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Chiquita Selects Triple Point to Manage Hedge Accounting

Food and beverage companies choose Triple Point to manage cost volatility for raw materials and fuels

Triple Point Technology®, the leading provider of multi-market commodity and enterprise risk management software solutions, announced today that Chiquita Brands International Inc. has selected Commodity XL™ for Hedge Accounting, Fair Value Disclosure and FAS 161.

Chiquita is a leading international marketer and distributor of high-quality fresh and value-added food products including bananas, fruits and green salads. With annual revenues of nearly $4 billion, Chiquita has operations in more than 80 countries worldwide.

More of the world’s population is joining the ‘consumer’ bracket, driving demand for raw materials and fuels. As commodities become a larger and more volatile part of the supply chain cost structure, new industries are choosing Triple Point for the same sophisticated solutions it has traditionally supplied to energy and commodity trading companies. Notable clients in the consumer products, agricultural and manufacturing industries that have recently selected Triple Point include Unilever, The Campbell Soup Company, Gavilon (formerly ConAgra Trade Group) and Incitec Pivot Ltd.

Chiquita’s core ships utilize 300,000 metric tons (MTs) of bunker fuel annually. A 1% move in the fuel rate would represent a $1.3MM impact to its cost in the absence of hedging — in 2008, the average price volatility of bunker fuel was over 12%. Chiquita uses derivatives to hedge price movements in bunker fuel and must comply with Federal Accounting Standard (FAS) 133 to receive beneficial hedge accounting treatment. The company was seeking improved efficiency over its hedge accounting processes. Commodity XL enables Chiquita to manage exposure and comply with strict audit and reporting requirements under FAS 133, 157 and 161.

Chiquita selected Triple Point’s Treasury and Regulatory Compliance solution suite including Commodity XL™ for Hedge Accounting, Fair Value Disclosure and FAS 161.