Del Monte predicts sales boost in US after protectionist policies
Del Monte Chief Operating Officer Luis F. Alejandro told reporters that China will play a big role in Del Monte’s global expansion, eventually accounting for a third of revenues from operations in Asia.
The company currently sells fresh pineapples in China under the S&W brand and contributes less than 10% to sales in Asia.
“We have a long way to go in penetrating China, which is the biggest of them all. We are not even where we want to start in China,” Mr. Alejandro said during a road show to kick off the sale of the company’s dollar-denominated securities amounting to up to $250 million on Wednesday.
Despite its shrinking contribution, the US will continue to have a huge share in the total portfolio, with Mr. Trump’s policy of protectionism expected to boost revenues in the world’s biggest economy.
“The branded business for vegetables, that is really growing... but the core fruit, particularly peaches and pears, that one is pretty much challenged. That’s where we love President Trump because a lot of peaches in the US are coming from China. That in itself is a threat,” Mr. Alejandro said.
source: lse.co.uk
