Press Release
Chiquita Bananas To Be Distributed to C-stores Throughout North America by Core-Mark International
Wednesday February 22, 9:00 am ET
Goal to Reach More Than 5,000 Outlets by Year-End
CINCINNATI, Feb. 22 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. (NYSE: CQB - News) and Core-Mark International (Nasdaq: CORE - News), one of the largest North American distributors to the convenience retail industry, have entered into an arrangement to distribute Chiquita bananas using Landec Corporation's (Nasdaq: LNDC - News) patented packaging technology to convenience stores (C-stores) throughout the Core-Mark network. After successfully concluding a test at more than 200 C-stores, Chiquita and Core- Mark have a goal to expand the reach of premium Chiquita bananas to more than 5,000 retail locations in dozens of states by year-end.
"This arrangement is a good example of how we are executing our strategy to better meet consumer needs for convenient, healthy and great-tasting food," said Fernando Aguirre, chairman and chief executive officer at Chiquita. "Premium single-serve Chiquita bananas meet the consumer's desire for quality and freshness in the convenience store channel. Retailers benefit by being able to offer ready-to-eat healthy snacks with better margins and a longer shelf life. Chiquita benefits because C-store sales provide incremental profitable growth."
"We are very excited about the opportunity to partner with Chiquita and provide a premium banana offering to our customers utilizing the new packaging technology," said Mike Walsh, chief executive officer of Core-Mark. "This is another example of how Core-Mark is able to bring unique product and marketing solutions to the convenience retailing channel. We are confident this offer will resonate with convenience store consumers and will help our customers grow their sales profitably."
A joint technology development and supply agreement reached in September 2004 between Chiquita and Landec was a key enabler to this distribution arrangement with Core-Mark. Chiquita is using Landec's patented packaging technology (BreatheWay) to keep single bananas at the ready-to-eat stage required in immediate-consumption outlets. By extending the shelf life of bananas, new retail locations, such as C-stores, can now offer consistently high-quality Chiquita bananas.
Core-Mark is one of the largest broad-line, full- service wholesale distributors of packaged consumer products to the convenience retail industry in North America. Founded in 1888, Core-Mark provides distribution and logistics services as well as marketing programs to approximately 20,000 retail locations in 38 states and five Canadian provinces through 24 distribution centers. Core-Mark services traditional convenience retailers, grocers, mass merchandisers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.
Chiquita Brands International, Inc. is a leading international marketer and distributor of high-quality fresh and value-added produce, which is sold under the Chiquita® premium brand and related trademarks. The company is one of the largest banana producers in the world and a major supplier of bananas in Europe and North America. In June 2005, Chiquita acquired Fresh Express®, the U.S. market leader in value-added salads, a fast-growing food category for grocery retailers, foodservice providers and quick-service restaurants.
Source: Chiquita Brands International, Inc..