Fresh Del Monte Produce Inc. has announced that it is increasing the prices of bananas, including organics and plantains, as well as pineapples and fresh-cut fruit, effective 1 November 2021.
The decision follows unprecedented market conditions and inflationary pressures that have affected Fresh Del Monte’s production and supply chain.
'Inflation-Justified Price Increases'
Mohammad Abu-Ghazaleh, Fresh Del Monte chairman and chief executive officer, commented, “Despite our efforts to mitigate these increasing costs within our supply chain, they are simply too great to absorb. The unparalleled costs have been persistent and show no signs of regulating.
“After thoughtful consideration, it is necessary to implement inflation-justified price increases in an effort to maintain our continuous supply and service levels. We understand that these pressures are not unique to our business and therefore are working collaboratively to mitigate these pressures – within our supply chain and with our business partner relationships.”
Long-Term Growth Strategy
As the company makes the near-term decision to increase prices on its products, it continues to proactively work on its long-term growth strategy focused on innovation, efficiency, and further leveraging its vertical integration to boost productivity and further strengthen its position.
Fresh Del Monte markets and distributes its products to retail stores, foodservice operators, wholesalers, and distributors.
In August, the company reported a 6% year-on-year growth in sales of fresh-cut fruits and vegetables in the second quarter as the loosening of restrictions on social gatherings helped boost performance.
Earlier in June, Fresh Del Monte Produce announced a partnership with I Squared Capital to accelerate digitisation. The partners will share investment prospects, seek to co-invest in certain deals, and offer general support by sharing research and learnings in certain fields of technology, including the Internet of Things (IoT), energy storage, and vertical farming.