Chiquita Brands International said it will increase marketing spend by US$30m this year, despite recording a net loss for the first quarter and cutting its full-year revenue outlook.
Speaking at the firm’s earnings conference yesterday (29 April), chairman and CEO Fernando Aguirre told analysts that the spend is a 50% increase on the firm’s 2009 spend.
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“We expect 2010 will be another good year in which we continue to strengthen our business and bolster shareholder value,” Aguirre said.
He added: “With the marketing investment we are also increasing not only investment in North America but in Europe where we have a long track record of supporting the brand and the brand premium. So a portion of that is going back in, re-supporting what we are trying to do with our core customers.”
Aguirre said the firm is also poised to expand its existing product platform into new geographies and channels.
“We believe that the investments we are making will broaden and diversify our revenue and earnings and will help us to sustain profitable growth,” the CEO said. “If a good opportunity comes by we will clearly evaluate it.”
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By GlobalDataFor the three-month period the company booked a loss from continuing operations of US$4m compared to a profit of $22m in 2009.
European banana demand and pricing were negatively impacted by the harshest winter weather in 30 years, the firm said yesterday (29 April), and depressed economic conditions, which have affected commerce across Europe.
Quarterly sales decreased 4% year-over-year to $808m due to lower pricing and volume in the company’s core European markets and lower retail and foodservice volume in salads.
