| 1848 |
Jan. 19.Minor Copper Keith is born in Brooklyn,
New York |
| 1870 |
Captain
Lorenzo Dow Baker buys 160 bunches of bananas in Jamaica for a
shilling per bunch and sells them in Jersey City for $2 each.
After this success he and the Bostonian entrepreneur Andrew
Preston join efforts to develop a banana market in Boston. |
| 1871 |
Keith travels to Costa Rica to work on
a railroad project his uncle Henry Meiggs was building for the
national government |
| 1873 |
Keith, when looking for cheap food for his
workers, plants banana trees adjacent to his railroad tracks. |
| 1874 |
Extremely
difficult working conditions pay a high toll on Keith's
workers. Nearly 5,000 men die, including Meiggs. Keith
takes charge of the project. |
| 1877 |
Samuel Zmurri is born in Besarabia, Russia. When immigrating to the
United States he changes his name to Samuel
Zemurray. |
| 1885 |
Baker and Preston establish
the Boston Fruit Company as Americans increase their demand for
fruit. Preston takes charge of tropical
enterprises while Baker controls management in Boston. |
| 1890 |
After facing incredible difficulties, Keith
finishes the railroad from San Jose to Puerto Limon. However,
the low number of passengers using the train made it unprofitable.
Keith decides to use it to export bananas
from the plantations he had created in the early 1870s. The first
shipments proves to be a great success. |
| 1892 |
Young Samuel Zemurray arrives
to the United States from Besarabia. He settles with his family
in Selma, Alabama |
| 1895 |
Zemurray enters in the banana business
marketing the fruit in Mobile, Alabama |
| 1897 |
Keith purchases a 50% of the share
in the Snyder Banana Co. which produces bananas on 6,000 acres
at Bocas del Toro, Panama. |
| 1898 |
April-December: Spanish-American war. The United States
defeats Spain and occupies Cuba and Puerto Rico. |
| 1899 |
Keith's
bank, Hoadley and Company, goes bankrupted. Keith
loses $1.5 million. In order to solve his difficult financial
situation, Keith goes to Boston and
arranges with Andrew Preston a merger
of his company and the Boston Fruit Company. Prior to the negotiation
Preston, Baker, and Keith
control 75% of the banana market in the U.S. In March 30th,
they establish the United Fruit Company.
April. The newly already incorporated United Fruit Company acquires
seven independent companies that have been operating in Honduras.
The Sicilian immigrant
Joseph, Luca, and Felix Vaccaro and Salvador D'Antoni begin
importing bananas to New Orleans from La Ceiba, Honduras. |
| 1900 |
The
Vaccaro Brothers import 6,000 stems of bananas into New Orleans
beginning a successful banana import business independent from
United Fruit. |
| 1901 |
The government of Guatemala hires United Fruit Company to manage
the country's national post service.
Elders & Fyffes Co. is established in Great Britain with the
purpose of shipping and distributing of Jamaican bananas within
the United Kingdom. With British government support, the company
becomes a formidable competitor. |
| 1902 |
The Hubbard-Zemurray Company is established
in New Orleans. |
| 1903 |
After
a series of weather catastrophes and financial problems, plus
strong competition from United Fruit, the directors of Elders
& Fyffes decide to sell part of its stock to the American
company. United Fruit eventually acquires 50% of Elders &
Fyffes stock opening and opens a door to the European market.
The plant disease
known as "Panama Disease" appears for the first time in United
Fruit's plantations in Panama. The disease attacks the plant's
trees roots cutting off the water supply. Thousands of acres
of banana plantations had to be abandoned.
United Fruit launches
the S.S. Venus, the first refrigerated produce boat.
November. Separatist groups in the Colombian state of Panama
declare independence. The US government, in support of the separatists,
sends part of its Navy to prevent the Colombian government from
recovering the state. As soon as Panama's independence is assured,
the US obtains sovereignty of a strip of land in which it plans
on building an interoceanic canal.
United States troops intervene in Honduras.
United States troops intervene in the Dominican Republic. |
| 1904 |
Guatemalan
dictator Manuel Estrada Cabrera grants United Fruit a ninety-nine
year concession to construct and maintain the country's main rail
line from Guatemala City to Puerto Barrios |
| 1905 |
Zemurray
goes to Honduras to study the possibility of creating his own
banana export corporation. |
| 1906 |
United Fruit purchases 50% of the shares of the Vaccaro
Brothers Company which had operated in Honduras. Vaccaro had
organized export plantations in that country as part of a contract
to build a railway between La Ceiba and the interior of the
country.
The United States Army invades Cuba. The American occupation
government remains until 1909.
The Vaccaro Brothers incorporate their banana import business
in New Orleans. |
| 1907 |
United States troops invade Nicaragua and establish a protectorate
in the country.
United States troops land in Honduras during the war with Nicaragua. |
| 1908 |
Through
the Anti-trust legislation the American government forces United
Fruit to sell its Vaccaro shares. |
| 1909 |
The United States Army invades Nicaragua. |
| 1910 |
With a loan of two thousand dollars Zemurray
buys five thousand acres along the Cuyamel River in Honduras
to establish plantations. Soon after Zemurray
purchases the land, he discovers that the Honduran President,
Miguel Davila, would not grant him the tax, land, and transportation
concessions that he was seeking. With this disappointment in
mind, Zemurray decides to organize
and finance a military coup that would replace Davila with Manuel
Bonilla. Slipping past US agents sent by Secretary of State
Philander C. Knox, Zemurray's expedition
sails from New Orleans. The expedition is composed of one small
ship captained by Lee Christmas and Guy "Machine Gun" Molony
and one box of arms. Within weeks after Christmas and Molony
arrive at the port of Trujillo, the government falls and Davila
is replaced by Bonilla. The new President awards Zemurray
generously and grants him the contracts he needs to incorporate
the Hubbard-Zemurray Company in Honduras.
The new company would soon become a serious competitor to United
Fruit..
United Fruit buys the remaining Elders & Fyffes stock. Elders
& Fyffes acquires 8,000 acres of banana lands in the Canary
Islands.
The "Panama Disease" appears in the banana plantations of Nicaragua,
Guatemala, and Costa Rica. |
| 1911 |
The Hubbard-Zemurray Company
changes its name to Cuyamel Fruit Company |
| 1912 |
Keith's
Guatemala Railroad Company becomes The International Railways
of Central America (IRCA)
After a fierce price competition against the United Fruit Company,
the Atlantic Fruit Company declares bankrupcy. Atlantic had been
United Fruit main competitor in Costa Rica; after the bankruptcy
United Fruit takes control of the country's banana exports.
The United States Army sends troops to Cuba.
The United States marines land in Panama during the presidential
elections.
The United States Army intervenes in Honduras. |
| 1913 |
United Fruit gets two railway and land concessions in Honduras.
They are managed by the company's subsidiaries the Tela Railroad
Company and the Truxillo Railroad Company. These concessions
allow the company to begin to produce bananas in large scale
in Honduras. Concessions include 162,000 hectares of land from
which 71,000 were granted in change of the railroad construction.
The Senate Finance
Committee of the United States includes bananas in the proposed
Underwood-Simmons Tariff. Bananas would be taxed at five cents
a bunch. This initiative faces strong opposition from the New
York Times, the Tariff Reform Committee of the Reform Club,
The Banana Buyers' Protective Association, and the Housewives'
League. The lobby made by these organizations eventually succeeds
and the US government permits the tax free import of bananas
to continue. |
| 1914 |
The United States Navy fights against rebels in Santo
Domingo, Dominican Republic.
The United States Army invades Haiti. |
| 1915 |
Zemurray's
company becomes United Fruit biggest competitor.
Standard Fruit buys
most of the ice factories in New Orleans. The ice was needed
to refrigerate the banana ships. After this, the company's president
Joseph Vaccaro became known as the "Ice King."
The United States Army invades Haiti. |
| 1916 |
The United States Army invades the Dominican Republic. |
| 1917 |
The United States Army invades Cuba. The American occupation lasts
until 1933.
The US War Trade Board proposes a complete embargo on bananas in order
to free the United Fruit and Standard Fruit ships for military
purposes. The embargo plan was eventually dropped. |
| 1918 |
The
workers of the banana plantations in Northern Colombia go on strike.
They demand six-day labor week and eight-hour labor day plus health
care. The strike does not succeed.
The United States Army intervenes in Panama and keeps a police
force in the country. |
| 1919 |
The United States marines land in Honduras during presidential
campaign. |
| 1920 |
The United States Army lands in Guatemala and fights for two weeks
against the so-called unionists. |
| 1922 |
Improvements
in banana-drying technology encourage United Fruit to promote
consumption of dried banana chips. The company wanted to use this
as a way to market discarded bananas or plantains. |
| 1923 |
The
song "Yes, We Have No Bananas" by Frank Silver and Irving Cohn
reaches incredibly high levels of popularity, selling 25,000 copies
a day. Afterwards, Silver tours the country with his Banana Band. |
| 1924 |
The Vaccaro Brothers re-organize their old company and establish
the Standard Fruit Company
November 7. The Guatemalan government gives a concession to
the United Fruit for all the uncultivated lands in a 100 kilometers
territory.
Dr. Sidney Haas makes
it public that bananas are a good cure for children suffering
from celiac disease. United Fruit used this finding to promote
banana consumption in the following decades.
United Fruit subsidiary
Fruit Dispatch Company publishes a recipe book promoting the
consumption of bananas with dry cereal, suggesting in particular
corn flakes with bananas and milk. This combination proved to
be an incredible success among consumers. In the following years
cereal companies made deals with United Fruit to advertise this
new breakfast. One of them was to include a coupon for bananas
in cereal boxes.
The United States Army intervenes in Honduras during elections. |
| 1925 |
The
United States Army lands in Panama during a general strike. |
| 1926 |
The
Vaccaros change their company from Standard Fruit Company into
the Standard Fruit and Steamship Company. |
| 1927 |
The Guatemalan government establishes a $14,000 annual rent for the
100 kilometers it gave to United Fruit in 1924.
United Fruit purchases the California-Guatemala Fruit Corporation
which exported fruit from the Guatemalan Pacific Coast to Western
USA |
| 1928 |
The
workers of the banana plantations in Colombia go on strike in
December. They demand written contracts, eight-hour days, six-day
weeks and the elimination of food coupons. The strike turns
into the largest labor movement ever witnessed in the country
and radical members of the Liberal Party and members of the
Socialist and Communist Parties participate strongly. The national
labor union bigwigs Carlos Mahecha and Maria Cano traveled to
the banana zone to organize the strike. They counted with the
help of Italian and Spanish anarchist immigrants for this.
Gabriel Garcia Marquez is born in Aracataca, a town in
the banana zone of Magdalena, Colombia. |
| 1929 |
January
(Colombia). The banana worker strike continues and gets national
attention since it is supported by the Liberal Party. The Conservative
Party, which controls the government, decides to send the Army
into the Banana Zone. During a demonstration in the main plaza
of the city of Cienaga the Army, commanded by Carlos Cortes
Vargas fires on the strikers and leaves an undetermined (and
disputed) number of strikers dead. The government declares a
state of siege in the Banana Zone and the strike eventually
ends. One Liberal politician, Jorge Eliecer
Gaitan denounces the government's action at the National
Congress, on the radio, and public speeches. Gaitan's
denounciations help undermine the Conservative Party's reputation
and the party is defeated in the next year's election.
May 1st (Honduras): The Communist Party creates the Federacion
Obrera HondureŠa. This federation creates "Action Committees"
among the banana workers.
November: After an unsuccessful price war against Zemurray's
Cuyamel Fruit Company, United Fruit decides to buy Zemurray
out. United Fruit sells Zemurray
$31,500,000 in the company's stocks in exchange for all Cuyamel
stock. Zemurray becomes the biggest
shareholder of United Fruit.
United Fruit's subsidiary,
Fruit Dispatch, hires a group of consultants to do a market
research on American banana consumption. The consultants' results
says that bananas were consumed by a large sector of the country's
middle class and were considered the perfect food for babies.
After this report, United Fruit doubled Fruit Dispatch's advertisement
budget and begins an aggressive campaign in national newspapers
and magazines targeted to middle class families.
Fruit Dispatch establishes
the Education Department in addition to the Advertising Department.
The Education Department prints educational materials for classroom
use promoting banana consumption. |
| 1930 |
Louisiana's governor Huey Long denounces Samuel Zemurray
in the U.S. Senate for being involved in corrupted businesses
in Central America
July (Honduras): The Action Committees of the Federacion Obrera
HondureŠa organize a strike in the banana plantations. The strike
has little support from the workers and is cracked down easily. |
| 1931 |
April (Honduras): The government declares martial law on the north
coast after workers attack military barracks at Trujillo and Tela.
The rebellion is orchestrated by former Secretary of War General
Gregorio Ferrera.
June (Honduras): Ferrera's rebellion ends with his dead in a skirmish
with Government troops. |
| 1932 |
The United Fruit transfers its railroad in Colombia to the national
government which, in turn, leases it to the company for thirty
years more.
Honduras: Labor unrest among United Fruit workers follow the company's
decision to fire 800 workers.
Guatemala: Juan Pablo Wainwright, leader of the 1930 banana workers'
strike in Honduras, is assassinated.
The United States Navy intervenes in the Marti Revolt, El Salvador. |
| 1933 |
During the first years of the Great Depression the shares' price of
United Fruit fall dramatically and its profits decrease from $44.6
million in 1932 to 6.2 in 1932. The members of the board of directors
vote to name Zemurray general director
of the company. Two weeks later the price of the company's stock
doubles. Zemurray's first move is to
replace the existing tropical managers with experienced managers
and former employees of Cuyamel. He also improves transport and
intra-company communication while reorganizing the company with
a clear hierarchy of employeespecialization.
During the 1930s Zemurray uses his
fortune in several philanthropic works such as a large donation
to the New Orleans Child Guidance Clinic and financial backing
of The Nation magazine |
| 1934 |
Anastasio Somoza takes power in Nicaragua. His family continues
to rule until the late 1970s. |
| 1935 |
An
epidemy of Sigatoka (a fungus that attacks the leaves of the banana
plant and causes the fruit to ripen prematurely) appears in Standard
Fruit's Honduras plantations and threatens to wipe out the entire
crop. The companies begin large-scale spraying programs. The first
experiments with Bourdeaux mixture (made up of copper sulfate,
hydrated lime, and water) prove to be successful at controlling
the disease but extremely expensive. |
| 1936 |
United
Fruit Company signs an ninety-nine year concession with Guatemala
President General Jorge Ubico and opens its second plantation
in the country in the region of Tiquisate. |
| 1937 |
United
Fruit merges with Minor Keith's International
Railways of Central America (IRCA) |
| 1939 |
United
Fruit's Home Economics Department publishes the school teacher
manual entitled "A Study of the Banana: The Everyday Use and Food
Value." The manual gave a detailed description of the food value
of bananas and gave suggestions of preparation. The success of
this manual led the company to publish other school manuals in
the following years for elementary to high-school students. |
| 1942 |
Samuel Zemurray, President
of the United Fruit, establishes the Escuela Agricola Panamericana
in Honduras. The institution is intended to be a free higher-education
school financed by the company specialized in agricultural research,
and attended by Central American students. |
| 1942-45 |
During
World War II United Fruit reduces its operations to the minimum
level because of the presence of German submarines in the Caribbean. |
| 1944 |
United
Fruit hires cartoonist Dik Browne (the creator of Hagar the Horrible)
to create a cartoon based on the Latin American singer and movie
star Carmen Miranda. The cartoon was baptized as Miss Chiquita
Banana and was part of the advirtisement campaign the company
was preparing for when the war was over. |
| 1945 |
Juan
Jose Arevalo takes power as the new President of Guatemala.
He pushes United Fruit to improve the working conditions at
its plantations. The company makes some concessions after a
series of strikes from its workers.
The character of
Miss Chiquita Banana debuts in the technicolor movie advertisement
"Miss Chiquita Banana's Beauty Treatment" in which she sings
to revive an exhausted houwewife. |
| 1947 |
The Guatemalan government establishes a Labor Code. The
company denounces it as "Communistic" and threatens to leave Guatemala.
The code forces the company to make further concessions to the
workers in the strikes that followed. |
| 1948 |
Samuel
Zemurray lets one of the company's
ships to participate in the settlement of Jews in Palestine after
the war. The ship was re-baptized with the name of Exodus and
carried the first wave of Jewish immigrants to the Middle East |
| 1949 |
Senators
Claude Pepper (Florida), Alexander Wiley (Wisconsin), and Mike
Mansfield (Montana) accuse the Guatemalan government of failing
to safeguard United Fruit's businesses in that country.
January (Honduras): After being the dictator of Honduras for thirteen
years, President Juan Vicente CarÕas voluntarily gives the presidency
to his vice-President and former lawyer of United Fruit, Juan
Manuel Galvez. Galvez restores guarantees to political exiles
and begins social reforms. Many exiles return to the country and
this reinforces his opposition. Yet even under Galvez, the left-wing
newspapers kept criticizing the governmental concessions given
to United Fruit.
Honduras: During Galvez's government the Honduran Congress passes
labor regulations for children and women and establishes an eight-hour
working day. This is a monumental change in Honduras' labor laws. |
| 1950 |
Nobel-awarded Chilean writer Pablo Neruda publishes his
epic work "Canto General" about the history of Latin America.
One of its chapters is entitled "The United Fruit Company." |
| 1951 |
Jacobo
Arbenz wins the Presidential election in Guatemala and promises
to change the agrarian structure of the country. |
| 1952 |
The Guatemalan Congress approves the Decree 900, the Agrarian
Reform Act. |
| 1953 |
Using
the Agrarian Reform Act Arbenz government
declares that 209,842 acres of uncultivated lands of United Fruit
should be expropriated and distributed to landless peasants. The
Guatemalan government promises the company an indemnification
of $627,572 in governmental bonds. The value of this indemnification
was based on the company's declared tax value of the land. During
this year Zemurray hires a public relations
company to begin an aggressive campaign against Arbenz
in the American media.
Standard Fruit introduces the first experimental plantings and
shipments of the Panama Disease resistant Cavendish-type banana.
This type eventually adapted by United Fruit to replace the Gross
Michel type in the 1960s. |
| 1954 |
GUATEMALA:
April 20. United States Secretary of State John Foster Dulles
sends a protest note to Arbenz declaring
that the idemnification value calculated by the Guatemalan government
was not fair. Arbenz, however, continued
with his Agrarian Reform Program. Dulles calls John Peurifoy,
the American ambassador in Guatemala, to get detailed information
of the Guatemalan situation. Peurifoy said to the Congress that
Guatemala was spreading "Marxist tentacles" in Central America.
Zemurray approves the publication
of a book called "Report on Guatemala" which claimed that Arbenz
Agrarian Reform had been planned in Moscow. The book was distributed
to Congressmen
March. The Conference of the Organization of American States
in Caracas finishes with a resolution in which the member countries
show their concern about the "Communistic infiltration" in the
continent.
May: Arbenz proposes a non-aggression
treaty to Honduras. The Honduras government refuses.
June, 18. Using military bases in Nicaragua Guatemalan Colonel
Carlos Castillo Armas attacks Guatemala
in what his supporters called "the Liberation war against Communism."
The operation was backed by all the other Central American governments
and the United States. Castillo succeeded
at forcing Arbenz to go on exile and
immediately ended the legal actions against United Fruit under
the Agrarian Reform Law. Twenty-five year old Argentinean Ernesto
Guevara (later known as el "Che") witnesses the coup and
becomes convinced that radical changes in Latin America are
only possible through an armed revolution. Guevara
is living in Guatemala at the time working as a doctor and book-seller
and he volunteers to organize resistance militias against Castillo's
army. When facing an inevitable defeat he later escapes from
Guatemala to Mexico where he meets another political refugee
who will become one of his closest friends: Cuban Fidel Castro.
July 2. A US Court begins legal action against the United Fruit
Company for violating the Sherman Anti-trust Act and the Wilson
Act.
July 13. United States President Dwight Eisenhower gives official
recognition to Castillo's government.
July 19. Castillo establishes the
National Committee of Defense Against Communism to seek out
any remaining of Arbenz supporters.
He also sets back the labor laws created under Arbenz
government.
Arbenz begins his long exile in Mexico,
France, Switzerland, Soviet Union, China, Cuba, Uruguay, and
Mexico.
HONDURAS:
May 5. The workers of the United Fruit Company go on strike
demanding higher wages and are followed by the Standard Fruit
workers. This strike paralyzes all banana operations and peaks
with 25,000 striking workers (around 15% of all the country's
labor force)
May 7: United Fruit manager J. F. Aycock declares that the company
would not negotiate as long as the workers are on strike. That
day, the strike expands to La Ceiba, Standard Fruit center of
operations. Contrary to United Fruit, Standard offers to negotiate
with striking workers.
By the second week of May 11,000 Standard Fruit Company employees
join the strike. Simultaneously, laborers in others sector of
the economy go on strike too, including miners, brewers, and
textile workers.
May 16: The strikers present their "pliego de peticiones" to
manager Aycock in La Lima. They quote the Universal Declarations
of the Rights of Man and demand an increase in wages. At the
same time, the workers of Coca-Cola in La Ceiba and Puerto Cortes
strike.
Shortly after the protests began, the Honduran President Manuel
Galvez expels two Guatemalan consuls charging them of instigation.
May 9. The American ambassador in Honduras says that the country's
strike had been inspired by Guatemalan communists. In addition,
U.S. Secretary of State John Foster Dulles suggests that Guatemala
Arbenz's government might be behind
the Honduran strike.
May 18: Standard Fruit opens negotiations with the workers under
governmental arbitration. The company agrees to increase wages
and improve working conditions, making this the first time in
Honduran history that a private corporation negotiates a collective
agreement. The workers committed themselves to go back to work
on May 21.
May 21: After the Standard Fruit workers go back to work, the
United Fruit workers harden their position. The number of strikers
increases to 100,000 United Fruit.
May 25: A governmental commission arrives to La Lima and is
accepted as an intermediate by both the workers and management
of United Fruit.
May 31: Breakdown in the talks between United Fruit and the
strikers.
June 5: The workers try to create a new delegation to negotiate,
but United Fruit tells the Honduran media its opposition to
further negotiations. In the weeks to follow the strikers' peaceful
attitude win them the sympathy of the Honduran media, politicians,
and even Henry Wallace, a former US Vice-President.
July 9. The banana workers' strike in Honduras ends. Although
the strikers do not manage to get what they initially wanted,
the company does change the working conditions and the government
is forced to create a more progressive labor legislation. The
workers demanded a wage increase of 72% but only won a 21% raise.
The company also agrees to provide medical care for the workers'
families.
A hurricane hits the Honduran plantations and United Fruit fires
10,000 workers |
| 1955 |
Between
1955 and 1962 United Fruit published around 15 million pieces
of literature for students in elementary grades through high
school to promote the learning of bananas and the health benefits
of their consumption. These manuals were also distributed in
schools around the world.
|
| 1956 |
The
Senate's Select Committee on Small Business, undertakes a investigation
of "the problems of small business" and calls on United Fruit
to testify on its commercial distribution of bananas within
the US. The State Department immediately requests that the Senate
hearings be closed to the public and press. It explains that
"distorted or sensational reporting of these hearings in the
Latin American press might reflect unfavorably on a large American
company having extensive operations in the area, and might easily
be used by the Communists for propaganda purposes to damage
the prestige of the United States." Several days later, however,
the State Department finds "nothing objectionable" and allows
the release of the transcripts to the press.
|
| 1958 |
The US government's anti-trust against the company is finally
settled. The United Fruit Company agrees to sign a consent decrees
that allows the company to admit to no wrongdoing but still allows
the government to force several important changes to the structure
of the company. The largest change facing the company is that
it has to carve out a competitor, from its own holding, by 1970,
will be one third of its current size. It begins by selling its
Guatemala holdings to both Standard Fruit and to Guatemalan entrepreneurs.
United Fruit also sells Meloripe and Banana Selling Corporation,
its two large American fruit distributing subsidiaries, to private
banana jobbing firms. The lawsuit, at least symbolically, marks
the decline of the fruit company.
United Fruit does, however, expand its business in other directions
by acquiring the rights to explore petroleum and natural gas in
Colombia, Panama, and Ecuador.
November. Fidel Castro takes power in Cuba after a successful
guerrilla war against President Fulgencio Batista. Batista leaves
the country. |
| 1959 |
Fidel Castro begins his agrarian reform and seizes the sugar properties
of United Fruit in that country.
Thomas Sunderland becomes the new
President of the United Fruit Company. His main goals are to
reduce cost and effectively handle the changes brought about
by the increased competition of the Standard Fruit Company and
the Ecuadorian corporations. He also has to handle the drastic
changes following the consent decree. Sunderland
begins to promote the larger sized Cavendish banana over the
Gros Michel, and the company begins to transport the bananas
in cardboard boxes instead of free bunches. He also pushes the
Chiquita brand-name by having labels placed on the bananas.
The second half of the 1950s witnesses a process of divestiture
of the company. Slowly, the company has removed itself from
directly growing bananas on its plantations and has concentrated
on marketing its bananas.
A lawsuit against the United Fruit Company is filed in
a New York state court. The court rules that the fruit company
had forced its partly owned subsidiary, International Railways
of Central America (IRCA), into setting prices that had only
favored its own banana transportation. The prices had been set
too low, harming IRCA and its American shareholders. A verdict
is passed in 1959 and United Fruit has to pay $4.5 million in
damages to IRCA's shareholders. |
| 1960 |
Nov.
2. The first serious strike of the banana workers in Panama. The
workers of the Bocas del Toro Division demand higher wages and
better working conditions. Shortly after they are joined by the
Armuelles workers. The strikers paralyze all the export activities
for two months. United Fruit gives recognition to the elected
union leaders as the workers' legitimate representatives. |
| 1961 |
A group of Cuban exiles unsuccessfully attempts to invade Cuba
and depose Fidel Castro. |
| 1962 |
United
Fruit provides American school teachers with a package that
included student lesson sheets on bananas and the Central American
countries, a folder of banana recipes, a wall chart, a sound
motion picture, a film-strip, and an eight-page teacher's manual
on how to get and use these aids. This educational material
was recommended for geography, history, social studies, health
and nutrition, elementary and general science and biology classes.
The kit had a cost of $4.
United Fruit creates
the individual banana sticker label. The small blue stickers
with the Chiquita logo are affixed to the fruit and the company
makes a strong advertisement campaign to promote the consumption
of its branded banana.
Colombian writer Alvaro Cepeda Samudio publishes his novel "La Casa
Grande" inspired in the banana workers strike of 1929 in Magdalena,
Colombia. |
| 1963 |
Herbert Cornuelle becomes the new President of the United
Fruit Company. He begins a process of diversification of United
Fruit's investments in order to reduce its dependence on bananas.
During this process the company acquires A&W Root Beer Company,
Foster Grant.
Fulton City, Kentucky,
celebrates the first International Banana Festival sponsored
by Standard Fruit and Dole (with no participation of United
Fruit), and declares itself the Banana Capital of the United
States. The festival includes cultural and artistic expressions
of banana exporting countries, a carnival and a beauty contest
(the International Banana Princess). The event is praised by
President Kennedy and President Johnson as an important manifestation
of friendship among the peoples of the Americas and counted
on the active help of the Alliance for Progress. |
| 1964 |
Castle and Cook buys the Vaccaro family (owner of Standard Fruit). |
| 1965 |
The United States Army sends troops to the Dominican Republic
during its election campaign. |
| 1966 |
AMK,
originally a producer of milk-bottle caps, acquires a third
of the common shares of John Morrell & Company, a meat packer.
By the end of that year, AMK acquires John Morrell completely.
AMK's President Eli Black begins an aggressive campaign to dominate
the American food market.
United Fruit builds
a banana puree factory in Honduras in order to find a market
for discarded bananas. The factory has a limited success in
the following years, and has to wait until the 1980s to see
acceptable results. Banana puree is used in ice-creams, eggnog,
and yogurt. |
| 1967 |
After
its acquisition of the West Indies Fruit Company, Del Monte
Corporation enters in the international banana business.
Gabriel Garcia Marquez publishes the first edition of "Cien
AŠos de Soledad" (One Hundred Years of Solitude) in Buenos Aires,
Argentina. Part of the novel is inspired on the strike of the
Colombian banana workers against United Fruit in 1929.
Castle & Cooke Corporation wholly acquires the Standard
Fruit and Steamship Company.
United Fruit distributes
90,000 full-color illustrated recipe cards for Chiquita banana
and peanut butter sandwiches to schools in the United States,
promoting these sandwiches for lunch. |
| 1968 |
|
| 1969 |
Sept.
24. Eli Black makes the third largest transaction in Wall Street
history up to that moment by buying 733,000 shares of United Fruit
in a single day. Black becomes the largest shareholder of the
company. |
| 1970 |
United Fruit chairman John Fox and Eli Black negotiate the merger
of United Fruit and AMK-John Morrell. After negotiations with
the Federal Trade Commission they merger and name themselves
United Brands Company in June 30th. The company reports operation
losses of two million dollars. Black cuts the research expenses.
Aldicarb, an insecticide
to control mites and nematodes is introduced in the market by
Rhone-Poulenc. This chemical proved to cause headache, stomach
problems, blurred vision, and disorientation among the workers
who worked with it. |
| 1971 |
January
27. Jacobo Arbenz dies in exile in Mexico
City at the age of fifty-eight.
United Brands reports a loss of 24 million dollars; the highest
in its history
December: Alleging violations of the Sherman Acthe U.S government
orders United Brands to divest themselves of a banana-producing
division capable of 9 million stems . The company sells the division
Compania Agricola de Guatemala, to West Indies Co. (a Del Monte
subsidiary) |
| 1972 |
In an attempt to pay its high debts United Brands begins to sell several
of the conglomerate's companies and tropical land assets.
An earthquake destroyes the capital city of Nicaragua, Managua. Black
organizes a United Brands sponsored aid to the victims.
The Black Sigatoka fungus attacks the leaves of the Cavendish plantations
in Honduras. |
| 1973 |
Black manages $16 million in profits this year giving the
hope of recovery for the company.
March: For the first time in history, Dole moves to the
first place in United States sales ahead of United Brands, with
45% of the market, versus 35% for United Brnads. |
| 1974 |
March:
The governments of Honduras, Costa Rica, and Panama sign the Panama
Agreement which imposes banana export taxes of $1 per 40 pound
box. United Brands considers this new tax unfair and confronts
the local governments.
July-September: Workers in the United Brands Company go on strike
and refuse to export bananas from Panama unless the local government
ends its consideration to nationalize the company's Panama assets.
This means an interruption of 45% of the total of Panama's exports.
September 17. The governments of Costa Rica, Colombia, Honduras,
Guatemala, and Panama form the Union de Paises Exportadores de
Banano (UPEB) -Organization of Banana Export Countries- to defend
the interests of the member countries, raise and maintain high
prices, and adopt common policies. United Brands threatenes unsuccessfully
to pull out. Ecuador, the world's largest producer, decides not
to join the organization.
September 18. Hurricane Fifi destroys 70% of company's plantations
in Honduras and causes losses of more than $20 million. The hurricane
decreases the country's annual exports from 45.4 million boxes
in 1973 to 35.3 in 1974, and 20.4 million in 1975.
Black organized relief teams to help the victims of Fifi. Financial
losses are not recovered.
United Brands' subsidiary John Morrell reports losses of $6 million.
The total losses of United Brands that year are $70 million.
In a new attempt to alleviate the company's troubles, Black sells
on December Foster Grant for almost $70 million. The operation
is considered to be a great success |
| 1975 |
February 3. Black commits suicide by jumping from his office in Panam
building in New York. The investigations following his death
reveal a bribery scandal in which Black and United Brands are
involved. In April the SEC accused United Brands of bribing
the President of Honduras, Osvaldo Lopez Arellano with $1.25
million, with the promise of another $1.25 million later, in
exchange for a reduction in the export taxes Honduras committed
under the light of UPEB rules. The investigation also reveals
that during Black's presidency United Brands had bribed European
officials for $750,000. The trade of United Brands stock is
halted for almost a week, and some shareholders bring lawsuits
against the company. In the meantime, the Honduran Army removes
the President on suspicion of participating in the bribe, despite
Lopez allegations of innocence. The scandal also rushes the
Costa Rican President to threaten United Brands with a cancellation
of all contracts if the company did not reveal all the names
of local officials involved in bribes. Finally, a federal grand
jury brings criminal charges against United Brands in the United
States.
May. Wallace Booth, chairman of United Brands Company succeeds
in a series of reforms that include tightening management control,
streamlining banana delivery systems, and updating meat-packing
technology at John Morrell.
The conversion from Gros Michel to Cavendish is completed in all Latin
American plantations, with the exception of some area in Northern
Ecuador grown for domestic consumption. |
| 1976 |
Carl
Lindner, one of the biggest investors of the company, becomes
the new President.
January. A federal judge grants SEC permanent access to United
Brands records to avoid further violations of the law from this
company.
April. United Brands sells 190 miles of railroad track to the
Honduran government for $0.50 and then leases it back for $250,000
a year. It also commits itself to the maintenance and operation
of the railroad line. |
| 1978 |
United Brands admits that it had paid a bribe of $2.5 million
to the former Honduran minister of economy, Abraham Bennaton Ramos.
The company is fined with $15,000 and the case is closed. |
| 1979 |
The
United States bans the use of dibromochloropropane (DBCP) for
the effects it has on human health. DBCP had been developed
by Dow Chemical and Shell Oil as a pesticide to kill nematodes
(microscopic worms that feed on the roots of banana trees).
DBCP had used widely in the Central American plantations since
the 1960s and caused damages in the banana workers' testicles.
Although prohibited in the United States this pesticide continued
being used in the banana-producing countries.
R.J. Reynolds purchases
Del Monte. |
| 1982 |
Lindner increases dramatically his stake in the company.
Black Sigatoka begins to spread from Honduras to all over Central
America in this decade. |
| 1983 |
Strong storms in Panama and Costa Rica damage the banana crops. United
Brands faces this loss at the same time it was dealing with
strong losses of John Morrell.
United Brands loses ground sharing only a third of the banana market.
The other two thirds were in hands of Del Monte and Standard
Fruit.
The Unites States Army invades Grenada. |
| 1984 |
August.
Lindner takes over as chairman of United Brands. He transforms
the company from its large, diversified operations into a company
with a narrower focus. He works to stabilize profits. |
| 1985 |
With a new team of directors Lindner doubles the company's
cash flow from 1985 to 1988. Lindner sells some of the company's
operations, such as soft drinks, animal feeds, and international
telecommunications. He moves the company's headquarters from
New York to Cincinnati.
Lindner widens the use of the name "Chiquita" to other fruits
such as grapefruits and pineapples. He manages to recapture
the first place in banana trade from Dole.
David Murdock buys Castle and Cook (the owner of Standard
Fruit) and re-names the new company as Dole Corporation. Dole
had business in a wide variety of fruits, vegetables, and elaborated
food, besides bananas. |
| 1986 |
The workers of John Morrell meat packing houses in the
United States go on strike. The conflict is settled in one year. |
| 1987 |
Black
Sigatoka fungus reaches Ecuador.
The Central American
banana growers spend this year $100 million to control Black
Sigatoka. |
| 1988 |
John Morrell workers sue the company claiming that they
were not paid for work involving safety equipment that they were
required to perform on their own time. The Labor Department's
Occupational Safety and Health Administration levies a fine of
$4.3 million. |
| 1989 |
Lindner decides to change the name of the company from
United Brands Company into Chiquita Brands International Incorporated.
He justified this by saying that popular name recognition would
help the whole conglomerate.
The United States Environmental Protection Agency recommends
the ban of Aldicarb, a chemical to control mites and nematodes,
in banana plantations for the bad effects this insecticide had
on people's health. Aldicarb, however, is not banned.
The United States Army invades Panama and arrests President
Manuel Noriega. |
| 1990 |
The collapse of the Communist regimes in Eastern Europe brings hopes
to the different banana companies of a larger market. Chiquita
begins to invest in buying land again, after a long process
of divestiture that began in the 1950s.
Chiquita recovers the number one place of the banana companies (33%
of the world's market share), followed by Dole (22%).
Dole reports that 40% of its food division profits came from banana
sales. |
| 1991 |
The
United States Environmental Protection Agency reported that a
few bananas imported to the US were tainted with Aldicarb (a pesticide
with proven hazzardous health effects). Although there were no
reports of possible health effects due to eating bananas with
Aldicarb the manufacturer, Rhone-Poulenc withdraws the product
from the market for use on bananas. Aldicarb had been withdrawn
from potatoes already, but remained in use in citrus, soybeans,
coffee beans, sweet potatoes, sugar beets, pecans, tobacco, cotton,
and alfalfa seeds. |
| 1992 |
Fulton
City, Kentucky, celebrates the last International Banana Festival.
The decision to kill the festival was because of a decreasing
interest by the participating countries, the US government, the
banana companies, and the local community. |
| 1993 |
A
Texas court settles out a multimillion dollar suit filed against
several American companies by thousands of Costa Rican banana
workers in the 1980s who claimed that they had been made sterile
by exposure to DBCP, an insecticide.
Facing the possibility
of an international boycott on bananas because of the damage
certain pesticides caused to the workers, the Costa Rican government
and the multinational corporations begin research on pest-resistant
and more enviromentally-friendly banana varieties. This initiative
is promoted by the Banana Amigo Project and sponsored by the
US-based Rainforest Alliance and the Costa Rican Fundacion Ambio
and Tsuli Tsuli/Adubon.
The European Union
establishes a quota system for banana imports giving preference
to those produced in their former colonies in Africa and the
Caribbean. The Latin American growers face tariffs and no quota
in their exports to Europe. The European Union argues that without
this policy the banana export industry of its former colonies
would collapse. |
| 1994 |
Given
that Chiquita does not have any investment in the the former European
colonies' producing areas, the company accuses the European Union
quota policy as unfair. Senator Robert Dole says in the U.S. Senate
that the European initiative was going against the most basic
rules of free market and proposed retaliation. During his presidential
campaign against President Bill Clinton, Senator Dole receives
a $155,000 contribution from Chiquita and uses a company's airplane
for his campaign tour around the United States |
| 1995 |
NBC
television show "A Word from Our Sponsor" includes "Chiquita Banana"
among the all-time top-ten advertising jingles. |
| 1998 |
May:
The Cincinnati Enquirer publishes a series of articles written
by Mike Gallagher and Cameron McWhirter exposing Chiquita's
questionable business practices that included bribery, abusive
corporate control in Honduras and Colombia, the use of harmful
pesticides, and repressive actions against workers. Chiquita's
shareholders sue the company, and Chiquita sues the newspaper
claiming that the reporters illegally obtained voice-mail tapes.
The Enquirer was forced in court to fire the reporters and to
apologyze to Chiquita. The company, however, never challenged
the facts reported by Gallagher and McWhirter.
November: The United
States protests at the World Trade Organization against the
new European policy around bananas, and threatens to slap 100%
tariffs on several European products unless the European Union
stops its preferential treatment for Caribbean, African, and
Pacific producers. The European Union claims that the American
demand does not make sense because its policies did not affect
a single American job. European Union's trade commissioner,
sir Leon Brittan claims that the sanctions are product of the
strong lobby of Chiquita and Dole.
November: Hurricane
Mitch destroys 90% of the entire banana industry of Honduras.
At the time, Honduras was the fourth largest banana producer
in the world. Chiquita lays off 7,400 of its workers, but promises
to continue providing the workers with medical insurance, housing,
utility service, two months of financial assistance, and interest-free
loans. Dole contributes with shipments of food and medicine. |
| 1999 |
March:
Beef joins the banana war when the European Union bans the imports
of genetically modified beef from the United States. The American
government threatens with more sanctions adding more fire to
an already heated debate. The World Trade Organization finds
the European decision unlawful and sides with the US.
April 7: The World
Trade Organization determines that American commercial interests
had suffered losses of $191.4 million in each of the years the
European Union regime had existed, making a total of $1 billion
harm. The European Union refuses to bring its system into the
World Trade Organization conformity and suffers American retaliation
in the form of sanctions against European businesses directly
involved in the banana conflict.
In spite of the WTO
rule, the European Union refuses to change the quota system.
Sir Leon Brittan, EU's trade commissioner, insists again that
the whole conflict is orchestrated by Chiquita and Dole who
paid important politicians to lobby on their favor. US Trade
Representative, Charlenne Bershefsky, claims that EU's policies
will hurt poor countries like Honduras or Nicaragua more than
the multinational corporations. Bershefsky says that the US
government is losing its patience and might impose economic
sanctions to Europe.
|
| 2000 |
The
United States imposes economic sanctions to Europe as part of
the banana war. The sanctions meant heavy tariffs to luxury goods
imported from Europe at the cost of $191.4 million. |
| 2001 |
April
11: The European Union and the United States settle their differences
and end with the banana war. United States drops the economic
sanctions and the Europeans drop their first-come-first-served
import system and replace it for a transitional system that
will lead to a tariff-only system in 2006. Under the agreement,
EU import licenses will be allotted based on the way they were
distributed during a 'historical reference period' of 1994-1996.
The European Commission will also initiate the necessary procedures
to propose to the EU Council of Ministers an adjustment to expand
access for Latin American bananas and to secure a market share
for a specific quantity of bananas of ACP (African, Caribbean,
and Pacific) origin.
The final agreement
between the US and the EU is praised by Chiquita who had sued
the European Commission for US$525 million in damages it said
it had suffered due to EU banana restrictions. The agreement,
however, faced the opposition of Ecuador and Dole who saw this
as an arrangement to assure Chiquita a fixed market share in
the protectionist European market. Ecuador threatens to protest
at the World Trade Organization. |
| 2002 |
March:
Chiquita starts restructuring its debt protected by the US bankruptcy
legislation, permitting it to emerge from Chapter 11.
March: Chiquita sells
its main interests in the US Midwest after selling all its interests
in the Castellini Group.
Chiquita adopts a new code of conduct that follows the standards
required by the Social Accountability International’s
SA8000 labor and human rights standards.
Chiquita has a meeting considered “historic” with
members of the International Labor Federation (ILO) and COLSIBA,
a Latin American-wide banana labor union umbrella. For the first
time in its history, Chiquita sings an agreement with the labor
unions of all its divisions and agrees on improving workers’
conditions.
Chiquita joins the
Ethical Trading Initiative, an international set of standards
on fair trade and human rights.
The Progressive Investor
names Chiquita one of the top 20 “green stocks”
for its environmental record.
|
| 2003 |
Chiquita
acquires the Atlanta AG Group, a leading banana market company
in Germany.
Chiquita decides to focus on its fresh fruit market by selling
its processed food divisions to Seneca for $110 million in cash
and debt assumption. After this transaction, fresh produce amounted
98% of all the company’s operations.
Chiquita receives the “Corporate Conscience Award”
from Social Accountability International
Dole Foods acquire the Costa Rican pineapple division of Maui
Land & Pineapple.
David Murdock, Dole’s CEO, acquires Dole and becomes the
company’s sole owner.
|
| 2004 |
Feb.
4: Chiquita announces its bid to acquire the East Africa Coffee
Plantations Co.
May: Chiquita admits that it had paid “protection money”
to different terrorist groups in Colombia, including right-wing
paramilitary groups responsible for several massacres and murders
of union leaders. Thereafter, the US Department of Justice starts
an investigation in this matter.
June: Chiquita stops
its operations in Colombia and withdraws from that country.
The company sells its Colombian division to the local company
Banacol for $52 million. Chiquita says that their withdrawal
is part of its new policy of focusing efforts in African production.
The Colombian unions say that the company’s policy responds
to lower labor costs in Africa and the European banana policy
that favors African producers.
Oct. The European Commission announces an increase of 75 Euros
to 230 Euros per ton for bananas imported from places different
from Africa, the Pacific, and the Caribbean (ACP). The policy
is planned to start in January 2006. Chiquita says this policy
puts it at a disadvantage while the ACP countries propose a
higher tax of 354 Euros/ton.
The new European system leads the Latin American producing countries
(Ecuador, Colombia, Costa Rica, Guatemala, Honduras and Panama)
to request arbitration from the WTO.
|
| 2005 |
Jan.:
Chiquita agrees to acquire Performance Food Group's Fresh Express
division for $855 million and completed the deal in June 2005.
Fresh Express controls 40% of the American packaged salads market.
This operation increases the company’s North American
revenue base from 26% to 44%.
Jan: Chiquita announces that 100% of its Latin American plantations
had been certified by independent auditors to International
Labor Standards and the environmental standards of Rainforest
Alliance.
June: Chiquita accuses itself of violations of the European
quota regime. The company starts and investigation on the employees
involved in the case, avoiding a sue from the Europeans due
to its voluntary acknowledgement of the problem. Other companies
involved included Del Monte and Dole.
Jun 10: Wal-Mart, Chiquita’s biggest customer in the United
States, announces a decrease in its banana purchases. This means
a decrease of 33% of Chiquita banana
sales in the U.S. Chiquita blames cheaper bananas from other
competitors.
Jun 16: Chiquita says that the problems with Wal-Mart were a
result of the extremely low price demands from the retailer.
July: The presidents of the main Latin American banana producing
countries meet in a summit in San Jose (Costa Rica) to condemn
the existing European quota system as discriminatory and plea
for a WTO intervention.
|