Emily Johnson
Chiquita Brands International Inc. is a well-known international company with a leading position in the banana industry. The company has a long history dating back to 1870 when it began as a banana reseller. Over the years, Chiquita has expanded its operations and diversified its product offerings, employing thousands of people worldwide. In 2014, Chiquita Brands International and Fyffes announced a merger, creating the largest banana company in the world. However, Chiquita has also faced controversies, including allegations of human rights violations and illegal payments to paramilitary groups. The company has been subject to lawsuits and has paid millions in settlements. Chiquita's ownership has changed hands over the years, and it now operates as a corporate entity based in Switzerland with its banana division in Florida. While the company is publicly traded on the New York Stock Exchange, specific information about the current owners of Chiquita mushrooms is not readily available.
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What You'll Learn
Chiquita's history and ownership
Chiquita Brands International Inc.'s history began in 1870 when a ship's captain named Lorenzo Dow Baker purchased 160 bunches of bananas in Jamaica and resold them 11 days later in New Jersey. In 1873, Central American railroad developer Minor C. Keith began to experiment with banana production in Costa Rica. Later, he planted bananas alongside a Costa Rican railroad track to provide revenue for the railroad. In 1899, The Boston Fruit Company and other companies producing and marketing bananas grown in the Caribbean, Central, and South America merged to form the United Fruit Company, with Minor C. Keith as its principal founder.
In 1947, the brand name Chiquita was registered as a trademark, and in the same decade, the character of Miss Chiquita, a personified cartoon banana, was created. In 1952, the Guatemalan government began expropriating unused United Fruit Company land to landless peasants, and the company responded by lobbying the US government to intervene. In 1966, the company expanded into Europe and acquired J. Hungerford Smith Company, owner of A&W Root Beer. Eli Black became chairman, president, and CEO in 1968.
In 1970, the company merged with AMK Corporation and changed its name to the United Brands Company. After Black's suicide in 1975, the company was acquired by Seymour and Paul Milstein. In 1984, Cincinnati investor Carl Lindner Jr. became the controlling investor in United Brands. In 1990, the company adopted the Chiquita name as Chiquita Brands International, Inc. and was headquartered in Cincinnati, Ohio.
Chiquita has been involved in several controversies, including accusations of exploiting workers, misusing land, bribing officials, and causing political instability in Latin America. In 2007, Chiquita pleaded guilty to charges of making illegal protection payments to a right-wing militia in Colombia, and in 2024, a jury found the company liable for the militia's actions, ordering Chiquita to pay $38.3 million to the families of those killed.
In 2014, Chiquita Brands International and Fyffes announced a merger agreement, creating the largest banana company in the world. ChiquitaFyffes would be domiciled in Ireland and listed on the New York Stock Exchange. Since the merger's completion in 2015, Chiquita has been based in Switzerland with its banana division operating from Florida.
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ChiquitaFyffes merger
Chiquita Brands International, a successor to the United Fruit Company, and Fyffes, a Dublin-based company, announced a merger in March 2014. The agreement would have created the largest banana company in the world, with projected annual revenues of US$4.6 billion. The merged company, ChiquitaFyffes, would have shipped 16 billion bananas annually, capturing a global market share of 14%. The all-stock purchase was valued at US$526 million, with former Chiquita shareholders owning approximately 50.7% of the new company and Fyffes shareholders owning 49.3%.
Chiquita's CEO, Ed Lonergan, described the merger as a "milestone transaction," highlighting the benefits of a diverse product mix and joint expertise. The merger also had tax advantages, as it would have allowed Chiquita to move its headquarters to Ireland, where tax rates are lower.
However, in October 2014, shareholders in Chiquita voted against the merger, citing a more attractive offer from Brazilian groups Cutrale and Safra. This decision sent Fyffes' shares down 5% to 94 cents in Dublin, while Chiquita shares rose 3% to $14.16 in New York. Following the vote, Chiquita entered into talks with Cutrale and Safra, marking an end to the proposed ChiquitaFyffes merger.
Chiquita has a history dating back to 1870 when Lorenzo Dow Baker purchased 160 bunches of bananas in Jamaica and resold them in Jersey City. The company has faced controversies, including accusations of exploiting workers, bribing officials, and causing political instability in Latin America. Chiquita has also been fined for making illegal protection payments to a right-wing militia in Colombia and found liable for the militia's actions.
Fyffes, on the other hand, began trading in the 1880s and is well-known for its blue label. The company employs about 12,000 people worldwide and has a strong commitment to promoting fair trade fruit. Despite the merger's potential benefits, the rejection by Chiquita shareholders highlights the competitive nature of the industry and the ongoing pursuit of maximizing shareholder value.
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Chiquita's subsidiaries
Chiquita, formerly known as United Fruit Company, has a long history dating back to 1870 when it began as a banana reseller. Over the years, it has expanded its operations and now has subsidiaries and a presence in almost 70 countries across the globe.
Chiquita has a strong presence in North America, with bananas being a significant part of its business, accounting for 60% of its annual sales. However, the company has faced controversy, including accusations of workers' rights violations and illegal activities. In 2007, Chiquita pleaded guilty to making payments to a Colombian paramilitary group, the AUC, which was designated as a terrorist organisation by the US. The company has also faced financial troubles, using bankruptcy protection to reorganise in 2001 due to declining profits.
In 2014, Chiquita Brands International announced a merger with Fyffes, creating the largest banana company in the world, with projected annual revenues of US$4.6 billion. Chiquita's CEO, Ed Lonergan, emphasised the benefits of the merger, including a more diverse product offering. The merged entity, ChiquitaFyffes, was to be domiciled in Ireland and listed on the New York Stock Exchange. Chiquita has also explored new branding avenues and licensing opportunities beyond bananas, partnering with the Joester Loria Group (JLG) to expand its brand reach.
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Chiquita's controversial past
Chiquita Brands International, Inc. has had a controversial past, with a history of unethical practices and human rights abuses. The company's origins can be traced back to the United Fruit Company, founded in 1899, which later became the United Brands Company in 1970 after merging with AMK Corporation. Chiquita, adopted as the company name in 1990, has faced numerous accusations and lawsuits over the years.
One of the most significant controversies involves Chiquita's dealings with a paramilitary group in Colombia. In 2007, the company pleaded guilty to making payments to the United Self-Defense Forces of Colombia (AUC), a violent, right-wing terrorist organization. Chiquita made these payments from 1997 to 2004, even after the AUC was designated as a foreign terrorist organization by the US in 2001. The company argued that it was forced to make these payments to protect its employees in Colombia, but a US court found Chiquita liable for financing the paramilitary group, resulting in a $25 million fine and a $38.3 million payment to the families of those killed by the AUC.
Chiquita's predecessor, United Fruit, was also accused of exploiting workers, misusing land, bribing officials, and causing political instability in Central and South American countries during the first half of the 20th century. Local newspapers referred to the company as "el pulpo" ("the octopus"), implying its tentacles reached into various aspects of government and society. In 1928, a strike by United Fruit workers demanding better wages and conditions resulted in the deaths of a thousand or more workers, an event known as the Banana Massacre.
Additionally, Chiquita has faced accusations of workers' rights violations, as reported by the Cincinnati Enquirer in 1998, although the newspaper later retracted the articles due to illegally obtained evidence. Chiquita has also been criticized for its lobbying efforts, such as in 1952 when it lobbied the US government to intervene in Guatemala's expropriation of unused company land, portraying the Guatemalan government as communist. This led to the installation of a pro-business military dictatorship in 1954.
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Chiquita's marketing and advertising
Chiquita, formerly known as United Fruit Company, has a long history of marketing and advertising that has contributed to its success and brand recognition. The company has employed various strategies to promote its products and establish itself as a leading global banana company.
One of Chiquita's earliest marketing successes was the introduction of Miss Chiquita, a personified cartoon banana character, in the 1940s. This character evolved over time, eventually becoming a woman in the 1980s to embody the word "chiquita," which is the diminutive of the Spanish word "chica" meaning "girl." Miss Chiquita has appeared on the distinctive blue stickers on Chiquita bananas and other products since 1963 and has become a beloved and iconic symbol of the brand.
Chiquita's blue stickers themselves have also played a significant role in the company's marketing. The stickers have become a seal of approval for high-quality fruit and are instantly recognisable to consumers. The company has also launched several successful advertising campaigns over the years, including the “It Peels So Good" campaign, which celebrates the brand's leadership, premium quality, distinctive personality, and heritage.
In addition to its traditional advertising campaigns, Chiquita has also sponsored major events such as the 1980 Winter Olympics in Lake Placid, New York. The company has also been known to lobby the US government to further its business interests, as seen in the 1950s when it lobbied for intervention against the expropriation of its land in Guatemala.
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