Fresh Express CEO says company 'excited' about acquisition
Fresh Express CEO says company 'excited' about acquisition
With the acquisition of Salinas, CA-based Fresh Express by Chiquita Brands International completed, the real work of melding Fresh Express into a Chiquita subsidiary can begin.
Fresh Express CEO Mark Drever told The Produce News June 30 -- two days after the sale was completed -- that Fresh Express employees "are genuinely excited" to be part of Chiquita. "It's seen as a positive development by Fresh Express employees, he said. "Chiquita and Fresh Express have complementary positions in the marketplace. Chiquita is strong in fruit, and Fresh Express is strong in value-added and the vegetable side, he said, adding that Chiquita and Fresh Express "will explore mutual opportunities. Both Chiquita and Fresh Express have a line of fresh-cut fruit products.
One of the bigger values that Chiquita brings is sourcing high-quality fruit that tastes great, Mr. Drever said. Sourcing quality fruit 12 months a year remains the single most difficult aspect in value-added fruit. "It's a learning process, he said, but Fresh Express "has made progress.
"All fruits are a challenge and every aspect of the supply chain is a challenge, Mr. Drever said. "The more perishable the product, the more difficult it is to handle. Value-added fruit is in its infancy and presents a challenge "for Chiquita or any other company, he said.
Mr. Drever said that the acquisition also should be positive for Fresh Express' specialty: fresh-cut salads. "Bagged salads have great growth in them, Mr. Drever said, adding that consumers considered "heavy buyers of bagged salads buy bagged salads only about 28 times a year. Talk of salads having matured as an industry is wrong, he said, pointing to canned soup as an example of a mature industry.
"I think Chiquita has an owner who understands our business, Mr. Drever said. "With Performance Food Group, there was not a great deal of understanding and fit.
Mr. Drever said that although PFG treated Fresh Express well, its investors had bought a broad-line foodservice distributor and didn't understand Fresh Express -- a value-added vegetable processor -- and its fit within Performance. "It was more an issue with the investment profile, Mr. Drever said.
While there may be no major operational changes in the near term, Chiquita's wheels are in motion. The transition to "Chiquita labels will depend on the markets and be a steady effort "that will take months, not weeks, Mr. Drever said. Any new products going out will have bear the "Chiquita name.
"Performance Food Group owned [Fresh Express] for three-and-a-half years, Mr. Drever said. "We know how to be a subsidiary of a major company. Mr. Drever thinks that Fresh Express customers "are taking a wait-and-see approach to Chiquita's ownership. "They're aware of the strength of the 'Chiquita' brand, Mr. Drever said. "Our customers are very pleased with Fresh Express in salad. We've told folks we're going to operate independently.
Fresh Express has a variety of fresh-cut fruit products ranging from eight-ounce snack size bowls to five-pound party trays. Product varieties range from watermelon to golden pineapple medley, a blend of fresh pineapple, cantaloupe, honeydew and red grapes.
This summer, Fresh Express has introduced a new seasonal berry melon medley blend containing fresh strawberries, melons and grapes. For the winter months, Fresh Express sources super sweet melons from Chile to ensure that customers have sweet, fresh-cut fruit when sweet melons are typically harder to find. Fresh Express' goal is to delight the consumer with consistently sweet, high-quality fruit all year long.
Fresh Express CEO Mark Drever told The Produce News June 30 -- two days after the sale was completed -- that Fresh Express employees "are genuinely excited" to be part of Chiquita. "It's seen as a positive development by Fresh Express employees, he said. "Chiquita and Fresh Express have complementary positions in the marketplace. Chiquita is strong in fruit, and Fresh Express is strong in value-added and the vegetable side, he said, adding that Chiquita and Fresh Express "will explore mutual opportunities. Both Chiquita and Fresh Express have a line of fresh-cut fruit products.
One of the bigger values that Chiquita brings is sourcing high-quality fruit that tastes great, Mr. Drever said. Sourcing quality fruit 12 months a year remains the single most difficult aspect in value-added fruit. "It's a learning process, he said, but Fresh Express "has made progress.
"All fruits are a challenge and every aspect of the supply chain is a challenge, Mr. Drever said. "The more perishable the product, the more difficult it is to handle. Value-added fruit is in its infancy and presents a challenge "for Chiquita or any other company, he said.
Mr. Drever said that the acquisition also should be positive for Fresh Express' specialty: fresh-cut salads. "Bagged salads have great growth in them, Mr. Drever said, adding that consumers considered "heavy buyers of bagged salads buy bagged salads only about 28 times a year. Talk of salads having matured as an industry is wrong, he said, pointing to canned soup as an example of a mature industry.
"I think Chiquita has an owner who understands our business, Mr. Drever said. "With Performance Food Group, there was not a great deal of understanding and fit.
Mr. Drever said that although PFG treated Fresh Express well, its investors had bought a broad-line foodservice distributor and didn't understand Fresh Express -- a value-added vegetable processor -- and its fit within Performance. "It was more an issue with the investment profile, Mr. Drever said.
While there may be no major operational changes in the near term, Chiquita's wheels are in motion. The transition to "Chiquita labels will depend on the markets and be a steady effort "that will take months, not weeks, Mr. Drever said. Any new products going out will have bear the "Chiquita name.
"Performance Food Group owned [Fresh Express] for three-and-a-half years, Mr. Drever said. "We know how to be a subsidiary of a major company. Mr. Drever thinks that Fresh Express customers "are taking a wait-and-see approach to Chiquita's ownership. "They're aware of the strength of the 'Chiquita' brand, Mr. Drever said. "Our customers are very pleased with Fresh Express in salad. We've told folks we're going to operate independently.
Fresh Express has a variety of fresh-cut fruit products ranging from eight-ounce snack size bowls to five-pound party trays. Product varieties range from watermelon to golden pineapple medley, a blend of fresh pineapple, cantaloupe, honeydew and red grapes.
This summer, Fresh Express has introduced a new seasonal berry melon medley blend containing fresh strawberries, melons and grapes. For the winter months, Fresh Express sources super sweet melons from Chile to ensure that customers have sweet, fresh-cut fruit when sweet melons are typically harder to find. Fresh Express' goal is to delight the consumer with consistently sweet, high-quality fruit all year long.
