Bananas "recession resistant" says Chiquita

Fruitnet.com
07 January 2009

Group CEO Fernando Aguirre has called bananas "great value" during difficult economic times across the globe

Chiquita Brands International can rely on sales of bananas throughout the global economic crisis, according to the group's chief executive officer Fernando Aguirre.

In a conference call, he described the fruit as "recession resistant" due to its low prices in stores, Cincinnati Business Journal reported.

"Bananas are a staple and a great value compared with other food items," he said. "A banana sells on average for only US$0.30 (€0.22). Nowhere else in the grocery store can consumers find such great value."

BB&T Capital Markets analyst Heather Jones said that she felt the group was in a strong position to ride out the economic downturn.

“Banana demand should also benefit from higher food at-home consumption as its exposure to retail is meaningfully higher than its exposure to food service,” she said.

Morgan Joseph analyst Dean Haskell added that the group could boost profits by up to US$0.46 (€0.34) per share annually when an African banana sourcing deal, agreed with companies representing private growers in Angola and Mozambique in March, comes into force.