As part of Chiquita Brands International’s drive to derive more revenue from high-margin products, the fruit trader announced yesterday it had entered into a value-added produce joint venture in China.
Chiquita’s new cohort is the Haitong Food Group, an export-orientated vegetable processing company active in the Chinese market for over 20 years, according to a press release from the company.
The joint venture company, Zhejiang Chiquita-Haitong Food Company Limited, will process, market and sell value-added fresh produce like packaged salads, cut fruits and vegetables and chilled drinks.
Chiquita is keen to enter the growing Chinese market: “Introducing the Chiquita brand to the emerging Chinese value-added produce market is an important strategic step in becoming a global leader in branded, healthy, fresh foods,” said the company’s CEO Fernando Aguirre.
The US-based company will own the majority of the joint venture and provide limited capital investment as soon as it receives regulatory approval, which it expects in the fourth quarter this year.
High-margin products have become a focus for Chiquita, according to The Packer.
The company’s corporate communications and investor relations manager Ed Loyd said Chiquita’s aim was to draw at least 5 per cent of its revenue from new, high-margin products.
Chiquita to Go, the company’s individual bananas sold in convenience stores, are just one of a number of high-margin products the company is already selling. Fruit cups, smoothies and apple chips are already on the market as well.
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