Before 1970, Chiquita Brands was known as the United Fruit Company, one of the most storied and controversial businesses in the history of the Americas. Founded through the merger of four banana importing companies in 1899, United Fruit played a key role in the CIA-sponsored overthrow of Guatemala's democratically elected government in 1954. It also assisted in the attempt to topple Cuba's Castro regime in 1961. Chiquita's name has been additionally tainted by alleged preferential treatment by the Clinton Administration. With its heavy involvement with any Latin American country that was friendly to its policies, United Fruit gave birth to the term "banana republic." Even in 1996, United Fruit - then renamed Chiquita - evicted 100 Honduran families and razed their homes after declaring the land infertile.

Fruits and Fabrications

Today, Chiquita Brands International, which takes its name from the calypso jingle of the 1950s, is the world's largest marketer and distributor of bananas, which account for 60% of the company's sales. After experimenting with diversified holdings in fast food and meat operations, Chiquita now focuses exclusively on fresh fruits and vegetables such as mangoes, citrus, avocados, asparagus, and potatoes. It also produces a number of processed and canned foods such as ready-to-eat salads, oil products like margarine and shortening, and juices like those under the brand, "Naked Juice."

Euro-yellow

Historically, Chiquita has been hurt by a European Union trade restriction on Latin and South American bananas, but the company has since challenged EU's import ban through the World Trade Organization. In July 1998, a reporter from the Cincinnati Enquirer made headlines after breaking a story that claimed Chiquita executives were using their continued influence in Latin America in unethical ways. The reporter was fired for stealing Chiquita voicemail messages, and the paper retracted its story, but the details of the story have not yet been substantively challenged.

Soup's On!

Chiquita experienced Aussie luck in 1998. Chiquita Brands South Pacific purchased the fresh mushrooms operation of the Campbell Soup Company. The acquisition marked Chiquita's rise down-under: it became one of Australia's largest horticultural companies. Following the 1998 purchase of Blueberry Farms of Australia, Chiquita Brands South Pacific also listed on the Australian Stock Exchange. By most standards, Chiquita seemed to be moving onward and upward. It also continued its quest for emerging markets, especially focusing on China and Eastern Europe.

Slipping on the Peel

In 1998, Hurricane Mitch brought Chiquita to its knees. The destructive storm dealt damaging blows to Central America's banana-rich countries. Honduras alone, which represents nearly 20% of the world's banana supply, reportedly lost 70% of its crop. Chiquita, which has 35% of its banana production in that country, is still trying to cut its losses.

Ripe for a Rebound?

Chiquita kept itself from going bananas over the Central American crisis by increasing its industry in Asia. The lower Australian dollar helped Chiquita Brands South Pacific Ltd. strike a $1 million-a-year contract with Asia. The company, which is majority-owned by Chiquita Brands International, plans to ship the fruit from Queensland to a Singaporean fruit importer. In mid-2000, the company announced that it would double its size in the South Pacific.