A new long-term agreement with bottled orange juice producer Tropicana Brands Group will extend a citrus supply agreement, previously expiring in July 2024, until 2027.
Under the agreement, Alico Inc. will continue to supply citrus fruit cultivated across approximately 65% of its current acreage to Tropicana Brands Group for the next three years. Tropicana is the major customer for the supply of Alico’s citrus fruit.
Notably, the contract stipulates prices per pound solids that reflect an increase of 33% to 50% compared to average prices from the previous season's sales to Tropicana. This strategic move aims to enhance revenue streams while securing a stable market for Alico's citrus produce. At the same time, such price increases should be expected to be reflected in the final bottled products’ selling price.
John Kiernan, president and CEO of Alico, expressed enthusiasm about the extended collaboration with Tropicana, a relationship that spans over a decade. "We are delighted to announce the extension of our partnership with our largest customer for an additional three years," Kiernan remarked. "Alico values the strong business rapport we have cultivated with Tropicana Brands, and we are both committed to navigating the challenges within the Florida citrus industry with steadfast determination and foresight."
In addition to this newly announced agreement, Alico maintains an ongoing supply contract with Tropicana that remains effective through the 2024-25 harvest season.
