Fresh Del Monte Produce (FDP) Stephens 26th Annual Investment Conference | NASH2024 summary

Industry overview and business segments

• Operates in a highly competitive global fresh produce industry, serving over 80 countries with fresh and value-added products, beverages, and snacks.

• Vertically integrated with 98,000 acres under production, 30 distribution centers, 20 fresh-cut facilities, 12 vessels, and a large trucking fleet.

• Business divided into three segments: fresh and value-added (fastest growing, higher margin), bananas (core for volume and logistics), and other products/services (trucking and cargo shipping).

Growth strategy and drivers

• Focus on expanding the fresh and value-added segment, especially innovative pineapple varieties and fresh-cut fruit.

• Fresh-cut vegetables targeted for growth after consolidating four facilities into one, improving efficiency.

• Avocado business expanding sourcing beyond Mexico to Peru, Colombia, and Guatemala, with plans to grow in Europe and Asia.

Challenges and risk management

• Faces risks from FX, fuel, weather, and geopolitical events; uses hedging and diversified sourcing to mitigate.

• Investing in irrigation and exploring new production regions to address climate change and water scarcity.

• Global footprint allows agile response to disruptions like hurricanes, conflicts, and shifting markets.