Italy's pasta giant De Cecco is poised to complete a vertical integration play that will see the Abruzzo-based company control the entire tomato supply chain from field to shelf, following a binding agreement to acquire 100% of RossoGargano, a Puglia-based tomato processor. The deal was announced on June 5, 2026, and will push the group's revenue toward €1 billion by 2027 and increase product volume significantly.
Why This Matters
• Production surge: De Cecco's total output is projected to jump from 2.7 million quintals in 2026 to 4.5 million quintals in 2027, a 67% increase. (A quintal equals 100 kilograms.)
• Timing: The deal is expected to close by July 2026, pending regulatory approval.
• Strategic move: The acquisition gives De Cecco control of the tomato processing chain in a region that is central to Italy's industrial tomato production.
• Employment: RossoGargano's workforce and network of local growers will integrate into De Cecco's operations in Foggia province.
From Pasta Maker to Supply Chain Controller
De Cecco, the world's third-largest pasta producer, has long relied on external suppliers for tomato-based products—a segment where quality control has been more fragmented. The acquisition of RossoGargano, a cooperative agricultural corporation based in Foggia, changes that structure. RossoGargano operates an integrated supply chain: cultivation, industrial processing, canning, and distribution of tomato products and vegetable preserves.
According to De Cecco's statement, the company already operates successfully in this segment with international presence. The acquisition makes operational integration more straightforward than a typical acquisition might suggest.
"This operation allows us to complete and strengthen our production chain, improve our margins in a segment where we already operate successfully, and offer consumers products made with direct control over every phase of the process—from raw material cultivation to commercialization," said Filippo Antonio De Cecco, president of the De Cecco Group, in the statement announcing the deal.
Financial Structure and Strategic Timeline
The deal was supported by banking arrangements that provided the financial resources for the acquisition. The transaction fits within De Cecco's broader €250 million investment plan spanning 2025 to 2029, of which €100 million has already been deployed. Those funds have gone toward new milling facilities, expanded grain storage capacity, and automated warehousing to optimize logistics.
The company expects the acquisition to finalize within the next six weeks, contingent on antitrust and regulatory clearances. Given the competitive structure of Italy's tomato processing sector, the deal is likely to face scrutiny from competition authorities.
What This Means for Residents
For consumers, vertical integration typically leads to tighter quality control and more consistent product standards for tomato sauces, passata, and canned goods carrying the De Cecco label.
For farmers and agricultural workers in Puglia, RossoGargano's network of local growers coordinates tomato cultivation under contract. De Cecco has committed to maintaining these relationships, which could provide stability for the agricultural community in the short term.
Foggia province is a significant hub for Italy's industrial tomato production. De Cecco's investment and modernization of production facilities in the region represents new capital flowing into the area.
Strategic Context
This is not De Cecco's first move into vertical integration, but it is the most significant acquisition to date in the company's history. De Cecco has historically prioritized internal growth, focusing on in-house milling, olive oil production, and logistics infrastructure.
By acquiring the tomato processing chain, De Cecco insulates itself from volatility in the raw materials market and gains operational flexibility to respond to demand shifts in both retail and food service channels.
Market Implications
The acquisition positions De Cecco as a major player in Italy's tomato processing sector alongside established competitors. RossoGargano's existing international presence also gives De Cecco additional reach in export markets where Italian tomato products command strong positioning.
Timeline and Next Steps
The July 2026 closing date depends on regulatory approvals proceeding smoothly. Antitrust reviews will examine whether the transaction substantially reduces competition. Given that De Cecco's core business is pasta rather than tomatoes, and that RossoGargano is regionally concentrated, the transaction may clear without significant conditions.
Integrating a cooperative agricultural structure with an established industrial group will require careful management of relationships with contract farmers, quality standards, and production targets.
De Cecco's €250 million investment over five years signals the company's confidence in the Italian food sector's resilience. The acquisition reflects a broader trend in Italian agribusiness toward consolidation driven by scale economies and supply chain control.
If De Cecco successfully executes this acquisition and integration, it will strengthen its competitive position in both domestic and export markets—with supply chain operations anchored in the tomato-growing regions of Puglia.
