San Miguel to sell South African and Peruvian fresh fruit operations
San Miguel, the global producer and exporter of fresh and processed citrus fruits, has announced that it has signed an agreement to sell its fresh fruit operations in South Africa and Peru.
According to a statement, San Miguel will shift its focus to enhancing production and exportation of lemon derivatives, which are strategic ingredients for its clients in the drinks, food, flavor and fragrance industries.
The Spanish company Citri&Co offered to buy all shares of the company’s Peruvian and South African branches, as well as sales exclusivity for fresh fruit it continues to produce in Argentina and Uruguay.
The move comes as the leading producer of citrus fruits in the Southern Hemisphere aims to boost global leadership in industrial business. San Miguel will strengthen its financial structure by making investments in new projects targeting the expansion of its range of Natural Ingredients products to be sold to clients around the world.
At the same time, the company will continue to produce and export around 60,000 tons of fresh fruit from the two countries that straddle the Río de La Plata, which will be marketed by Citri&Co.
“At San Miguel, we are excited to start this new chapter, focusing our strategies on development and growth of the natural ingredients business through new investment projects, to continue to supply products to our clients around the world”, explained Pablo Plá, CEO of San Miguel.
The company already processes more than 340,000 tons of lemon from its operations in Argentina, Uruguay and South Africa, which represents 15 percent of the world's production of natural ingredients. It also creates and exports high added value products like essential oils, juices and dehydrated peel to food, drinks, fragrance and flavor companies across the globe.
In addition, over the last 12 years, San Miguel has established new packaging, consolidated a trust fund for employees and promoted local development through the creation of more than 2,000 job positions every season in South Africa.
In Peru, the company managed to increase efficiency and production for all its crops, strengthening long term relationships with the world’s main retailers.
“We trust that Citri&Co has the conditions needed to continue to drive fresh fruit operations in Peru and South Africa to the next level and to contribute positively to San Miguel, in order to boost marketing of its fresh fruit business”, Plá concluded.
The definitive closure of the deal is subject to the fulfillment of the requirements and norms associated with this type of transaction. It is expected to be completed in the weeks ahead.