Chiquita plans salad expansion in 2012

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TOMATOES — F.O.B.S AS OF MAY 14

CENTRAL AND SOUTH FLORIDA DISTRICTS — Shipments (433-454-398) — Movement expected to increase. Trading moderate. Prices 5x6s higher, others lower. Extra services included. 25-pound cartons loose mature-greens 85% U.S. 1 or better 5x6s $8.95-9.95, 6x6s $7.95-8.95, 6x7s $7.95-8.95. Quality generally good.

MEXICO CROSSINGS THROUGH NOGALES, ARIZ. — Crossings (152-146-159, greenhouse 124-123-137, vine-ripes 28-23-22) — Movement expected to decrease seasonally. Supplies 4x4 to 4x5s light. Trading 4x4 to 4x5s fairly active, others slow. Prices 4x4 to 4x5s higher, others generally unchanged. Field-grown and greenhouse cartons/flats two-layer 4x4s mostly $9-10, 4x5s mostly $7.95-9, 5x5s mostly $4.99-5, 5x6s $4.64-5. Quality variable.

MEXICO CROSSINGS THROUGH OTAY MESA, CALIF. — Crossings (8-8-11, greenhouse 7-7-9, vine-ripes 1-1-2) — Movement expected to increase seasonally. Supplies in too few hands to establish a market. Quality generally good. The first f.o.b. report was expected to be issued the week of May 21.

WEST FLORIDA DISTRICT — Shipments (0-0-0) — Light harvest expected to start the week of May 28. Expect first f.o.b. by the first week of June.

U.S. SHIPPING POINTS — Greenhouse (54-56-**) — No prices reported. **unavailable

CANADA SHIPPING POINTS — Greenhouse (149*-150-**) — No prices reported. **unavailable, *revised

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Home > News > Chiquita plans salad expansion in 2012

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Chiquita plans salad expansion in 2012

02/21/2012 5:05:03 PM
Greg Johnson

Chiquita Brands International Inc. plans to expand its Fresh Express business in 2012 by growing its organic business, increasing its private label salads and getting into head lettuce.

In its 4th quarter and 2011 financial results conference call Feb. 21, Chiquita chief executive officer Fernando Aguirre laid out the company’s expansion plans, saying its strategy has moved from reducing debt to growing revenue.

The 4th quarter was more successful for Chiquita with a loss of $6 million compared to $18 million a year ago. Full year 2011 income was $38 million on net sales of $3.1 billion.

In bananas, net sales increased 4% to $2 billion thanks to higher prices in both North America and Europe, and comparable operating income was $132 million for 2011, compared to $81 million in 2010.

Aguirre said in addition to stronger prices, the banana turnaround was also because of expanded sales in the West Coast, increasing plantain business and its single to-go line.

In salads, net sales decreased 7% to $953 million with lower retail volume as Chiquita customers moved more into private label, according to the report.

“Our salads business did not perform as well as expected,” Aguirre said, “and we’ve taken a number of corrective actions and adapted our structure and strategy to be more successful and profitable.”

Aguirre said the company has saved about $15 million in cost by realigning its salad business, and more changes are expected in 2012.

He said the company plans to consolidate some of its facilities in the Midwest and concentrate more volume in its Chicago processing plant, although he didn’t get into specifics on what might happen to specific facilities.

Aguirre said Chiquita plans to be more active in the broader $5 billion salad category, not just the $2 billion bagged salad area, which is why its expanding into head lettuce and growing its organic business.

He also said Chiquita is considering acquisitions.

Chiquita is relocating its headquarters from Cincinnati to Charlotte, N.C., this year.

In other company news, chief financial officer Mike Sims is leaving Chiquita. Brian Kocher has been promoted to the position, having most recently served as president, Europe and the Middle East. Kocher joined the company in 2005.