Fresh produce giant Chiquita Brands International yesterday announced a joint venture (JV) with France-based Danone to market fruit beverages based on the former’s ‘Just Fruit in a Bottle’ platform in Europe.
Within a mere four years, Chiquita’s Just Fruit in a Bottle product has become one of the market leaders in Europe’s fruit smoothie category, with distribution in 12 countries and sales of €20m in 2009. This joint venture will, according to Chiquita, offer the company a new platform for expansion of the product.
Chiquita chairman and CEO Fernando Aguirre commented: “Chiquita’s partnership with Danone leverages both firms’ complementary strengths and will enable us to expand Just Fruit in a Bottle much faster and more efficiently across Europe, substantially increasing revenues and profitability.”
According to the deal, Chiquita and Danone will become financial and operational partners in a new JV managed by Danone and headquartered in Paris as the exclusive distributor of Chiquita Just Fruit in a Bottle and all future Chiquita-branded beverage products in Europe. Chiquita will reportedly provide local sales, marketing and supply chain services.
Bernard Hours, co-chief operating officer of Danone, stated: “We are excited to partner with Chiquita in providing consumers with healthy, fruit-based, fresh products. The combination of Danone’s healthy European footprint together with Chiquita’s operational expertise in fruit-based drinks will create exciting growth opportunities.”
According to a statement from the two companies, Chiquita will receive a one-time cash payment for a 51 per cent interest in the JV and license its trademark to the new entity.
The agreement is expected to be completed in the first half of 2010, once approval has been granted by the European regulatory authorities.
Meanwhile, California-based food technology product supplier Landec Corporation, which manufactures speciality polymer products for companies including Chiquita, has announced an increase in revenue of 8 per cent for the third quarter of fiscal year 2010, to US$58.1m.
Landec’s food subsidiary Apio saw an increase in revenue of 8 per cent for value-added fresh-cut vegetables.
Chairman and CEO Gary Steele commented: “We believe that industry unit volume sales in the fresh-cut vegetable category will continue to grow during the next year as long as the economy continues to improve and consumers return to buying fresh, nutritious and conveniently packaged produce products.”
