CINCINNATI (AP) — Chiquita Brands International Inc. and Groupe Danone SA are pairing up to market beverages based on Chiquita's Just Fruit In a Bottle line in Europe.
The joint venture announced Tuesday calls for the two companies to be financial and operational partners. Danone will manage the operation, which will have its headquarters in Paris. Danone, the French yogurt and bottled water company, will be the exclusive distributor of the line and other Chiquita-branded products in Europe.
A news release said that Chiquita will provide services for local sales, supply chain and marketing.
Terms of the deal were not disclosed, but Chiquita said it will receive a one-time cash payment for a 51 percent interest in the venture and to license its trademark to the venture.
The company expects the deal to be immediately accretive to earnings.
The deal will be carried out once it is approved by European regulators. It should be finished in the first half of the year.
The brand has been in Europe for four years in a dozen countries and has become the market leading brand of fruit smoothie there. Last year it generated 20 million euro, or $26.8 million dollars.
Chiquita said in a news release the venture will allow it to expand its branded fruit beverages more effectively to make profits.