Katie Platzbecker

Amanda Peters

Raghav Mehra

Andy Schwark

L O O K I N G F O R W A R D November 3,

2007

Background

Analysis

Recommendations

Implementation Plan

Question & Answer

Conclusion

Who are we?• The world’s largest producer and

marketer of fresh fruit, fresh vegetables and fresh-cut flowers

• The world’s largest producer of bananas and pineapples

• An industry leader in packaged fruit products, ready-to-eat salads and vegetables

• A responsible company that cares about Its customers and communities

Who are we not?• An industry leader in juice

sectors• A primarily specialty/organic

foods producer• A self-sufficient produce supplier• A produce retailer

Key Facts• Privately held since 2002• Maintains Food Operating Divisions in 38

countries around the world• Food Marketing Divisions are located in 76

countries• Some primary competitors include

Chiquita, ConAgra Food Service, Bruce Church, Lamb-Weston Inc.

With continually evolving consumer demands, how do we increase market share while maintaining profitability and brand integrity?

Integrating healthy products to appease new market demand

Critical successfactors drive

decision making

Creating efficient distribution

channels

Maintaining brandimage and quality

reputation

Maintain robustsupply chain

and distributionnetwork

Expand to include vegetable

and other nutritional blends

Continuecommunity

outreach and corporate aid

Incorporate more varied

exotic fruits intoproduction

Increase market share and control aspects of the

fruit market

• Health-Conscious is in!• High Demand for Natural, Preservative-Free Foods

–“Positive Nutrition”– Super Foods

• The Scene in Numbers:–65 % of Paneled Consumers Try to Eat More Healthily!–Demand for Super Foods Doubled from 2001 to 2011– Pomegranates: 500 % Increase–Soy Use Tripled from 2001 to 2006–Blueberry Sales: Up 132 %!

UK Superfood Sales

0 20000000 40000000 60000000 80000000 100000000

2005

2006

2007

Sales in British Pounds

Global Juices Market Value

45

46

47

48

49

50

51

52

53

Year 2001 Year 2002 Year 2003 Year 2004 Year 2005

$ B

illio

n

3.5 %

2.5 %

1.5 %

Continued Growth in Global Juice Market2005 Total Revenues: $52.5 billion

• EU Market: CAGR of 4.3% and $ 21.7 billion

• US Market: CAGR of 2.1% and $ 21.9 billion

• Success in nectar and fruit drinks• Higher demand for NFC• Market performance slated to accelerate

2.65 %

2.55 %

2.40 %

2.35 %

16%

13%

3%

3%65%

PepsiCo,IncThe Coca-Cola Co.Procter &GambleDel MonteFoodsOther

Global Juice Competition

Expand to new sectors

Introduce new products

Create an efficient supply chain

Build on Social Responsibility

• Organic Food• Positive Nutrition Movement

– All Natural, No Preservatives• Juices• Vegetable Juices

– Low calories– More Complete Nutritional Blend

• Price Differential

A Health-Conscious European Distribution Partner

• Distribution to New, Pro-Health Chains

• Exki: a Belgian organic food retailer/restaurant

• EU Entry Point: Antwerp

• High-End, Nutrition-Oriented Retailers

• The Fresh Market, Whole Foods, Publix Grocery Stores

• East Coast Concentration-facilitates supply chain management and maintains freshness

The Fresh Market Network…

• Organics have grown at a rate of nearly 20% per year for the last seven years.

• Market expected to expand from $26 billion in 2001 to $80 billion in 2008.

• Countries with higher disposable income tend to spend more on organic foods than poorer countries.

• US & EU make up 95% of organic food retail sales ($25 bn worldwide)

• Organic markets more mature in EU. Growth Rates are averaging 7.8%

• US growth rate has been more than 20% annually

Expand to new sectors

Introduce new products

Create an efficient supply chain

Build on Social Responsibility

Overall Rankings

New Product Decision CriteriaNutritional Value First Mover Advantage Production Capability Bi-products & Other Uses

Aca

iS

traw

berr

y G

uava

Jam

bul

Cus

tard

A

pple

Dra

gon

Frui

tR

ambu

tan

1

6

2

3

4

5

Country Ease of Doing Business in

Puerto Rico 1

Chile 2

Mexico 5

Peru 7

Jamaica 9

Colombia 12

Uruguay 18Dominican Republic

19

Argentina 22

Guatemala 23

Costa Rica 24

Honduras 25

Ecuador 27

1. Costa Rica

10. Greece

9. Belize

8. Ecuador

7. Spain

6. Chile

5. New Zealand

4. Dominica

3. St. Vincent & The Grenadines

2. Saint Lucia

Rank Territory

Markets

Sourcing

• Fewer Trade Barriers:– CAFTA or other FTA member– Greater Protection for Investments

• Countries with Existing Dole Presence– Contacts/Relationships– Lesser Overall Investment– Infrastructure In Place; Faster Shipping

• Climatic Restrictions– Limited Growth Regions

Expand to new sectors

Introduce new products

Create an efficient supply chain

Build on Social Responsibility

Reduce Inventory levels

High Quality Standards

Shorten Lead Times

Precise forecasting

Avoid inventory

obsolescence

Carbon Neutral Supply Chain

Customer Satisfaction

DOLE Foods

Reverse Supply Chain

• Costa Rica – World’s First Carbon Neutral Country by 2021

• First mover in this sector• Project with the Costa Rican government

to offset the company’s carbon dioxide emissions.

• Efficient transportation and changes to its agricultural processes

• Little to No Waste!• Ethanol Production: Discarded Husks

or Shells• Agricultural Fertilizers: Discarded

Shells/Seeds• Health/Wellness Sector:

– Seeds: rich in oils; soap production

– Roots/Bark: use in medicine• Diabetes/diarrhea treatment

Expand to new sectors

Introduce new products

Create an efficient supply chain

Build on Social Responsibility

• Corporate Philanthropy:– Nutrition Programs– Education/Adopt-a-School– Medical Welfare

• Independent Farmers• Environmental Care

– Carbon Neutralization

2008 2010 2012 2014 2016 2018

Marketing

Source Countries CAFTA/CR Ecuador Chile Brazil Other Amazon Basin

ProductsSeek

OpportunitiesOpen 3 Stores

Evaluate; Open up to 5 stores

35total

45 total

50totalMarkets

Supply Strategy58

total75

total100total

Finance

Sub-Contract Sub-Contract Joint Venture Joint Venture Acquisitions

Bulk Purchasing

Educational Ed/Health Taste/Quality. Price Commoditized

Juice Juice/Blends Blends/Fresh Assorted Mix Assorted Mix

US/EU Australia Japan/Asia. Middle East Africa

Mergers and Acquisitions

2006 2005 2004 2001Revenue 6,172 5,871 5,316 4,449

Dole Food Company, Inc.Income Statement

16.4%

9.5%4.9%Growth

2006 2005 2004Revenue 6,172 5,871 5,316 Cost of Goods Sold (5,290) (5,039) (4,581)Gross Profit $ 882 $ 832 $ 735 Gross Profit Margin 14.30% 14.17% 13.80%Net Profit Margin 1.40% 2.50%

Dole Food Company, Inc.Income Statement '000

Net Profit MarginsDel Monte

3.12%Chiquita (2.92)%

Long Term Debt

2001: $816, 124

2004: $1,837,000

Projected Revenue

$-

$2,000

$4,000

$6,000

$8,000

$10,000

'000 Revenue

                                                             

    

• Possible Joint Venture Endeavors/Acquisitions:– Costa Rica: Boletin Rambutan– Puerto Rico: Panoramic Fruit

• Dependent on Popularity and Supply Needs

Deliver

Sustain

Design DiagnoseIdentify

Identify key issues and decide which are the most relevant:

•Health food becoming new trend in the food market, replacing calorie counting

•Growing interest in Amazonian and other exotic fruits

•Potential supply chain inefficiencies

•Growing demand for socially responsible corporations

Sustain

A Health-Conscious Company That Puts Customer Well-Being First!

• Foundation of Dole Nutrition Institute • Goal: Eat to Live• R & D: Health Benefits• Nutrition Education: 5-A-Day Program

• The Dole Nutrition System• Serving Customer’s Holistic Nutritional Needs

• Health Positioning Marketing• Our FDA Message

Dole plays a crucial role in helping consumers eat healthier…

-- David H. Murdock

Dole is connected to healthy consumers…

• Reaching Out to Customers Online• Superfoods• Nutrition Institute

• Recipes• Resources• Nutrition News You Can Use

• California Health and Longevity Institute• Make a Nutritional Smoothie!

Diagnose the key issues with alternatives to mitigate any risk they pose to our company

•Keep a strong stake in the health food market and find new ways to grow our market share

•Identify Amazonian and exotic fruits we will include in our product mix

•Indicate areas in the supply chain that can be improved

•Ensure that our company respects our employees, the environment, and communities

DeliverDesign DiagnoseIdentify Sustain

Dole is a responsible corporation!

• Corporate Philanthropy:– Nutrition

Programs– Education/Adopt-

a-School– Medical Welfare

• Independent Farmers

• Environmental Care– Carbon

Neutralization

•Dole is a major producer of known superfoods

 

Ease of doing

business

Starting a

Business

Dealing with

Licenses

Employing

Workers

Registering

Property

Getting Credit

Protecting

Investors

Paying Taxes

Trading Across Borders

Enforcing

Contracts

Closing a

Business

Puerto Rico 1 1 28 4 23 3 1 4 19 11 5

Chile 2 8 10 14 2 7 11 3 4 4 16

Mexico 5 13 6 24 12 7 11 20 12 10 2

Peru 7 18 23 26 3 5 2 11 10 22 15

Jamaica 9 2 14 5 20 25 14 29 17 15 1

Colombia 12 17 11 19 10 16 4 27 22 25 4

Uruguay 18 28 29 16 28 3 17 19 28 12 6

Dominican Republic 19 15 14 21 19 5 23 22 3 9 23

Argentina 22 20 30 25 17 7 19 23 23 1 11

Guatemala 23 23 31 20 1 14 23 18 25 14 14

Costa Rica 24 19 24 18 5 7 28 26 7 24 17

Honduras 25 26 13 22 15 1 27 25 21 23 18

Ecuador 27 27 9 27 11 20 23 7 29 3 20

Country of Origin

Country of Sale

PackagingStoring,

Ripening & Distribution

Transportation

Cultivation Harvesting

Dole Supply Chain

Lead Time ( 10 days ) Costa Rica to USA

Lead Time ( 10 days ) Costa Rica to Europe

Carbon Neutral Supply Chain• Pineapple and Banana Supply Chain

(Costa Rica)• Growing, packaging, transporting,

distributing• Main markets in Europe• Costa Rican government's call to be

a carbon neutral country by the year 2021

The Juice Niche Market