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Chiquita Brands International

Case Questions:

1. How strong was Chiquita Bananas before the trade war began?

2. Why was Chiquita vulnerable to trade barrier?

3. What should Chiquita do now?

T. Mulligan, D.L. Spar. "Chiquita Brands International." (Harvard Business Case 9-797-015)

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Jayant Kumar

How strong was Chiquita Bananas before the trade war began?
Chiquita was started by Captain Lorenzo Baker; commander of the fishing boat Telegraph in the year 1980 with only 160 bunches of bananas. He first sold the bananas to the North American consumers at $2 per bunch. Based on the response he decided to carry on this business by buying bananas from Jamaica and unloading it to the port of Boston. There in Boston, Andrew Preston, an agent of Seaverns & Co. used to sell the bananas on commission. The business was profitable and due to this Baker and his partners including Preston decided to form a company calling it as Boston Fruit Company to sell the bananas throughout New England. With increasing profits and sales Boston Fruit Company merged with its competitor to form a new company United fruit company in the year 1899. During its operation the company changed its name several time to finally call it Chiquita Brands International. In the 91 years of ...