January 21, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

By this point, the wellness trend and the correlating consumer demand for fresh produce seem to be here to stay. It’s the new normal, as they say. 

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.

These 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.

Privately owned global investor Continental Grain Company has recently strengthened its exposure to this potential by investing in Chile-based Agroberries – a leading, global, vertically integrated fresh berry producer, marketer, and distributor.

Each year, Agroberries commercializes more than 50,000 tons of berries to blue-chip customers – primarily in North America and Europe – from its land holdings of more than 2,000 hectares (4,942 acres) and a network of third-party growers.

With marketing companies in the U.S. and the Netherlands, Agroberries owns farms and state-of-the-art packing facilities in both hemispheres, offering a selection of both conventional and organic berries year-round.

Organic production and organic produce have become an even stronger focus for consumers. Organic produce sales in the U.S. increased by 14.2 percent in 2020, equalling an increase of $1 billion to $8.5 billion, according to the 2020 Organic Produce Performance Report.

And looking ahead, the global organic food market is expected to grow at a CAGR of 12.6 percent to reach a value of more than $23.5 billion by 2025, according to 360 Research Reports. 

Broken down, berries (strawberries, blueberries, and raspberries) were counted in the highest categories for growth at 12.2 percent, following only packaged salads, which saw growth of 15.4 percent, potatoes at 21 percent, and herbs and spices at 26 percent.

This investment from Continental Grain will enable Agroberries to capitalize upon these factors by expanding its production assets and global distribution capabilities – both organically and inorganically. It also will accelerate the roll-out of proprietary varieties further strengthening the company’s year-round offerings.

Continental Grain has more than 200 years of history across the food and agribusiness spheres, building platforms that leverage its strategic expertise in food production, processing, and distribution by working alongside and supporting strong management teams – such as Agroberries’ where the owners remain directly involved in the management and success of the business.

“We have known the leadership team of Agroberries for years and believe the Company is well positioned to capitalize on a wide range of growth opportunities going forward,” said Carlos Poblete, co-head of Latin America for Continental Grain.

As a long-term partner, Continental Grain will use its international network, its M&A resources, and its operational expertise to ensure Agroberries achieves its strategic and developmental goals.

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.”

“We are excited to partner with Agroberries and support the next phase of the Company’s global expansion,” added Ingacio Sanz, co-head Latin America, Continental Grain. “Agroberries has established itself as a high-quality supplier in the markets it currently serves, and we intend to further grow the business through acquisitions that expand the Company’s geographic reach.”

– Lynda Kiernan-Stone is editor 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 Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com. 

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