Chiquita is making some important strategic changes that could ramp up its profitability, according to a note from analysts at Jefferies.
Here’s its plan:
A new salad strategy
Yes, Chiquita’s big in the salad business (it owns the Fresh Express brand), and the Jefferies analysts say that this latest move could “add significant profitability.”
Chiquita is shifting from solely selling branded packaged salads to a broader offering, which will include private label salads, whole head lettuce and organic salads.
It had to do something about its salad biz. Fresh Express has been hurting, and it contributed to a $16 million loss in Q4. Perhaps this restructuring will be the answer to its salad woes.
There are new products on the way that could make a big impact.
Chiquita showed the analysts its new “Fruit Chips” product, which is already available on Amazon. It’s a step toward the healthy snacks trend.
It has its eyes on high-growth European markets
The company’s banana distribution systems in Europe have been revamped, according to Jefferies. This means increased flexibility and reduced cost, and now, it’s ready to ramp up its presence in high-growth markets like Eastern Europe.
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