David Marguleas, CEO of Sun World International LLC, BB #:341274 calls the company’s recent acquisition a transformative move.
On August 1, Sun World announced the acquisition of Biogold Group, a South Africa-based global fruit variety rights manager, trading as Citrogold in South Africa. The move adds citrus, mangos, and avocados to Sun World, doubling its crop portfolio, Marguleas said.
In an exclusive interview with Blue Book August 15, the CEO explained how the acquisition will change Sun World.
“There’s a dearth of innovation in breeding mangos and citrus, so this gives growers access to hundreds of varieties from one company,” Marguleas said.
Sun World transitioned itself from a grower-shipper to a fruit variety development and licensing company, but he said the company still has relationships with buyers, and many contacted Sun World after hearing of the acquisition.
“We still have retail contacts,” he said. “They’re excited to bring more innovation to their produce departments. They want to differentiate. We’re entering a golden age of breeding, which is a huge opportunity for retailers to delight consumers.”
Sun World has nearly 3,000 licensees globally, and Marguleas said the acquisition will enhance their competitiveness.
“A grower can have a variety with unique flavor or texture,” he said. “They can break out of the commodity sector that they’ve struggled with for generations.”
Sun World previously specialized in table grapes and stone fruit, so adding citrus, mangos, and avocados is a natural fit, as Marguleas said all these grow in close proximity in many countries.
He said Sun World licenses varieties to many well-knows fruit grower-shippers such as Jakov Dulcich And Sons BB #:140020, Frutura, Dayka & Hackett BB #:189566, Moonlight Packing BB #:163728, Fowler Packing BB #:112355, and Sun Pacific Marketing Cooperative BB #:122874.
Wonderful Citrus BB #:115157 had been a licensee of Biogold, and now joins Sun World.
Marguleas said Biogold has some mango varieties that it was preparing to release in the next season or two.
“Breeding is a long game,” he said, “so we have patience and experience. We already have many varieties in the pipeline.”
