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FROM PERISHABLEPUNDIT 05.06.19
Sun World Divests Its Farming... Focuses Resources on Genetics, Branding and Licensing
A Sea Change In The Nature
Of The Produce Industry... Sun Pacific affiliate to acquire growing operation
The winds of change are in the air for the produce industry. Grocery giants such as Danone and the Campbell Soup Company are divesting their produce interests. Non-U.S. interests now own, control or have substantial stakes in every banana giant. Today, there is breaking news out from Sun World, a company that has long stood in the forefront of innovation in this industry:
Sun World International Announces Land Sale Shifts focus to fruit breeding, licensing
BAKERSFIELD, CA – Sun World International LLC (Sun World) today announced the sale of its leased and owned California farming property to an investor group, which has contracted with Sun Pacific to farm the vineyards. The acquired entity will be called Famous Vineyards.
This move triggers a redeployment of resources to Sun World Innovations the company’s technology, breeding and licensing business. Sun World is owned by Renewable Resources Group LLC, a California-based asset management firm specializing in sustainable investing.
“We’re convinced of our team’s limitless potential to break new ground in fruit breeding and genetics,” said Sun World executive vice president and head of Sun World Inno- vations, David Marguleas. “By focusing additional investment on this side of the business, we intend to accelerate growth in a meaningful way.”
The company retains its SUN WORLD brand, global fruit and intellectual property licensing business and longstanding table grape and stone fruit variety development program. All business entities will be operated as Sun World Innova- tions at transaction close and will be headquartered in Palm Desert, CA.
Included in the transaction are Sun World’s farmland in California’s San Joaquin and Coachella Valleys. The under- standing is that the acquired land will continue to be farmed for table grapes. The new owners have indicated they will finalize staffing decisions within the coming 10 days. Jason Fuller, vice president of sales for Famous Vineyards, expressed enthusiasm for the transition and noted, “We are committed to maintaining the strong supply programs and relationships built over the years.”
Current Sun World chief executive, Merrill Dibble, will stay on to work closely with all parties to manage a smooth transition. “As enthusiastic as we are about advancing our breeding and licensing business, we’re mindful of Sun World’s farming heritage and the sale of this land was a carefully considered decision,” said Dibble.
JIM PREVOR EDITOR-IN-CHIEF
“Our understanding that the new owner plans to farm the acreage was critical to us in terms of our colleagues’ continued employment,” continued Dibble. “RRG has invested significantly in Sun World. They planted new vines and brought their expertise in operations and sustainability to virtually every aspect of our business. There’s every reason to feel optimistic about the future of this land and the people who’ll farm it.”
About Sun World International LLC
Sun World International is a grower and marketer of sustainably-grown premium red, green and black table grape varieties.
About Sun World Innovations
Sun World Innovations is the genetics, breeding and licensing arm of Sun World International, LLC. It was formed in 2015 to drive growth of fruit breeding, varietal develop- ment, licensing, agricultural technologies and international investments. It has a network of licensed partner growers and maintains international offices in Italy, Australia, Chile, Israel and South Africa.
About Renewable Resources Group LLC
Renewable Resources Group is an asset management firm specializing in land management, agriculture, water, conservation and renewable energy. They are privately held and headquartered in Los Angeles.
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Of course, though this is an important event to those directly involved, there is a sense in which this is a small event for the produce industry. Sun World used to have two parts — one a growing operation in California, and one a breeding, intellectual property and licensing business. Both will still exist. But now an investment group affiliated with Sun Pacific will take over the growing, and Sun World will refocus its attention and resources on its Sun World Innovations unit, the pioneer in the space of developing new genetics for grapes and stone fruit with a global footprint of licensees selling the fruit under specified brands.
Yet there is something of “The Minnow Swallowed the Whale” element to the story, and that story is a mirror of the changing
10 / MAY 2019 / PRODUCE BUSINESS