Ambitious CEO overpaid for Fr Exp acquisition some $700mm. Try and sell it now - a joke. Could have started up own fresh fruit biz for fraction. Typical INCOMPETENT CEO mentality. Can get hands on dough and overpay for baloney assets. This "division" is big problem, more than bananas. Bring back United Fruit - they knew how to get things done
I do not agree, IV gamma is a grower. In Europe the ‘Florette’ brand (€600 million in 2009) is profitable. Remark that it doesn’t need FreshRince to have a safe product. Bananas are more problematic. Hurricane ‘Tomas’ and la Niña wipped out 20% of worldwide production. So the next 6 months we will have not enough bananas to meet retailers demand. Spot FOB prices in Ecuador reached already $12.00 per box. Independent producers are sending the Chiquita boys back, as their first offer was to pay for 2011 $0.25 per box less. Chiquita is missing the flexibility to adapt itself to this fast changing environment. It has no more enough own production to be the leader of the industry. This is sad.
i don't think you get the gist of my message. Co. could have started up it's own version of "fruit salad" biz for fraction of cost of buying Fresh Express. And hocked themselves to the hilt to do it. What I'm saying imo was a unneccessary squandering of co assets with corresponding huge debt increase. And stock price reflects the cost of this "bargain". If somebody working for me tried to pull something like that off - dogs would lick guillotined nuts