When a new policy on banana imports in 1993 by the European Union, Chiquita Brands International, the world’s largest banana distributor observed decline in sales and profits implemented. The policy of Council Regulation (EEC 404/93), uses a new tariff and quota system to support the import of bananas European territory and significantly reduce Latin American bananas, Chiquita’s primary business. As a result, Chiquita Achieves losses of $ 400 million zwischen 1992 and 1994. To combat … Read more »

When a new policy on banana imports in 1993 by the European Union, Chiquita Brands International, the world’s largest banana distributor observed decline in sales and profits implemented. The policy of Council Regulation (EEC 404/93), uses a new tariff and quota system to support the import of bananas European territory and significantly reduce Latin American bananas, Chiquita’s primary business. As a result, Chiquita Achieves losses of $ 400 million zwischen 1992 and 1994. To combat the EU policy files Chiquita § 301 petition with the U.S. Trade Representative. But Linde CEO Keith knows that a successful 301 investigation can only be achieved in the medium to long-term results. In 1995, Chiquita before the immediate need to improve the company’s bleak financial situation.
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from
Terence Mulligan,
Debora L. Spar
Source: HBS Premier Case Collection
22 pages.
Publication Date: Oct 17, 1996. Prod #: 797 015 PDF-ENG
Chiquita Brands International (A) HBR case solution