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Showing posts from March 11, 2014


Chiquita-Fyffes merger a “dramatic acceleration” for banana value

March 11th, 2014

The CEO of Chiquita Brands International (NYSE: CQB) says it would have taken around 15 years of banana sector income growth to add the same value expected from a merger with Fyffes Plc (ESM: FFY).

Speaking with analysts after an investor presentation, Chiquita CEO Ed Lonergan highlighted the synergies the companies shared, while also having little overlap between brands.

“I think about it this way. We are creating together US$40 million of new value that wouldn’t exist if we were apart, and if you think about the 4% EBIT target we’ve been talking in bananas now for the last 18 months, we’d have to create US$1 billion in new business in order to generate that value,”
said Lonergan, who has been slated as the chairman of the new entity ChiquitaFyffes.

“So we’re talking about delivering this in the first full year of operation after integration, and I think if we were to create US$1 billion of banana business …

Mangoes proven to be a good line for R.C.F Produce Inc.

by Tad Thompson | March 11, 2014

RIO RICO, AZ — Upon becoming a produce grower in 1960, Malu Crespo’s grandfather, Jorge Crespo, chose not to become a mango grower “because it was too easy,” said Malu.

 “He said, ‘You have a big tree that you water. Then you harvest and take the mangos to the packing shed. It is too easy.’”

“When we were in the peak season, my father used to say, ‘If your grandpa would have known all the hard work we need to do to export the mangos, trust me, he would have exported mangos!’“
Malu noted in late February.

But, Jorge Crespo chose to be a chili pepper grower. The chilies needed to be re-seeded with the beginning of each season. And then nurtured from there. Jorge Crespo had a successful chili business. He passed away in 1985.

The Rio Rico, AZ, office of Malu Crespo, president of R.C.F Produce Inc., is filled with pictures telling the story of her family’s business growth.

The family remains strong in chilies, but 1986 the family became a major mango packer thro…

How the Chiquita Merger Will Change America's Fruited Plains

March 11, 2014

Chiquita Brands International Inc. bananas are arranged for a photograph at Union Street Produce Co. in San Francisco, Calif. on Feb. 19, 2013.David Paul Morris/Bloomberg via Getty Images

What does the merger of two giant banana producers--Chiquita Brands in the U.S. and Ireland's Fyffes Plc--mean for U.S. consumers and the prices that they pay for fruit?

With $4.6 billion in sales, the combined company, ChiquitaFyffes, Plc, will be by far the world's biggest banana producer and a major player in melons, pineapples and packaged salads.

David Holohan, head of research for Merrion Stockbrokers in Dublin, calls the Chiquita-Fyffes combo a good deal for both companies. "It's a consolidating market, fragmented between four players," he says of bananas.

Chiquita shares up 12.2 percent

Before the merger, Chiquita already had the biggest market share of the banana market, he says, with 125 million cases sold globally, followed by Del Monte (117 mi…