long-term growth in the specialty ingredients sector.

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