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Tropicana, Fort Myers citrus firm sign new deal — with 33% price hike


  • By Mark Gordon
  • | 8:10 a.m. June 13, 2024
  • | 2 Free Articles Remaining!
Ailco operates an agriculture and a land division.
Ailco operates an agriculture and a land division.
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Fort Myers agricultural and land management company Alico Inc. has signed a new three-year deal to supply citrus fruit to its largest customer: Tropicana.

The agreement, according to a statement from the publicly traded company, is effective June 5 through July 31, 2027. The agreement, the company adds, “sells the citrus fruit grown on approximately 65% of Alico’s currently planted acres to Tropicana Brands Group at prices per pound solids that are approximately 33% to 50% higher over the term of the contract than the average price for all the citrus fruit sold to Tropicana last season.” 

Company officials add that the agreement succeeds existing contracts set to expire at the end of July. Alico has another supply contract with Tropicana that remains in effect through the 2024-25 harvest season. 

“Alico is proud of the successful business relationship we have been able to develop with Tropicana Brands over the past decade and we are both committed to meeting the challenges facing the Florida citrus industry together with near-term patience and long-term focus,” Alico President and CEO John Kiernan says in the statement.

Alico Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. The company posted $39.84 million in revenue in 2023. 

 

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Mark Gordon

Mark Gordon is the managing editor of the Business Observer. He has worked for the Business Observer since 2005. He previously worked for newspapers and magazines in upstate New York, suburban Philadelphia and Jacksonville.

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