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  • October 1996 (Revised September 2007)
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Chiquita Brands International (A)

By: Debora L. Spar
  • Format:Print
  • | Pages:22
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Abstract

When a new banana import policy is implemented in 1993 by the European Union, Chiquita Brands International, the world's largest banana distributor, watches its sales and net income plummet. The policy, Council Regulation (EEC 404/93), uses a new tariff and quota scheme to support the import of European territory bananas and significantly reduce Latin American banana imports, Chiquita's primary business. As a result, Chiquita sustains losses totaling $400 million between 1992 and 1994. To combat the EU policy, Chiquita files a Section 301 Petition with the U.S. Trade Representative. Yet CEO Keith Linde knows that even a successful 301 investigation can produce only medium-to long-term results. In 1995, Chiquita still faces the immediate necessity of improving the company's grim financial position.

Keywords

Plant-Based Agribusiness; Trade; Government and Politics; Agriculture and Agribusiness Industry; Latin America; European Union

Citation

Spar, Debora L., and Terence Mulligan. "Chiquita Brands International (A)." Harvard Business School Case 797-015, October 1996. (Revised September 2007.)
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About The Author

Debora L. Spar

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