November 9, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Berries have been hot! Considering the nutritional value of fresh berries, and their diverse range of applications from the bakery to beverages, it’s not surprising that they are one of the most rapidly growing fresh produce categories at retail stores in the world.

Macros are driving the fresh fruits segment to be expected by Statista to post revenue of about $63 billion in 2022, and to continue growing at a CAGR of 5.56 percent from 2022-2026. Within this time frame, the fresh fruit segment is forecast to experience volume growth of 1.4 percent in 2023, and to reach a volume of 281,256.8 million kilograms by 2026.

The potential awaiting in this category has been reflected in recent deal activity. In only the last month:

~ Sustainable food and agribusiness investor Arable Capital Partners expanded its footprint in the fresh fruit segment through a new partnership with BlazerWilkinsonGee (BWG).

~ Rose Hill Acquisition Corporation (Rose Hill) and Chile-based superfruit exporter Inversiones e Inmobilaria GHC Ltda (Prize) announced they entered into a definitive business combination agreement that entails Prize becoming a U.S. publicly traded company by listing on the Nasdaq at an initial enterprise value of about US$425 million – representing the first Chilean enterprise to initially list directly on a U.S. exchange.

And,

~ Paine Schwartz notified the ASX that it had increased its stake in Costa Group to 13.78 percent at an investment of nearly $161 million, and expressed its intentions to grow its holding to 15 percent and, if granted approval by the Foreign Investment Review Board (FIRB).

Now, Agroberries Limited, a world-leading vertically integrated producer, marketer, and distributor of berries that also controls a best-in-class portfolio of owned and proprietary berry genetics, is investing approximately €40 million (US$41.7 million)  to expand its growing operations in Morocco. 

In January of this year, Continental Grain Company made an undisclosed investment in the company as a way to increase its exposure to this promising category, stating in January that as a long-term partner, it will use its international network, its M&A resources, and its operational expertise to ensure Agroberries achieves its strategic and developmental goals.

At the time, Jorge Varela, co-founder and CEO, Agroberries, commented, “I’m excited about the possibilities arising from our partnership with Conti, and confident it will accelerate our global expansion plans, give our customers increased access to our novel proprietary varieties, and offer exciting professional development opportunities for our management team.”

Founded in 1996, with a headquarters in Chile and marketing companies in the U.S. and the Netherlands, Agroberries owns farms and packing facilities in both hemispheres connected to a strong network of strategic alliances with trusted global partners.

Through its business, the company supplies a broad retail customer base from a combination of its own global farming operations spanning 2,500 hectares and a vast collection of third-party growers across all berry categories.

The company’s growing operations in Morocco will support its rapidly growing European marketing platform by complementing its existing offerings for its clients across the UK and the EU.

Phase I of Agroberries’ strategy in the country includes the planting of about 300 hectares of blueberries in three different regions. This planting has already commenced, and will continue throughout 2023.

“Our investment in Morocco is a natural next step in our global expansion plan as a leading berry grower and marketer,” said Jorge Varela, co-founder and CEO, Agroberries. “This move leverages our deep agronomical expertise, partnership approach and will help us to continue supplying our European customers year-round with the highest quality berries.”

In the coming years, the company has expressed its intent to further expand its grower network through the licensing of its proprietary varieties with a goal of reaching a total 1,000 hectares across all berry categories.

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.