Fresh Del Monte Produce has sold its Fresh Leaf Farms brand and operations to First Leaf Farms for an undisclosed sum.

In a statement, the US group said the deal followed a review of its vegetables division, which is called Mann Packing.

Fresh Del Monte said the unit needed to increase its efficiency, "elevate" its product range and offload "non-core assets".

In February, the group said it was “exploring strategic alternatives” for Mann Packing.

Fresh Del Monte acquired the Californian prepared vegetables and salads maker in 2018 for $361m.

The company booked a non-cash impairment of $131.2m in its fiscal fourth quarter to 29 December 2023, mainly linked to Mann Packing.

The sale of Fresh Leaf Farms is a “key step” in the division's "strategic direction", Fresh Del Monte said in its statement yesterday (29 October).

“As Fresh Del Monte’s vegetable division and with innovation as its driving force, Mann Packing remains committed to delivering high-quality, fresh products that meet the evolving needs of our customers and consumers," Fresh Del Monte chairman and CEO Mohammad Abu-Ghazaleh added.

Financial terms were not disclosed. Just Food has asked Fresh Del Monte if any staff will move to the new owner.

Mann Packing will "continue prioritising its core vegetable line along with signature innovations", Fresh Del Monte said, pointing to the Broccolini, Stringless Sugar Snap Peas and Better Leaf brands. A focus on these areas can boost profits, it added.

First Leaf Farms is a partnership between the Costa and Nunes families of Salinas Valley in California. 

With over 65 years in farming, the Costa family served as a leafy greens supplier for Mann Packing.  

Meanwhile, the Nunes family is recognised for its Foxy and Foxy Organic brands, offering conventional and organic fresh vegetables. 

First Leaf Farms will use Mann Packing’s logistics network during the Yuma season to ensure “uninterrupted service and operational efficiency”.  

The Costa family will continue to grow leafy greens for Mann Packing, maintaining a collaborative partnership with opportunities for future growth. 

Production and operations for First Leaf Farms will be managed by the Costa family, while The Nunes Company will handle all sales and marketing activities.  

Costa family operations partner Mike Costa said the acquisition is “a natural fit” citing the “long history in the Salinas Valley and 40-plus-year relationship with the Nunes family”.