Fresh Del Monte Produce has finalized the sale of its Fresh Leaf Farms brand and operations to First Leaf Farms for an undisclosed amount. This move comes after the company conducted a comprehensive review of its vegetables division, known as Mann Packing.
In its announcement, Fresh Del Monte emphasized the need for the division to enhance efficiency, refine its product offerings, and divest from “non-core assets.” Earlier in February, the company had mentioned it was “exploring strategic alternatives” for Mann Packing.
Fresh Del Monte had acquired the California-based prepared vegetables and salads maker in 2018 for $361 million. Recently, the company reported a non-cash impairment of $131.2 million in its fiscal fourth quarter, attributed primarily to Mann Packing.
The divestiture of Fresh Leaf Farms represents a “key step” in the division’s “strategic direction,” according to Fresh Del Monte. CEO Mohammad Abu-Ghazaleh stated, “As Fresh Del Monte’s vegetable division and with innovation as its driving force, Mann Packing remains committed to delivering high-quality, fresh products that meet the evolving needs of our customers and consumers.”
While the financial details of the sale remain undisclosed, Fresh Del Monte assured us that Mann Packing will “continue prioritizing its core vegetable line along with signature innovations,” such as Broccolini, Stringless Sugar Snap Peas, and Better Leaf brands. This strategic focus aims to enhance profitability in a competitive food and beverage industry.
First Leaf Farms is formed through a partnership between the Costa and Nunes families from California’s Salinas Valley. The Costa family has over 65 years of experience in farming and previously supplied leafy greens to Mann Packing. Simultaneously, the Nunes family is recognized for its Foxy and Foxy Organic brands, providing both conventional and organic fresh vegetables.
Moving forward, First Leaf Farms will leverage Mann Packing’s logistics network throughout the Yuma season to ensure seamless service and operational efficiency. The Costa family will oversee the production and operations for First Leaf Farms, while sales and marketing efforts will be managed by The Nunes Company.
Mike Costa, operations partner for the Costa family, remarked that the acquisition is “a natural fit,” highlighting the “long history in the Salinas Valley and 40-plus-year relationship with the Nunes family.” This collaboration aims to pave the way for future growth while aligning with current food and drink consumer trends.
In conclusion, the acquisition marks a significant milestone in Fresh Del Monte’s strategic pivot within the food and drink business landscape, reflecting ongoing adjustments in the food and beverage industry trends.
