Press Coverage

Landec and Chiquita expand current banana licensing agreement and enter into new avocado license agreement

Tue Sep 25, 2007 8:32am EDT

LNDC and CQB announce that Landec's food subsidiary, Apio, Inc., has expanded its joint technology license and supply agreement with Chiquita, initially entered into in September 2004, providing Chiquita use of Landec's patented BreatheWay® packaging technology for Chiquita bananas. The expanded agreement includes additional exclusive fields for bananas. Further, as part of this agreement, Landec and Chiquita have entered into a new exclusive license using Landec's BreatheWay packaging technology for avocados... Under this agreement, in exchange for expanding the exclusive license fields for bananas and adding an exclusive license for avocados, the minimum gross profit amounts to Landec from the purchase of BreatheWay® packaging by Chiquita will increase a total of $2.1 mln over Landec's next two fiscal years to $2.9 mln in fiscal year 2008 and to $2.2 mln in fiscal year 2009. Both Landec and Chiquita currently expect that the purchases of BreatheWay® packaging by Chiquita in Landec's fiscal year 2009 will exceed the minimum purchase level of $2.2 mln and will continue to increase appreciably in subsequent years.