ALCO - Alico Inc. Announces New Supply Contract with Tropicana | Benzinga
FORT MYERS, Fla., June 10, 2024 (GLOBE NEWSWIRE) -- Alico, Inc. ("Alico" or the "Company") (NASDAQ:ALCO) today announced that it entered into a new agreement with its largest customer to supply citrus fruit. This agreement is effective June 5, 2024 through July 31, 2027, subject to its terms and conditions.
This supply agreement succeeds existing agreements that are set to expire at the end of July 2024. This agreement effectively sells the citrus fruit grown on approximately 65% of Alico's currently planted acres to Tropicana Brands Group ("Tropicana") 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. Alico has another supply contract with Tropicana that remains in effect through the 2024-25 harvest season.
John Kiernan, Alico's President and Chief Executive Officer, commented, "We are pleased to announce that we have extended our relationship with our largest customer for three additional years. 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. This new supply agreement, in addition to our other continuing agreement, commit the majority of our citrus fruit at more certain pricing provisions over the next several seasons."
LEARN MORE ABOUT ALICO INC.
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. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
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