1

Chiquita Brands

October 15, 2013

Table of Contents

• Chiquita Brands International Overview

• Bananas / Pineapples

• Chiquita Fruit Solutions

• Salads and Healthy Snacking

• Forecasting

• Tools

• Short Term

• Long Term

• Questions & Answers

• Incorporated in 1899

• Operations in 70 countries

• 20,000 employees globally

• Net Revenue of $3.1 billion

Improving Lives - by producing healthy and convenient foods that taste

great while creating opportunities for our employees to grow and thrive.

Loving our Planet - continually reduce our environmental impact and

ultimately contribute to a world capable of effectively sustaining future

generations.

Leading our industry - lead the industry and sustain profitable growth by

creating value for our customers, consumers, communities, and other

stakeholders.

Chiquita’s Vision

Active member of SmartWayTM Green Transportation Program, 96% of miles

MIT Supply Chain Carbon Footprint Partner, Most comprehensive carbon footprint assessment for

bananas in North America, extending to Value Added Salads

+20 years Rainforest Alliance Partnership since 1992, 1st agricultural company to engage with

Rainforest Alliance, 1st pilot farms certified 1994, Only banana supplier with 100% certified owned-

farms since 2000

Chiquita Nature and Community Projects

+100 hectares of biological corridors & protected areas since 2005, released 20,000 leatherback

turtle hatchlings to the sea.

Sus

tain

abili

ty

Recognized for industry’s most rigorous food safety programs

Unprecedented $2million funding of E.Coli 0157:H7 pathogen research (Alliance for Fresh Food

Safety)

FSSC 22000 certification across North America facilities

Introducing FreshRinse™— A Scientific Breakthrough in Food Safety & Quality for Fresh Produce

Recipient of the International Association for Food Protection Black Pearl award, the industry’s

most prestigious recognition of Corporate Food Safety & Quality Excellence

100% GlobalGAP certified owned banana-farms since 2005

Labo

r F

ood

Saf

ety

OSHA milestones: 2010 Total Injury Rate = 51% lower than national average; our Salinas facility

worked 3 Million hours without a lost time incident

+10 years. IUF/COLSIBA Framework Agreement (2001), industry landmark NGO collaboration

100% SA8000 certification of owned-farms since 2004

Healthy Snacking Bananas Fresh Express Fruit Solutions

• Largest producer of

packaged fresh sliced

apples in the U.S.

• Serve top U.S. limited

service restaurants

• Strategic partnerships

with large branded

food companies

• 13+ Billion sold/year

• Most recognized brand: EU

premium pricing

• #1 segment share EU

• #1 segment share in US

supermarkets

• Most diverse geographic

sourcing in industry

• Largest banana puree

producer globally

• Diverse array of other

tropical ingredients

• Vertically integrated for

sustainable sourcing

• One-of-a-kind product

development for tropical

ingredients

Chiquita® is one of the world's most recognized brandsLearn how your brand can benefit from

our quality, taste, and nutrition promise.

Beech-Nut is a registered trademark of Beech-Nut Nutrition Corporation.

Licensing

Licensing@chiquita.com

Chiquita® is one of the world's most recognized brandsLearn how your brand can benefit from

our quality, taste, and nutrition promise.

Beech-Nut is a registered trademark of Beech-Nut Nutrition Corporation.

Licensing

Licensing@chiquita.com

• #1 Salad Brand in US

• Significant food service

offerings with Top QSRs

• Consumer-based

innovation

• Diverse sourcing and

production network

• Quality & Velocity

advantages

Chiquita Brand

Brand Sourcing and Growing Value Chain Innovation

• 130 MM boxes annually

• Improved quality by 15%

in 2 yrs (reduced scarring)

• Mexico, Honduras,

Guatemala, Nicaragua,

Costa Rica, Panama &

Ecuador

• Only Chiquita offers

Low Temperature

Ripening™ Bananas

• 30% Reduction in

defects

• Improving harvesting

ergonomics

• Temperature management

• Fruit protection

• Reduce shrink

• Ripening cycles

• Gassing

• Forecasting

• Timing of color

to maximize sizes

• 86% household

penetration

• Chiquita is the #1

Preferred Banana Brand!

• Over 50% of households

purchase bananas at

least once a week

Denver

Los Angeles

Banana Distribution Network

Port Everglades

Port Hueneme

Wilmington

Gulfport

Freeport

Chiquita Operated Distribution Centers

Customer DCs with Chiquita On-Site Ripeners

Tipp City

Atlanta

Boston

Bethlehem

Lake City

Ft. Lauderdale

Lansing

Newport

Chiquita Operated Distribution Centers w/ CTG

Cedar

Rapids

Gulfport Chiquita Port Operations

Customer DCs Certified as Chiquita CTG Distributors

Indianapolis

Houston

Montreal Seattle

Phoenix

Consumer Behavior

Per capita annual consumption in US is 27-29 lbs.

Color 5-6

• 70 % purchase

preference

• 85% consumption

preference

Banana Attributes

Color arrival

• at warehouse - stage 1-2

• at stores - stage 2-3

• on display -stage 3- 5

• consumption -stage 4-6

Color Stage 5

Size

• Finger length min 8 inches

• Grade min 8/max 18

• Clusters per box max 18

Chiquita Pineapple

All of Chiquita Pineapple growers are accountable to Chiquita’s strict food safety and Good Agricultural Practices.

Chiquita To Go >Extended Shelf-life bananas

Premium single-serve Chiquita Bananas

• Hand selected by size & shape

• Consistently ripe and ready to eat

Breakthrough packaging technology

• Exclusive Stay FreshTM Pack naturally extends storage and

shelf life while providing a greater tolerance for a wider range of

temperatures.

• Retail outlets that receive deliveries once or twice a week can

have perfectly ripe bananas every day.

A profitable, fresh OPPORTUNITY

• Bananas are the #1 grocery SKU and the #1 consumed fruit.

• 42% of banana consumers say they would eat MORE bananas if

they were made available wherever and whenever they wanted

one!2

• Yet, 93% of bananas are currently sold through traditional

formats.

1 – 2005 US Economic Research Service

2 – 2004 Strategyn Research

RTE Concepts

Fresh Express

“Wheel of Fresh” Video

Expertise &

Knowledge

Consumer Insights

Dedicated R&D

Dedicated Quality & Food Safety Category Mgmt

Technology

& Sourcing

Raw Product

Freshness

Packaging & Film

Voice Picking

Proprietary Tools

Pilot Plant

Trial Farm

Test Kitchen

Merchandising Laboratory

Sensory Lab

Packaging Lab

Strategic

Relationships

Seed Development

Growers

Customers

Sourcing Manufacturing/Logistics Food Safety & Quality Innovations

• Scale: 500+ acres/wk

• Reduce time to

market, fresher

product to customers

• Geographically

diverse to mitigate risk

• Conventional &

Organic leafy green

expertise

• 5 campuses: 900K sq ft of

production and warehouses

• 60+ production lines; 2300+

employees

• Best in class cold chain

• Packaging: Bags,

clamshells, trays, & cartons

• Delivered logistics experts

• Strictest standards in

industry

• Integrated GAPS

• MultiPoint Certification

• Integrated HACCP

• KnowledgeShare

• SMARTrack

• VeriCheck

• RealTimeReponse

• PhD expertise

• Nutrition, Convenience,

and Freshness Focus

• Rigorous Stage-Gate

development process

• Trial Farms, Pilot Lines

• Sensory, Technical,

& Merchandising labs

Growing

9-12 wks

Range code date delivered to customers: 8 -12 days depending on location and lettuce type

FEX

Warehouse

1-2 days 3 days or less!

From Harvest to Bag FEX WHSE to

Customer DC

1-2 days

>60% of customers place orders day of ship!

From field to customer DC in 3 to 7 days!

32o-37° Product Temperature

19

Controlled gassing 5%

Cut to cool time < 4 hours

Temperature 34F

Arrival at Manufacturing Facility

– Strict Quality Spec

Compliance

Cutting Specifications

Quality cut and size

Washing Process

•Dwell Time Submersion

Concentration

Rinsing Specifications Dryer Specifications

Time Speed Weight

Packaging Weight Control

Bag Atmospheres Specs

=

Raw Product Strict Quality

Compliance in Fields

Seal Integrity Testing Temperature Compliance Highest Quality Freshness

Salinas

Huron

Imperial Yuma

•Huron 3/18 to 4/30

•Salinas 3/25 to 11/22

•King City 4/1 to 11/15

•Santa Maria 4/1 to 11/22

•Colorado 7/8 to 9/12

•Huron 10/13 to 11/22

•Yuma 11/10 to 5/20

•Imperial 12/24 to 3/20

Leafy Green Growing Regions &Timing

Mexico

Sourcing Regional Plants

Chicago

-

-

Salinas

Grand Prairie

Morrow

Huron

Yuma

Salinas

Raw Growing Regions

Colorado

SMV

Imperial

Florida

Canada

Harrisburg

All Regional Plants

Primary Supply

Product Innovation

What’s the Idea? • Higher Nutritional Value with Shredded Green

Leaf Lettuce!

Consumer Insight • Increasing desire for both nutrition & convenience

Rationale: • Behind price, Nutrition listed as 2nd most

important product attribute when choosing

shredded lettuce1

• ⅔ of consumers perceive Green Leaf Shreds to

have greater nutritional value than Iceberg1

Excellent Source of Vitamins A and K

• 20% of consumers would purchase Green Leaf

Shreds in addition to Iceberg Shreds1

taste

health convenience

More nutritious

shredded lettuce!

Source: 1Quantitative online Green Shred vs. Iceberg Shred concept test, October 2012

What’s the Idea? • New Kit featuring a classic American

dressing: Caesar

Consumer Insight

• Variety seeking category

• Increasing desire for convenience

Rationale: • Kits is a large and fast-growing segment

• Top-scoring new Kits ideas among more

than 12 concepts tested 1

• Above-average Liking and Purchase Intent

scores for both concept and product2

• Based on key food macro-trends: Increased penetration of Bacon in grocery &

restaurants

Mainstream acceptance of comfort foods

health convenience

taste

Source: 1Quantitative Conjoint concept testing, Insights Consulting, Nov 2012; 2Blind Quantitative Product Taste Test , Tragon Research, Mar 2013

What’s the Idea? • 2 new chopped salad Kits featuring

ethnic flavor profiles

Consumer Insight • Variety seeking category

• Increasing desire for convenience

Rationale: • Chopped salads a growing trend

on restaurant menus

• 70-80% Incremental to current

kits1

• Above-average Liking scores for product1

• Provides a variety of unique

textures & tastes

health convenience

taste

What’s the Idea? • Single Serve multi-packs of VAS

Consumer Insight • Consumers want lettuce to stay fresh longer at home to

avoid throwing it away or “wasting it”2

• Small households don’t purchase VAS as often because

they can’t finish a bag all in one meal and don’t want the

rest to go “bad”

Rationale: • Currently 70+ million US households with 2 people or less

– and growing1

• Key consumers are willing to pay a premium for the

freshness & convenience of single servings2

• Consumption by singletons contributes $1.9 trillion to the

economy annually2.

• 46% of all adult eating occasions happen alone, up 7%

since 20103

Smaller portions keep salad

fresher at home longer

taste

health convenience

• Baby Spinach

• 50/50 Mix

Sources: 1) US Census Data, 2012. 2) Consumer Focus Groups, Chicago/Charlotte, December 2012

• Hearts

• Italian

What’s the Idea? • Salad mix with baby kale as a core ingredient

Consumer Insight • Consumers are looking for more nutritional

“bang for the buck” salad greens.

• 67% of consumers are purchasing food that is

good for their health and wellness

• 61% of consumers are purchasing foods that

are higher in nutrients

• Consumers are variety seeking eaters

Rationale: • Kale has been lauded by many nutritionists as a

powerhouse “Super Green” and is especially

high in antioxidant vitamins A, C, and K1

• Kale is growing +152% 2

Convenient blend incorporating

powerhouse super greens!

convenience

taste

health

Sources: 1) WebMd.com; 2) IRI L52 weeks ending 3/24/12

convenience

taste

health

What’s the Idea?

• Convenient Greens that consumers can use to

create their smoothies and juices or incorporate

into other non-salad uses.

Consumer Insight

• Consumers are interested in adding power

greens to their diets in convenient forms

Rationale:

• Juicing has become a $5B industry and is

projected to grown between 4% and 8% a

year.1

• Sales at all U.S. juice bars & smoothie chains

have nearly doubled since 2004, and totaled

$2.04 billion in the year ended June 30, 2012.2

• Many credit the 2010 documentary Fat, Sick

and Nearly Dead, which followed Australian Joe

Cross through his juice fast in his quest for

health for the recent surge of interest in home

juicing. Sources: 1) Barron’s 2) Juice Gallery Multimedia

Line up of Greens for

non-salad usage to

expand VAS category!

Product

Benefits

Being

Explored

Unique Varieties: i.e. Unique combination of fruits, nuts, dressings, leaves

Superior Taste: i.e. Grilled Chicken, Roasted Chicken

Ingredient Tray – Target $3.99 SRP

Exploratory Objectives: • Remove French translation - English-only copy

• Incorporate design palette that better conveys organic

• Minimize Fresh Express logo presence – FEX as “endorsement”

• US adults are heavy snackers: 98% snacks on a daily basis and multiple times (2.3) a day

• Relatively high incidence of fresh fruit and bananas as snacks: resp. 78% and 66% consumed

this in the past month.

• Across all snacking occasions fresh fruits 11% and bananas 6%.(Lots of room to grow Healthy Snacking)

• The largest producer of packaged fresh sliced apples in the U.S. (30 Million lbs annually)

• Produced and shipped in 3 Plants, (Salinas, CA. , Streamwood, IL., and Morrow, GA.) and can also forward ship from Grand Prairie, TX, and Harrisburg, PA enabling national supply to our Customers.

• Now major supplier of “peeled” apples in Food Service & Retail channels.

• Continuous updates of Packaging and SKU Offerings.

• Ongoing research & qualification for new fresh product offerings.

Chiquita Healthy Snacking >Single-serve Healthy Options

Snacking Insights

Chiquita Advantage

Chiquita Bite Singles

• Apple Bites • w/ and w/out caramel

• w/ cinnamon crème

• Apple Grape Bites

• Carrot Bites w/ Ranch

• “NEW” • Peeled apple slices

• Apple slices with yogurt dip

KEY BENEFITS:

• Fresh, Great Taste • Consistent quality and taste

every time

• Fresh Convenience • Selecting, cleaning, cutting

and packing

• Single serve, Some with dipping sauce.

Tools

• PRMS

• Logility

• Short Term

• Long Term

• Synectics Account Review (TPM)

• Demand Consensus Template

NETWORK OPTIMIZATION

BUSINESS INTELLIGENCE

SAILS

Strategic Analysis of Integrated Logistics Systems

Network Design, & Optimization

Business Intelligence Cross-Platform Data

Warehousing, Analytics, & Dashboards TMOD (Transportation Modeler)

Pre-Freight Optimization & Simulation

Complimentary Tools

MS Excel

MS Access

MS Solver

Misc Database Utilities SaaS Based TMS

Carrier Assignment /Tendering, Route

Optimization, Freight Confirmation, & Freight

Settlement

TRANSPORTATION

Voyager Demand Planning

Customer Sales Forecasting

DEMAND PLANNING

PRMS ERP System

Order mgt, network replenishment, plant

scheduling and materials planning

Integrated ERP

Logility Levels

Pyramid based forecasting

SKU --- FEX Plant (56318 – Atlanta)

SKU --- Customer Ship-To (56318 - 300)

SKU (56318)

Sub-Segment (Blend)

Type Code (Retail)

Short term Forecasting

37

Short Term Planning

Critical for tactical planning

Limited flexibility to reschedule resources

• Incoming raw product, production planning, etc

Inaccurate forecast potentially means:

• Losing the sale

• Losing a customer

• Too much inventory, D&D, wasted product

• Transportation Planning

• Other inefficiencies

38

Short Term Planning, What Do We Look At?

Important factors

• Seasonality

• Holidays

• Promotional Activity: ~40%

• Day Weighting

• Production/Transportation Calendars

• Segment Growth / Trends

• Safety Stock and forecast

variance

Short Term Forecast Process

Broker submits promotion into TPM

(30 days out)

Customer Service Planner will review plan content

for accuracy

CSP forecasts volume and/or verifies forecasted volume that Broker may

have entered

(17 days out)

CSP will confirm ad with buyer

(10 days out)

CSP monitors volume, Suggested vs Actual, makes adjustments

Bi-weekly forecast accuracy meetings with

Customer Service Managers and Supervisors

40

Logility, Short Term Planning

• 0 to 45 Days

• Passed into

PRMS nightly

•TPM overrides

with Promo

Volume

• Weekly

system forecast

recalculation

•Logility DRP

for daily

breakout

41

Food Service Promotional Planning

Promotion was run in week 27.

•Demand came in 23% above forecasted volume

• The idea of this promotional S&OP analysis is to gauge a

similarly run promotion against an upcoming one.

•Using this example, we would be forecasting 22,458 if it

were run next week.

Below illustrates the order behavior of the five weeks

leading up to the promotion, 1st week of promotion (6) then

2 weeks following.

Note: spike in volume (week 6), then fallout below where

the demand had been trending the prior to the promotion.

42

Daily Demand Pull / Promotion

Promotion started on Thursday July 4th.

•Promotional lift saw exclusively on Tuesday, or two days before the start

of the promotion.

43

Retail Distribution

Long term Forecasting

45

S&OP Stakeholders

• Forecasting

• Finance / Executive

• Business Management & Marketing

• Purchasing / Ag Ops

•Transportation

• Sales

S&OP Process Horizon Focus

0 3 6 9 12 15 18-24

Months

Start HereBusiness Management

monthly review meeting

Week 3

Update Product Supply and Financial Forecast, as

needed

Analyze the product supply, financial and statistical data

change from last monthEngage Sales and CS

Week 3

Business Management and Finance pre-meetings

Week 3

Highlight changes, new items, forecast

recommendationsWeek 4

Demand ConsensusMeeting with S&OP group

Friday Week 4

The S&OP

group agrees on the

forecast volume for financial LEand product supply LE

Week 1

Summarize and communicate the agreed

upon decisions and final LE number for the S&OP group

Wednesday Week 1

Ag Ops Team query the data from Logility and MRP

databaseFriday Week 1

Ag Ops Team uses the query to pull the MRP pounds

requirement for the Rolling Forecast MeetingThursday Week 2

Finance Team query the data from Logility database

Thursday Week 1

Finance Team reviews the data and refers any question

to the long term Demand Planning Team

Thursday Week 1

After all questions have been resolved and/or

changes made, the data is loaded into BPM

Friday Week 1

Demand Consensus

Process

Total Segment

Budget Current LE YAGO Actual

Current Frcst

+ Adj

Jan 14,435,358 14,472,465 13,613,879 14,472,465 14,472,465 37,107 0.3% - 0.0% 858,586 5.9%

Feb 16,372,538 15,539,738 16,153,173 15,539,738 15,539,738 (832,800) -5.1% - 0.0% (613,435) -3.9%

Mar 20,720,909 20,901,548 19,527,927 20,901,548 20,901,548 180,639 0.9% - 0.0% 1,373,621 6.6%

Apr 18,284,376 18,584,091 17,324,693 18,584,091 18,584,091 299,715 1.6% - 0.0% 1,259,398 6.8%

May 18,595,947 18,652,833 18,152,681 18,652,833 18,652,833 56,886 0.3% - 0.0% 500,152 2.7%

Jun 23,144,832 21,664,444 21,697,938 21,664,444 21,664,444 (1,480,388) -6.4% - 0.0% (33,494) -0.2%

Jul 18,427,644 16,808,258 17,442,075 16,808,258 16,808,258 (1,619,386) -8.8% - 0.0% (633,817) -3.8%

Aug 18,083,865 16,959,904 17,049,665 16,959,904 16,959,904 (1,123,961) -6.2% - 0.0% (89,761) -0.5%

Sep 20,903,231 19,835,504 20,955,892 20,872,624 (30,607) -0.1% 1,037,120 4.9% (83,268) -0.4%

Oct 16,639,860 16,604,497 16,525,669 16,647,192 7,332 0.0% 42,695 0.3% 121,523 0.7%

Nov 15,531,441 15,877,099 16,575,078 16,018,235 486,794 3.1% 141,136 0.9% (556,843) -3.5%

Dec 17,310,411 18,295,371 19,681,552 18,508,880 1,198,469 6.9% 213,509 1.1% (1,172,672) -6.3%

FY 218,450,412 214,195,750 214,700,222 143,583,281 215,630,211 (2,820,201) -1.3% 1,434,461 0.7% 929,989 0.4%

Budget Current LE YAGO

Variance

Demand Consensus Template

• Budget

• Current LE

• Year Ago

• Current Fcst + Adj

• Variance In Units

• 12-count cases

• Regular cases

• Lbs

By Percentage

Customer A

Budget Current LE YAGO Actual

Current Frcst

+ Adj

Jan 4,706,815 5,027,476 4,253,887 5,027,476 5,027,476 320,660 6.8% - 0.0% 773,588 18.2%

Feb 5,123,800 5,165,497 4,822,439 5,165,497 5,165,497 41,697 0.8% - 0.0% 343,058 7.1%

Mar 6,701,802 6,730,451 6,290,269 6,730,451 6,730,451 28,650 0.4% - 0.0% 440,182 7.0%

Apr 6,608,795 6,940,632 5,385,479 6,940,632 6,940,632 331,837 5.0% - 0.0% 1,555,153 28.9%

May 6,546,441 6,897,596 5,788,734 6,897,596 6,897,596 351,155 5.4% - 0.0% 1,108,862 19.2%

Jun 8,186,105 7,868,009 6,720,464 7,868,009 7,868,009 (318,096) -3.9% - 0.0% 1,147,546 17.1%

Jul 6,649,456 6,105,723 5,625,874 6,105,723 6,105,723 (543,734) -8.2% - 0.0% 479,848 8.5%

Aug 6,052,303 5,983,249 5,567,828 5,983,249 5,983,249 (69,054) -1.1% - 0.0% 415,421 7.5%

Sep 6,911,312 6,892,666 6,927,650 7,330,430 419,118 6.1% 437,763 6.4% 402,780 5.8%

Oct 5,476,877 6,167,531 5,578,798 6,166,752 689,875 12.6% (779) 0.0% 587,955 10.5%

Nov 5,131,114 5,952,677 5,903,968 5,932,607 801,493 15.6% (20,070) -0.3% 28,639 0.5%

Dec 5,806,975 6,977,940 6,527,170 6,972,517 1,165,542 20.1% (5,423) -0.1% 445,347 6.8%

FY 73,901,796 76,709,447 69,392,561 50,718,633 77,120,939 3,219,143 4.4% 411,492 0.5% 7,728,378 11.1%

Variance

Budget Current LE YAGO

Customer Specific Templates

Thank you!

Questions?