Week 10 In The Food Industry

http://www.reuters.com/article/idAFSGE62T0K720100330?rpc=44
UPDATE 2-Chiquita sees lower Q1 results, shares fall
Tue Mar 30, 2010 6:08pm EDT
Says Q1 hurt by weak banana demand, pricing
* Forms JV with Danone to market fruit beverages in Europe
* Says deal to immediately add to earnings
* Shares fall 3 pct after the bell (Recasts, adds details)
March 30 (Reuters) - Fresh fruit producer Chiquita Brands International Inc (CQB.N) expects to post "substantially lower" first-quarter results, hurt by weak European banana demand, sending its shares down 3 percent.
European banana volume fell 13 percent and pricing was about 11 percent lower in the first quarter compared with year-ago levels, the company said.
"European banana pricing was negatively impacted by the harshest winter weather in 30 years," Chief Executive Fernando Aguirre said in a statement.
Separately, Chiquita said it formed a joint venture with Danone (DANO.PA) to market fruit beverages in Europe -- a deal which it expects to help drive improvement in its results.
Chiquita will receive a one-time cash payment for a 51 percent interest in the venture with the world's largest yogurt maker, and expects the transaction to immediately add to earnings.
The company, which competes with Fresh Del Monte (FDP.N) and Dole Food Co Inc (DOLE.N), will license its "Just Fruit in a Bottle" beverage trademark to the venture.
The venture will be managed by Danone and headquartered in Paris as the exclusive distributor of Chiquita's "Just Fruit in a Bottle" beverage and all future Chiquita branded beverage products in Europe.
Chiquita's shares fell about 3 percent after the bell. They closed at $16.51 Tuesday on the New York Stock Exchange. (Reporting by Mihir Dalal in Bangalore; Editing by Gopakumar Warrier)