May 7, 2019

Sun World International (Sun World), which is owned by asset management firm Renewable Resources Group, announced the sale of its owned and leased California table grape farming properties to Famous Vineyards, a new entity established by an investor group specifically to buy the Sun World acreage. Famous Vineyards has contracted with Sun Pacific to farm the table grape vineyards.

“I’m not exactly sharing state secrets when I say this is a difficult time for agriculture,” said Merrill Dibble, CEO, Sun World. “Issues largely out of the industry’s control – like competing supply regions, fewer people available to harvest our crops, tariffs, regulation – are enormous market stressors. But we continue to farm and plant for the next harvest and it was fully our intent to do so.”

The scale and number of acres being sold was not released; however, indicating the scope of the sale, Sun World Chief Executive Merrill Dibble said that the company has yearly production of between 6 and 7 million boxes of fruit.

“We are committed to maintaining the strong supply programs and relationships built over the years,” said Jason Fuller, VP of sales for Famous Vineyards.

Included in the deal are Sun World’s farmland in both the San Joaquin and Coachella Valleys, which will continue to be farmed to produce table grapes. Sun World, however, will retain its Sun World brand, its global fruit intellectual property, its licensing business, and its established table grape and stone fruit variety development program.

The move by Sun World to exit farming is part of the company’s strategy to redeploy resources to Sun World Innovations, the company’s technology, breeding, and licensing business.

“We’re convinced of our team’s limitless potential to break new ground in fruit breeding and genetics,” said David Marguleas, Sun World executive vice president and head of Sun World Innovations. “By focusing additional investment on this side of the business, we intend to accelerate growth in a meaningful way.”

Privately held Sun World International also announced the move of its headquarters from Bakersfield, California, to Palm Desert, where it will continue operating under the name Sun World Innovations. Launched in 2015, Sun World Innovations has licensed producers growing its proprietary varieties in Australia, Chile, Israel, and South Africa.

The 160 Sun World employees located in Bakersfield are expected to remain in place, and transition to Famous Vineyards within the coming 90 days. Meanwhile, Sun World Innovations will be overseen by CEO Marguleas, and Dibble will work with both parties to ensure a smooth transition before continuing to work with RRG, however, not in connection with grape growing or breeding.

“Our understanding that the new owner plans to farm the acreage was critical to us in terms of our colleagues’ continued employment. RRG has invested significantly in Sun World,” said Dibble. “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.”

-Lynda Kiernan