Chiquita, arguably one of the world's most widely recognised fresh produce labels, is one of a number of major US consumer brands that are undervalued, according to new analysis published by strategy and communications firm CoreBrand.
The group suggested that Chiquita had so far been unsuccessful in translating what it described as brand equity into brand value.
'There are many elements that contribute to a company's overall value,' commented James Gregory, chief executive of CoreBrand. 'Even when companies exhibit strong branding, they can be plagued by other factors that decrease the overall company value, such as weak financials, being part of an unfavourable industry, or a lack of diversification.'
Chiquita Brands International, which is responsible for marketing the Chiquita brand across a range of different products in markets around the world, was experiencing a similar situation because it had failed to successfully communicate to the public the diversity of its product portfolio, CoreBrand said.
'Although Chiquita has a high CoreBrand Power of 49.9 and a high CoreBrand Equity of 13.9 per cent of its market capitalisation, its CoreBrand Equity only translates to a brand value of US$50m,' the report stated.
'Already well-known as an American producer and distributor of bananas, Chiquita Brands International could benefit from efforts to broaden its brand identify to focus on its other products.'
No comments yet