Del Monte Pacific forges jv with 2 foreign firms

MANILA, Philippines - Food processing giant Del Monte Pacific Ltd. (DMPL) is partnering with two foreign firms to put up a facility equipped with the technology to further prolong shelf life of fruits and vegetables.

In a disclosure to the Philippine Stock Exchange, DMPL said it has entered into a joint venture with Spain-based Nice Fruit SL and Ferville Ltd to establish a facility in the Philippines that will utilize Nice Fruit’s patented technology.

DMPL said the technology, called Nice Frozen Dry, will allow fruits, vegetables and produce “to be picked at its optimal ripeness and frozen for up to three years while preserving its nutrients, structure, original properties and organoleptic characteristics.”

Nice Fruit will have the majority stake in the joint venture with 51 percent, while DMPL and Ferville will have 35 percent and 14 percent ownership, respectively.

“It is envisaged that the joint venture will process, market and sell the Nice Fruit frozen products to various countries in the world,” DMPL said.

Nice Fruit is a company that operates worldwide and is engaged in the production and distribution of fruits and vegetables.

With the introduction of the Nice Frozen Dry technology, Nice Fruit intends to improve food consumption habits as well as food stock management.

DMPL, meanwhile, completed the acquisition of US-based Del Monte Foods Inc. (DMFI) in February this year for nearly $1.7 billion, jumpstarting the transformation of the former into a global branded food and beverage firm.

The acquisition was funded by a $970 million debt and $705 million equity, of which DMPL financed by borrowing $630 million to add to the $75 million of its own money.