Fresh Del Monte Produce Inc. recently acquired Avolio. As part of this deal, the company will acquire a majority stake in Avolio, which is in line with its initiative to expand into specialty ingredients.

The acquisition of Avolio allows Fresh Del Monte to convert avocados into avocado oil, driving commercial growth within an area of the company’s long-term strategy: specialty ingredients and innovation. Avocados are one of the few fruits from which oil can be extracted from the pulp. Avolio leverages this to create value from fruit that cannot be sold whole — reducing food waste and supporting Fresh Del Monte’s commitment to sustainability and the 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,” says Mohammad Abu-Ghazaleh, chair and CEO of Fresh Del Monte. “It complements our newest business division — biomass and specialty ingredients — through which we are transforming agricultural byproducts into high-impact solutions that enhance soil health, support human wellness and create new applications for a circular economy. These efforts not only reinforce our environmental stewardship, but also position us to compete in higher-margin categories that drive profitable growth and long-term shareholder value.”

The combination of Avolio’s extraction technology, which will be scaled to process 140 metric tons of avocados per day, with Fresh Del Monte’s supply chain expertise positions the two companies to lead the market in delivering sustainable avocado oil solutions.

The avocado oil industry is poised for growth — valued at approximately $1.2 billion and growing at a CAGR of 8% to 10%, according to Fortune Business Insights. To capitalize on this growing industry, Fresh Del Monte plans to expand into other locations through increased production capacity and the development of new facilities to meet the increasing global demand.