March 28, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

AM FRESH Group and leading Chilean table grape producer and exporter RIO BLANCO announced the formation of Terramara Fresh, a joint venture to develop innovative table grape varieties produced in a sustainable way in Mexico. 

It was in October 2019 when sustainable food chain investor Paine Schwartz announced its investment in AM FRESH’s Special New Fruit Licensing (SNFL) subsidiary in exchange for a 30 percent stake in what would be a new entity. 

Founded in 1992, SNFL and its best-in-class R&D innovation platform is ranked as the world leader in developing, licensing, and commercializing patented table grape varieties as measured by licensed farming hectares.

The investment by Paine Schwartz and the subsequent partnership was undertaken to accelerate SNFL’s breeding, development, and registration pipelines. As joint funders, the partners are working to advance farming on a global scale, and to foster commercialization to retail partners with comprehensive solutions via bespoke production and long-term continuity.

“We believe that in Paine Schwartz we have found the perfect partner to help us execute our strategic vision,” said Alvaro Muñoz, CEO, AM FRESH at the time. “The partnership with Paine Schwartz is a catalyst for the execution of our global consolidation and vertical integration plans, enabling a faster transformation in the table grape sector globally with a focus on meeting the dynamic needs of growers, retailers and consumers, worldwide.”

In early March 2022, AM FRESH Group went on to acquire International Fruit Genetics (IFG) with the intent of merging it with SNFL to create an entity supremely positioned to significantly advance both parties’ breeding capacities and expansion of their portfolios. 

Within weeks we now arrive at our current position, with AM FRESH announcing its latest joint venture with RIO BLANCO, which for more than three decades – through its Terramara investment – has thrived as a competitive farming platform.

With an emphasis on production, this new partnership will focus on innovative table grapes that are resilient — especially to changes in weather; have higher yields; have consistent, high-quality flavor profiles and are high-antioxidant; have better nutritional values; and will serve to advance the practice of farming in Mexico.

These premium varieties from proprietary breeding platforms will complement existing table grape offerings, improve the competitiveness of table grapes compared to other fruits, and will ultimately raise the sophistication level of the table grape category benefiting both retailers and consumers.

“At AM FRESH we seek to deliver the next generation of innovative table grape varieties and together with RIO BLANCO we have the thrilling opportunity to excite consumers with delicious, healthy and natural varieties produced under sustainable practices, as well as to extend the growing season to meet growing demand,” said Alvaro Muñoz, CEO, AM FRESH Group.

Established in the late 1970s, RIO BLANCO is a family business founded by pioneers in the Chilean fruit industry. Employing state-of-the-art ag technologies across its operations in Hermosillo, Mexico, in the region between Curicó and Copiapó in Chile, and in newly incorporated areas of operation in Mexico, RIO BLANCO predominantly produces table grapes, citrus, pomegranates, kiwis, and cherries, and controls a fully integrated business encompassing production, processing, shipping, and distribution.

“Sustainable agriculture is pivotal for RIO BLANCO and the region in which we operate,” said Sandro Peppi, chairman, RIO BLANCO. “In order to drive significant impact in the table grape industry in Mexico and to our export markets, it is critical that we combine our efforts with global grape experts and together accelerate a more sustainable future for Mexico and the table grape category.”

Also a family business in existence for more than 90 years, AM FRESH has more than 6,200 employees with a presence in more than 60 countries operating an integrated value chain that touches varietal innovation, agro and bio technologies, and extensive agricultural production and global marketing.

The new combined venture will be managed by Luis Felipe Montes, who has been managing director of TERRAMARA for the past nine years.

Commenting on this new venture, Montes said, “We are thrilled by this joint venture and its objective to add growth, cooperation and new technology to TERRAMARA in the development of new varieties and therefore get closer to retailers and consumers.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com. 

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