Profile: Fresh Del Monte Produce Inc (FDP)
11 Mar 2014
Fresh Del Monte Produce Inc. (Fresh Del Monte), incorporated on August 29, 1996, is a holding company. The Company is a producer, marketer and distributor of fruit and vegetables, as well as a producer and distributor of prepared fruit and vegetables, juices, beverages and snacks in Europe, Africa and the Middle East. The Company markets its products worldwide under the DEL MONTE brand. It sources its fresh produce products (bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries and kiwi) primarily from Central and South America, Africa, the Philippines, North America and Europe. The Company sources its prepared food products primarily from Africa, Europe, the Middle East and Asia. Its products are sourced from company-owned operations, through joint venture arrangements and through supply contracts with independent producers. It distributes its products in North America, Europe, Asia, the Middle East, Africa and South America.
The Company’s products are sourced from company-controlled farms and independent growers. During the fiscal year ended December 30, 2011 (fiscal 2011), it transported its produce to markets using its fleet of 12-owned and 12-chartered refrigerated vessels, and it operated four port facilities in the United States. The Company also operated 42 distribution centers, generally with cold storage and banana ripening facilities in its key markets worldwide, including the United States, the United Kingdom, Germany, Japan, South Korea, Hong Kong, Poland, the United Arab Emirates and Saudi Arabia. The Company also operates 15 fresh-cut facilities in the United States, the United Kingdom, Japan, the United Arab Emirates and Saudi Arabia, some of which are located within its distribution centers.
The Company markets and distributes its products to retail stores, food clubs, wholesalers, distributors and foodservice operators in more than 100 countries worldwide. The Company offers a variety of produce in a range of markets along with fresh-cut produce in selected markets and a prepared food product line that includes prepared fruit and vegetables, juices, beverages and snacks in Europe, Africa, the Middle East and countries formerly part of the Soviet Union. During fiscal 2011, 48% of the fresh produce it sold was grown on company-controlled farms and the remaining 52% was acquired through supply contracts with independent growers. The Company produces, sources, distributes and markets an array of produce worldwide, primarily under the DEL MONTE brand, as well as under other brands, such as UTC and Rosy. It also produces, distributes and markets prepared fruits and vegetables, juices, beverages and snacks under the DEL MONTE brand, as well as other brands, such as Fruit Express, Just Juice, Fruitini.
The Company’s banana sales in North America, Europe, Asia and the Middle East accounted for approximately 47%, 22%, 18% and 11% of its net sales of bananas during fiscal 2011, respectively. It produced approximately 40% of the banana volume it sold during fiscal 2011 on company-controlled farms, and it purchased the remainder from independent growers. The Company produces bananas on company-controlled farms in Costa Rica, Guatemala, Brazil, Cameroon and the Philippines and it purchases bananas from independent growers in Costa Rica, Ecuador, Colombia, Guatemala and the Philippines. Although its supply contracts are primarily long-term, it also makes purchases in the spot market, primarily in Ecuador.
Pineapples are grown in tropical and sub-tropical locations, including the Philippines, Costa Rica, Hawaii, Thailand, Malaysia, Brazil, Indonesia and various countries in Africa. Pineapple sales in North America, Europe, Asia and the Middle East accounted for 52%, 26%, 16% and 5%, respectively, of its net sales of pineapples during fiscal 2011. The principal production and procurement areas for its gold pineapples are Costa Rica and the Philippines.
The majority of fresh-cut produce is sold to consumers through retail and club store settings, as well as non-conventional settings, such as convenience stores, gas stations and airports. The Company’s fresh-cut fruit products include pineapples, melons, grapes, citrus, apples, mangos, kiwis and other fruit items. It also offers fresh-cut vegetables for prepared salads, such as coleslaw and potato salad. Its purchase contracts for both fruit and vegetables are typically short-term but vary by produce item. The Company’s fresh-cut products are sold in the United States, the United Kingdom, the Middle East and Japan.
Non-tropical fruit includes grapes, apples, pears, peaches, plums, nectarines, cherries, avocados, citrus and kiwis. Generally, non-tropical fruit grows on trees, bushes or vines that shed their leaves seasonally. Approximately 39% of its non-tropical fruit net sales are from grapes. Fresh grapes are also processed for the production of wine, raisins, juices and canned products. Approximately 21% of its non-tropical fruit net sales are from the sale of avocados. The Company sells a variety of non-tropical fruit. During fiscal 2011, non-tropical fruit sales in North America, Europe, the Middle East, Asia and South America accounted for approximately 54%, 7%, 21%, 12% and 6%, respectively, of its total net sales of non-tropical fruit. The Company obtains its supply of non-tropical fruit from company-owned farms in Chile and from independent growers in Chile, the United States, Mexico, Spain and New Zealand. In Chile, it purchases non-tropical fruit from independent growers and also produces a variety of non-tropical fruit on approximately 5,100 acres of company-owned or leased land. Its avocados are sourced principally from Mexico. In Mexico, the Company has its own sourcing operations.
The Company sells a variety of melons, including cantaloupe, honeydew, MAG melon, watermelon and specialty melons. Cantaloupes represented approximately 74% of its melon sales volume during fiscal 2011. The Company is a producer and distributor of melons from November to May in North American and European regions by sourcing melons from its company-controlled farms and independent growers in Central America, where production generally occurs during this period. Melon sales in North America and Europe accounted for 87% and 12%, respectively, of its net sales of melons during fiscal 2011. In terms of volume, it produced 92% of the melons it sold during fiscal 2011 on company-controlled farms and purchased the remainder from independent growers.
The Company sources its tomatoes mainly from the United States, Mexico, Canada, Guatemala and El Salvador. The Company has developed greenhouse tomato operations in Guatemala.
The Company distributes and markets a variety of vegetables, including potatoes, onions, bell peppers and cucumbers. It sources its vegetables from independent growers in North and Central America.
Other Fruit, Products and Services
The Company produces, distributes and markets a variety of other fruit, including strawberries, plantains and mangos, as well as various other varieties of fruit. It sources these other fruit items from company-controlled farms and independent growers in Costa Rica, Colombia, Guatemala and the United States.
The Company produces, distributes and markets prepared pineapple, peaches, fruit cocktail, pears, tomatoes, fruit juices and other fruit and vegetables. Its prepared pineapple products are primarily sourced from its facility in Kenya and are also sourced from independent producers in Asia. The Company’s deciduous prepared food products, which include peaches, fruit cocktail, pears and apricots are principally sourced from its facility in Greece and contract growers in South Africa. Its tomato products are sourced from independent producers in Europe and the Middle East. The Company also distributes and markets beverages, including juices and juice drinks, as well as various snacks. These products are sold primarily under the DEL MONTE label and under the buyers’ own label for retailers.
The Company also produces and markets industrial products that are composed of fruit that has been processed in its production facilities in the form of purees, pulps and concentrates for further processing (juice, yogurt, cake manufacture, pizza) and for sale to the foodservice industry worldwide. Its prepared food segment also includes its Jordanian food business. This business includes a poultry business, including poultry farms, feed mill, slaughterhouse and meat processing plant in Jordan. Its Jordanian poultry business is the provider of poultry products to retail stores and foodservice operators in that country. The meat processing operation provides meat products for the Jordanian market and to other Middle East and North African markets.
Fresh Del Monte Produce Inc
C/O DEL MONTE FRESH PRODUCE CO
12TH FLOOR, 241 SEVILLA AVENUE
CORAL GABLES FL 33134