Dole Food Company, Inc.

views updated May 11 2018

Dole Food Company, Inc.

31355 Oak Crest Drive
Westlake Village, California 91361
U.S.A.
Telephone:(818)879-6600
Fax: (818) 879-6615
Web site: http://www.dole.com

Public Company
Incorporated: 1894 as Castle & Cooke Co., Inc.
Employees: 53,500
Sales: $4.42 billion (1998)
Stock Exchanges: New York Pacific
Ticker Symbol: DOL
NAIC: 111336 Fruit & Tree Nut Combination Farming; 111339 Other Noncitrus Fruit Farming; 111219 Other Vegetable (Except Potato) and Melon Farming; 11131 Orange Groves; 11132 Citrus (Except Orange) Groves; 111331 Apple Orchards; 31152 Ice Cream and Frozen Dessert Manufacturing; 311421 Fruit & Vegetable Canning; 311423 Dried and Dehydrated Food Manufacturing; 311411 Frozen Fruit, Juice, and Vegetable Manufacturing; 311911 Roasted Nuts and Peanut Butter Manufacturing; 42248 Fresh Fruit and Vegetable Wholesalers; 42249 Other Grocery and Related Products Wholesalers; 111422 Floriculture Production

Best known for making pineapple available across the globe, Dole Food Company, Inc., is the world’s largest producer and distributor of fresh fruits and vegetables. Dole entered the fresh flower category in 1998 through four major acquisitions that also made it the world’s largest grower of flowers. In addition, the company produces dried fruits and nuts, canned fruits, and packaged fresh vegetables and salad mixes, the fastest-growing supermarket segment in the late 1990s. Dole’s worldwide operations span more than 90 countries.

Company Origins

The company that eventually became Dole Food Company, Inc., was established in Hawaii in 1851 by Samuel Northrup Castle and Amos Starr Cooke. Cooke and Castle set up business to sell wholesale goods, and in 1858 the pair entered the food business, investing in Hawaii’s sugar industry. The business continued to grow, and in 1894 the company was incorporated as Castle & Cooke Co., Inc. A few years later, James Drummond Dole, a 21-year-old graduate of Harvard, arrived in Hawaii. With degrees in business and horticulture and a keen interest in farming, Dole hoped to make a living by growing the exotic pineapple. His cousin, Sanford B. Dole, an influential politician who became governor of the newly acquired territory of Hawaii, encouraged James’s ambition to market pineapple commercially.

By 1901 James Dole had acquired 60 acres of land 18 miles north of Honolulu, in Wahiawa, and had formed the Hawaiian Pineapple Company. His groves of smooth Cayenne pineapples were ready to be harvested two years later. Rather than trying to export the fresh fruit, Dole decided to market his pineapple in cans. He established a cannery near the pineapple groves, which allowed him to achieve the best results by canning soon after the ripened produce was harvested. The Hawaiian Pineapple Company packaged and marketed nearly 2,000 cases of canned pineapple in 1903.

Two years later Dole was shipping 25,000 cases of canned pineapple. The company’s success was facilitated by a new railroad constructed between Wahiawa and Honolulu, and the availability of ample, cheap labor allowed the company to keep its costs low. In addition, Dole persuaded the American Can Company to establish a manufacturing plant next to his cannery. For Dole this eliminated the expense of importing cans from the mainland and allowed vast quantities of pineapple to be processed quickly and cheaply. The company’s increasing supply, however, required a corresponding growth in demand, but few Americans outside those living on the California coast had ever seen, much less tasted, a pineapple. Thus, the company’s existing market was approaching saturation.

The Mainstreaming of Pineapple in the United States: 1910–30

In 1911 engineer Henry Ginaca, an employee of the Hawaiian Pineapple Company, invented a machine capable of processing 100 pineapple cylinders a minute. Such production facilities enabled the company to market its produce across a large portion of the United States. Developing a successful marketing strategy became a high priority for the company during this time, particularly important if Dole was to attain his goal of making pineapple available throughout the country.

Together with several smaller companies that were also involved in the processing of pineapple, Dole financed an advertising blitz in magazines and newspapers on the mainland, promoting canned pineapple products under exotic, foreign brand names such as Ukelele and Outrigger. As a result, demand increased significantly. Toward the end of World War I, in 1918, Dole’s Hawaiian Pineapple Company was producing one million cases annually and had gained a reputation as the largest processor of pineapples in the world. During this time Dole purchased more land in order to expand his business and in 1922 purchased the island of Lanai for a pineapple plantation. To finance the purchase, Dole sold a third interest in his company to Waialua Agricultural Company, which was a division of Castle & Cooke. By the mid-1920s Castle & Cooke had evolved into a Hawaiian real estate and land development company.

Surplus supply in the 1920s compelled Dole and other pineapple growers to pool their resources to mount an even bigger national advertising campaign. Using the new medium of radio, the company aired advertising using slogans such as “It Cuts with a Spoon like a Peach” and “You Can Thank Jim Dole for Canned Pineapples.” As a result, sales and profits increased dramatically.

New Products and Continued Growth: 1930–70

With the onset of the Great Depression, the company’s sales declined, and its advertising budget was depleted. The introduction of a new product, pineapple juice, was unsuccessful when the company could not promote it. In the first nine months of 1932, Hawaiian Pineapple lost more than $5 million, and the principal stockholders, Castle & Cooke, took over Dole’s company by acquiring an additional 21 percent. Thereafter the Hawaiian Pineapple Company became Castle & Cooke’s principal business, and beginning in 1933 the Dole name was affixed to the company’s products.

The new owners managed to reverse the downward trend of the Hawaiian Pineapple Company. With greater financial resources at its disposal, the company launched a major advertising campaign for pineapple juice, boosting sales and putting the company back on a profitable footing by 1936. Sales of pineapple juice were also facilitated by the end of Prohibition, as the company promoted pineapple juice as a mixer for liquors, particularly gin.

The company continued to report healthy profits over the next two decades. By the 1950s Americans were spending more on food than the people of any nation on earth, and food companies were quickly expanding their markets to accommodate demand. In 1961, three years after the death of James Dole, Castle & Cooke purchased the remainder of Hawaiian Pineapple. Dole products retained the Dole name because of its strong brand image.

Castle & Cooke introduced several new pineapple products during the 1950s and 1960s, including both fresh and canned pineapple processed in chunks and slices or crushed, in addition to expanding its markets to include citrus fruits, macadamia nuts, vegetables, and even tuna. Particularly noteworthy was Castle & Cooke’s entrance into the banana business. The company established pineapple and banana farms in the Philippines in 1963 to serve markets in East Asia. A year later the company bought 55 percent of the Standard Fruit & Steamship Company, one of the largest U.S. producers and importers of bananas. In 1968 Castle & Cooke bought the remainder of Standard Fruit.

Given the tremendous diversification of Dole products, advertising became critical to ensuring the company’s dominance in the marketplace. In order to capitalize on public recognition of the Dole brand name, Castle & Cooke decided to use it on the labels of several of its non-pineapple food products. In addition, television became an important medium for the company’s advertising, and by the 1960s James Dole’s dream of making pineapple as familiar as apples and oranges had been realized.

Expansion and Sustained Success in the 1970s and 1980s

During the 1970s Dole continued to diversify and grow. In 1972 Standard Fruit’s bananas began carrying the Dole label, and in the same year all food activities except sugar were organized into a single division—Castle & Cooke Foods. The company branched into mushrooms in 1973 with the acquisition of West Foods, Inc., the biggest producer of mushrooms in the western United States. Also in 1973 Castle & Cooke became the nation’s leading banana producer, adding two large banana plantations to its roster. In addition, the company took advantage of the increasing demand for nutritious foods, advertising its products as healthy additions to the diets of adults and children.

Company Perspectives:

The Dole brand means high quality, nutritious, delicious, fresh and packaged food products. Dole will continue to meet customers’ expectations by consistently providing products that meet the highest standard in the food industry —the Dole Standard. For Dole, anything less is unacceptable. Dole’s dedication to quality is a worldwide commitment solidly backed by: comprehensive programs for food safety; scientific pest management pro grams; stringent quality control measures; state-of-the-art production and transportation technologies; nutrition education to help the public understand the benefits of eating 5-9 servings of fruits and vegetables a day. Dole is a founding member of the national 5 A Day For Better Health Program and is the leader in developing technology-based nutrition education programs for children; continuous improvement through research and innovation; dedication to the safety of our workers, communities and the environment.

Despite the company’s accelerated growth, Castle & Cooke suffered financial setbacks in the early 1980s. The company was heavily in debt and had barely escaped two hostile takeover attempts. Its problems were largely resolved when it merged with Flexi-Van Corporation, a business that leased transportation equipment, in 1985. Flexi-Van’s owner, David H. Murdock, became the chairman and CEO of Castle & Cooke, and the company continued to expand and build equity in the Dole brand.

In 1986 Dole’s logo was redesigned. The resulting yellow sunburst logo was intended to convey quality, freshness, and wholesomeness. The Dole brand name came to be used to promote additional products as Dole Fresh Fruit operations extended its line to include table grapes, strawberries, nuts, raisins, cherries, and strawberries. In 1988 Dole introduced a new line of dried fruits and nuts. The following year, Dole Fresh Vegetables began marketing produce under the Dole name, dropping the Bud of California name it had been using since 1978, and the company purchased two apple growers in Washington State. By the late 1980s Dole had a global recognition factor of 98 percent.

Innovation in the 1990s

In the early 1990s Dole launched a major multimedia advertising campaign accompanied by the slogan “How’d You Do Your Dole Today?” The campaign was designed to encourage consumers to eat more vegetables and fruits, including pineapple, regularly. As a result of its effective advertising, Dole maintained the largest market share of pineapples and bananas in North America. The company also continued its tradition of diversification and innovation, introducing a line of packaged fresh vegetable products in 1990. The convenience of precut vegetables and salads appealed to consumers and soon became the fastest-growing division in grocery stores.

In 1991, under the direction of Murdock, Castle & Cooke’s stockholders voted to use the Dole name to represent all of the company’s fruit and vegetable operations, reorganizing under the name Dole Food Company, Inc. The Castle & Cooke name was retained solely for the company’s real estate business, which became a subsidiary of Dole Food Company. In the early 1990s ice cream bars were added to the list of Dole products. The company also retained interests in beer processing in Honduras, sugar refining in Hawaii, and tropical flower marketing in the Philippines. In addition to the individual consumer, Dole’s market expanded to include other food processors, who used Dole products as ingredients.

Dole began to expand more aggressively into international markets in the 1990s. While Dole products had the leading market share in the United States, Canada, Mexico, and Japan, the company began to gain a significant share of the European market. In 1989 a division of Dole Food Company was established in London, poised to take advantage of imminent changes in the integrated European market. Dole’s international growth strategy included expansion into eastern Europe, South Korea, and the Middle East. In 1992 Dole bought SAMIGA, a dried fruits and nuts firm in Europe, and in 1994 acquired an interest in Jamaica Fruit Distributors. A year later the company purchased the New Zealand operations of Chiquita Brands International, Inc. Dole’s international expansion continued in 1996 with the purchase of Pascual Hermanos, the largest grower of fruit and vegetables in Spain, and in 1998 with the acquisition of 60 percent of SABA Trading AB, a Swedish importer and distributor of fruits and vegetables. Dole also established operations in South Africa following the deregulation of that country’s fresh fruit industry.

In 1995 Dole sold its juice and beverage business, except for pineapple juice, to the Seagram Co. Ltd., which planned to market the juices under its Tropicana brand. In the same year Dole separated its food and real estate business, and Castle & Cooke began to operate independently of Dole as a real estate development firm. Dole was thus focusing solely on its operations as a producer and distributor of food products. By the end of 1995 the company served more than 90 countries, and its product line included more than 170 food products.

Taking advantage of the growing interest in packaged fresh produce, Dole introduced packaged salad mixes in 1996 and set off a major trend. Dole’s salad operations plant in Soledad, California, received Food Engineering Magazine’s Plant of the Year Award in 1996 for its design quality. The salad business grew rapidly, and Dole founded a processing plant in Ohio to service states in the Midwest and the East. Plans for new salad products were implemented to ensure continued growth through the new millennium. The company also established a salad plant in Japan in 1998 to introduce the packaged product to Japanese consumers.

Key Dates:

1851:: Castle and Cooke obtain licenses to sell wholesale products in Hawaii.
1858:: Castle and Cooke enter the food business with an investment in Hawaii’s sugar industry.
1894:: Castle & Cooke Co. is incorporated.
1901:: James Dole begins growing pineapple and incorporates his company as the Hawaiian Pineapple Company.
1932:: Castle & Cooke acquires a 21 percent ownership of Hawaiian Pineapple Company.
1961:: Castle & Cooke and the Hawaiian Pineapple Company merge.
1964:: Castle & Cooke enters the banana business.
1986:: The Dole brand enjoys a worldwide recognition rate of 98 percent.
1991:: Castle & Cooke changes its name to Dole Food Company, Inc.
1996:: Dole pioneers packaged fresh salad mixes.
1998:: Dole enters the fresh flower industry.

To further diversify its product line, Dole entered the fresh flower market through several acquisitions in 1998. The company bought Sunburst Farms, Inc., the largest U.S. importer and marketer of fresh cut flowers, as well as Finesse Farms, an importer and marketer of roses, Four Farmers, Inc., a bouquet company, and CCI Farms, a Miami-based producer, importer, and marketer of fresh-cut flowers. Dole hoped that its new flower division would generate revenues of more than $200 million a year in the United States, which, with sales of about $7 billion, was the largest floral market in the world. The floral industry’s growth was attributed in large part to the increased availability of fresh-cut flowers in supermarkets, an arena in which Dole already held a commanding position.

Although the company moved forward in its acquisitions and innovations in 1998, Dole faced numerous challenges, some presented by unpredictable weather conditions and others by unstable economic conditions in key markets. The economic crisis afflicting East Asia significantly affected Dole, as the Asian market had played an important role in Dole’s growth in the 1990s. Russia accounted for about eight percent of the global banana business, and when the Russian economy collapsed in late 1998, Dole lost an important market for its bananas. Farming was adversely affected by E1 Niño weather patterns, which generated unpredictable and uncommon weather, including heavy rains in California, flooding in Ecuador, and drought in the Philippines and Thailand. In October, Hurricane Mitch wreaked havoc on Dole operations in Honduras, resulting in $160 million in damages. In December a severe freeze in California destroyed most of the state’s citrus crops, with Dole taking a $20 million charge for losses. As a result of these events, net income declined in 1998 to $12 million, down from $160 million in 1997.

Despite Dole’s struggles in 1998, the company prepared to continue as the world’s largest producer and marketer of fresh fruits, vegetables, and flowers. Dole Fresh Vegetables attained record sales in 1998, and by mid-1999 Dole’s share of the freshcut salad category was 33.3 percent. Canned pineapple continued to be one of Dole’s strongest performers, with a leading market share of 45 percent. In the first half of 1999 revenues climbed 15 percent over sales during the same period in 1998, boosted by the acquisition of flower businesses and the investment in SABA Trading AB. Weak banana pricing affected sales in North America and Europe, however, and Dole’s net income for the first half of the year, ending June 19, 1999, was considerably lower than for the same period in 1998.

Principal Subsidiaries

Dole Fresh Fruit Company; Dole Fresh Vegetables; Dole Packaged Foods; Royal Packing Co.; CCI Farms; Finesse Farms; Four Farmers Inc.; Sunburst Farms Inc.; Beebe Orchard Co.; Wells & Wade Fruit Co.; SABA Trading AB (60%; Sweden).

Principal Operating Units

Dole North America; Dole Latin America; Dole Asia; Dole Europe.

Principal Competitors

Chiquita Brands International, Inc.; Fresh Del Monte Produce Inc.; Fyffes plc.

Dole Food Company, Inc.

views updated May 23 2018

Dole Food Company, Inc.

31355 Oak Crest Drive
Westlake Village, California 91361
U.S.A.
(818) 879-6600
Fax: (818) 879-6973

Public Company
Incorporated: 1894 as the Castle & Cooke Co., Inc.
Sales: $3.4 billion
Employees: 50,000
Stock Exchanges: New York Pacific
SICs: 0174 Citrus Fruits; 5148 Fresh Fruits and Vegetables; 5149 Groceries & Related Products, Nee; 2033 Canned Fruits & Vegetables; 2034 Dehydrated Fruits, Vegetables, Soups; 2024 Ice Cream & Frozen Desserts; 6552 Subdividers & Developers, Nec

The Dole Food Company, Inc., is the world’s largest producer and distributer of pineapple and a global leader in the processing and marketing of a wide variety of fruits, nuts, and vegetables. The company’s real estate interests, managed through its 80 percent-owned subsidiary, Castle & Cooke Co., Inc., represent a significant sideline, as do two luxury resorts in Hawaii owned and operated by Dole.

Christopher Columbus first brought pineapples from the Caribbean to Europe, where they were called “ananas,” a corruption of the Indian word “nana,” or aromatic. However, the English referred to the fruit as pineapple, finding it similar in appearance to the pine cone and as juicy and crisp as an apple. For centuries, pineapples remained expensive delicacies.

In the 1880s, English seaman Captain John Kidwell decided to try mass marketing pineapple, and after disappointing attempts to cultivate the wild Hawaiian variety, he opted to import a Florida pineapple known as the “smooth Cayenne.” However, the fresh pineapple had to be shipped thousands of miles to market, which took several weeks, with no refrigeration.

While Kidwell never made a successful business from commercially grown pineapple, James Drummond Dole did. A 21-year-old graduate of Harvard, Dole arrived in Hawaii in 1899. His cousin, Sanford B. Dole, an influential politician who became governor of the newly acquired territory of Hawaii, encouraged James’s ambition to market pineapple commercially.

By 1901 James Dole had acquired 60 acres of land 18 miles north of Honolulu, in Wahiawa, and had formed the Hawaiian Pineapple Company. His groves of smooth Cayenne pineapples were ready to be harvested two years later. Rather than trying to export the fresh fruit, Dole decided to market his pineapple in cans. He established his cannery near his pineapple groves, allowing him to achieve the best results by canning soon after harvesting the ripened produce. The Hawaiian Pineapple Company packaged and marketed nearly 2,000 cases of canned pineapple in 1903.

Two years later Dole was shipping 25,000 cases of canned pineapple. The company’s success was facilitated by a new railroad constructed between Wahiawa and Honolulu, as well as by the fact that ample, cheap labor was available, allowing the company to keep its costs low. In addition, Dole persuaded the American Can Company to establish a manufacturing plant next to his cannery. For Dole, this eliminated the expense of importing cans from the mainland, so that vast quantities of pineapple could be processed quickly and cheaply. However, the company’s increased supply depended on a corresponding demand, and, outside of residents on the California coast, few Americans had ever seen, much less tasted, pineapple. Furthermore, the company’s existing market was already approaching saturation.

In 1911 engineer Henry Ginaca, an employee of the Hawaiian Pineapple Company, invented a machine that could process 100 pineapple cylinders a minute. Such production facilities enabled the company to market its produce in much of the United States. Developing a successful marketing strategy became a high priority for the company during this time.

Together with several smaller companies also involved in the processing of pineapple, Dole financed an advertising blitz in the mainland’s magazines and newspapers, promoting canned pineapple products under exotic, foreign brand names, such as Ukelele and Outrigger. As a result, demand increased significantly. Toward the end of World War I, in 1918, Dole’s Hawaiian Pineapple Company was producing one million cases annually and had gained a reputation as the largest processor of pineapples in the world. During this time, Dole purchased more land in order to expand his business.

By the mid-1920s Castle & Cooke Ltd., a Hawaiian real estate and land development company established in 1851, had become the dominant stockholder in Hawaiian Pineapple. Also during this time, surplus supply compelled Dole and other pineapple growers to pool their resources to mount an even bigger national advertising campaign than they had before the war. Using the new medium of radio, the company aired advertising using slogans such as “It Cuts with A Spoon—Like a Peach” and “You Can Thank Jim Dole for Canned Pineapples.” As a result, sales and profits increased dramatically.

However, with the onset of the Great Depression, the company’s sales declined and its advertising budget was depleted. The introduction of a new product, pineapple juice, was unsuccessful due to the company’s inability to successfully promote it. In the first nine months of 1932, Hawaiian Pineapple lost over $5 million, and the principal stockholders, Castle & Cooke, took over Dole’s company. Thereafter the Hawaiian Pineapple Company became Castle & Cooke’s principal business, and while Dole’s name was affixed to the company’s products in 1934, Dole himself was relegated to an essentially powerless role.

Nevertheless, the new owners managed to reverse the downward trend of the Hawaiian Pineapple Company. With greater financial resources at its disposal, the company launched a major advertising campaign for pineapple juice, boosting sales and putting the company back on a profitable footing by 1936. Sales of pineapple juice were also facilitated by the end of Prohibition, as the company promoted pineapple juice as a mixer for liquors, particularly gin.

The company continued to report healthy profits over the next two decades. By the 1950s Americans were spending more on food than any nation on earth, and food companies were quickly expanding their markets to accommodate demand. Castle & Cooke introduced several new pineapple products during this time, including both fresh and canned pineapple, processed in chunks and slices or crushed, in addition to expanding their markets to include bananas, citrus fruit, macadamia nuts, vegetables, and even tuna.

Given the tremendous diversification of Dole products, advertising became critical to ensuring the company’s dominance in the marketplace. First, in order to capitalize on public recognition of the Dole brand name, Castle & Cooke decided to use it on the labels of several of its non-pineapple food products. Also, television became an important medium, and by the 1960s James Dole’s dream of making pineapple as familiar as apples and oranges had been realized.

During the 1970s and 1980s, Dole took advantage of the increasing demand for nutritious foods, advertising its products as healthy additions to the diets of adults and children. During this time, the company introduced Dole canned pineapple in a “lite,” low calorie, natural juice. In the early 1990s, Dole launched a major, multimedia advertising campaign accompanied by the slogan “How’d You Do Your Dole Today?” to encourage consumers to eat more vegetables and fruit, including pineapple, regularly. As a result of its effective advertising, Dole has maintained the biggest market share of pineapples and bananas in North America.

In 1991, under chairperson and CEO David H. Murdock, Castle & Cooke’s stockholders voted to use the Dole name to represent all of their fruit and vegetable operations, reorganizing under the name Dole Food Company, Inc. The Castle & Cooke name was retained solely for the company’s real estate business, which became a subsidiary of Dole Food, with operations in Hawaii, California, and Arizona. No longer dependent on pineapple as its sole source of profits, the Dole Food Company conglomerate produces a variety of fresh and packaged foods and beverages. The product line includes canned, frozen, and dried fruits, fruit juices and beverages, 30 different types of vegetables, and a variety of nuts. In the early 1990s, ice cream bars were added to the list of Dole food products. The company also retained interests in beer processing in Honduras, sugar refining in Hawaii, and tropical flower marketing in the Philippines. In addition to the individual consumer, Dole’s market has been expanded to include other food processors, who use Dole products as ingredients.

Expansion into international markets has also been important to the company. While Dole products have the leading market share in the United States, Canada, Mexico, and Japan, the company has also gained a significant share of the European market. In 1989 a division of Dole Foods was established in London, poised to take advantage of imminent changes in the European common market. Since 1991, Dole’s international growth strategy has included expansion into eastern Europe, South Korea, and the Middle East, where eight branch offices have been opened. In 1993 Dole was operating in more than 70 countries worldwide. Furthermore, Dole has established important manufacturing centers in Thailand and the Philippines.

Dole has survived several fluctuations in the market and remains the most widely recognized brand of canned fruits and vegetables in North America and the world. The company’s continued success depends on its ability to penetrate international markets as well as to provide an increasingly health conscious public with the produce they demand, two areas in which the company has excelled.

Principal Subsidiaries

Castle & Cooke Company, Inc. (80%)

Dole Food Company, Inc.

views updated May 29 2018

Dole Food Company, Inc.

One Dole Drive
Westlake Village, California 91362
U.S.A.
Telephone: (818) 879-6600
Fax: (818) 879-6615
Web site: http://www.dole.com

Private Company
Incorporated: 1894 as Castle & Cooke Co., Inc.
Employees: 59,000
Sales: $4.77 billion (2003)
NAIC: 11121 Vegetable and Melon Farming; 111211 Potato Farming; 111219 Other Vegetable (Except Potato) and Melon Farming; 111310 Orange Groves; 111320 Citrus (Except Orange) Groves; 111331 Apple Orchards; 111332 Grape Vineyards; 111333 Strawberry Farming; 111334 Berry (Except Strawberry) Farming; 111335 Tree Nut Farming; 111336 Fruit and Tree Nut Combination Farming; 111339 Other Noncitrus Fruit Farming; 111422 Floriculture Production; 311411 Frozen Fruit, Juice, and Vegetable Manufacturing; 311421 Fruit & Vegetable Canning; 311423 Dried and Dehydrated Food Manufacturing; 311520 Ice Cream and Frozen Dessert Manufacturing; 311911 Roasted Nuts and Peanut Butter Manufacturing

Best known for its pineapples, Dole Food Company, Inc. promotes its Dole brand of fresh and packaged food and nonfood products through what it calls its 'Dole Standard.' With its fully integrated operations of sourcing, growing, processing, distributing, and marketing, it is the world's largest producer and distributor of fresh fruits and vegetables. Specifically, the company is one of the world's leading producers of bananas and pineapples, along with being a major marketer of apples, grapefruit, oranges, pears, plums, table grapes, other tropical and citrus fruits, dried fruits, canned fruits, fresh-cut flowers, and nuts. In recent years, Dole has added value-added products, such as packaged salad mixes, fresh vegetables, and novelty-canned pineapple shapes. As of 2004, Dole became one of the largest importers and marketers of fresh-cut flowers in the United States. The Dole brand, which was introduced in 1933, is one of the most recognized brands for fresh and packaged produce in the United States. In all, Dole sells or sources over 200 products in more than 90 countries around the world.

Company Origins

In 1851, Samuel Northrup Castle and Amos Starr Cooke established in Hawaii the company that eventually became Dole Food Company, Inc. Cooke and Castle set up business to sell wholesale goods, and in 1858 the pair entered the food business, investing in Hawaii's sugar industry. The business continued to grow, and in 1894 the company was incorporated as Castle & Cooke Co., Inc. A few years later, James Drummond Dole, a 21-year-old graduate of Harvard, arrived in Hawaii. With degrees in business and horticulture and a keen interest in farming, Dole hoped to make a living by growing the exotic pineapple. His cousin, Sanford B. Dole, an influential politician who became governor of the newly acquired territory of Hawaii, encouraged James's ambition to market pineapple commercially.

By 1901 James Dole had acquired 60 acres of land 18 miles north of Honolulu, in Wahiawa, and had formed the Hawaiian Pineapple Company. His groves of smooth Cayenne pineapples were ready to be harvested two years later. Rather than trying to export the fresh fruit, Dole decided to market his pineapple in cans. He established a cannery near the pineapple groves, which allowed him to achieve the best results by canning soon after the ripened produce was harvested. The Hawaiian Pineapple Company packaged and marketed nearly 2,000 cases of canned pineapple in 1903.

Two years later Dole was shipping 25,000 cases of canned pineapple. The company's success was facilitated by a new railroad constructed between Wahiawa and Honolulu, and the availability of ample, cheap labor allowed the company to keep its costs low. In addition, Dole persuaded the American Can Company to establish a manufacturing plant next to his cannery. For Dole this eliminated the expense of importing cans from the mainland and allowed vast quantities of pineapple to be processed quickly and cheaply. The company's increasing supply, however, required a corresponding growth in demand, but few Americans outside those living on the California coast had ever seen, much less tasted, a pineapple. Thus, the company's existing market was approaching saturation.

The Mainstreaming of Pineapple in the United States: 1910–30

In 1911 engineer Henry Ginaca, an employee of the Hawaiian Pineapple Company, invented a machine capable of processing 100 pineapple cylinders a minute. Such production facilities enabled the company to market its produce across a large portion of the United States. Developing a successful marketing strategy became a high priority for the company during this time, particularly important if Dole was to attain his goal of making pineapple available throughout the country.

Together with several smaller companies that were also involved in the processing of pineapple, Dole financed an advertising blitz in magazines and newspapers on the mainland, promoting canned pineapple products under exotic, foreign brand names such as Ukelele and Outrigger. As a result, demand increased significantly. Toward the end of World War I, in 1918, Dole's Hawaiian Pineapple Company was producing one million cases annually and had gained a reputation as the largest processor of pineapples in the world. During this time Dole purchased more land in order to expand his business and in 1922 purchased the island of Lanai for a pineapple plantation. To finance the purchase, Dole sold a third interest in his company to Waialua Agricultural Company, which was a division of Castle & Cooke. By the mid-1920s Castle & Cooke had evolved into a Hawaiian real estate and land development company.

Surplus supply in the 1920s compelled Dole and other pineapple growers to pool their resources to mount an even bigger national advertising campaign. Using the new medium of radio, the company aired advertising using slogans such as "It Cuts with a Spoon like a Peach" and "You Can Thank Jim Dole for Canned Pineapples." As a result, sales and profits increased dramatically.

New Products and Continued Growth: 1930–70

With the onset of the Great Depression, the company's sales declined, and its advertising budget was depleted. The introduction of a new product, pineapple juice, was unsuccessful when the company could not promote it. In the first nine months of 1932, Hawaiian Pineapple lost more than $5 million, and the principal stockholders, Castle & Cooke, took over Dole's company by acquiring an additional 21 percent. Thereafter the Hawaiian Pineapple Company became Castle & Cooke's principal business, and beginning in 1933 the Dole name was affixed to the company's products.

The new owners managed to reverse the downward trend of the Hawaiian Pineapple Company. With greater financial resources at its disposal, the company launched a major advertising campaign for pineapple juice, boosting sales and putting the company back on a profitable footing by 1936. The end of Prohibition also facilitated sales of pineapple juice, as the company promoted pineapple juice as a mixer for liquors, particularly gin.

The company continued to report healthy profits over the next two decades. By the 1950s Americans were spending more on food than the people of any nation on earth, and food companies were quickly expanding their markets to accommodate demand. In 1961, three years after the death of James Dole, Castle & Cooke purchased the remainder of Hawaiian Pineapple. Dole products retained the Dole name because of its strong brand image.

Castle & Cooke introduced several new pineapple products during the 1950s and 1960s, including both fresh and canned pineapple processed in chunks and slices or crushed, in addition to expanding its markets to include citrus fruits, macadamia nuts, vegetables, and even tuna. Particularly noteworthy was Castle & Cooke's entrance into the banana business. The company established pineapple and banana farms in the Philippines in 1963 to serve markets in East Asia. A year later the company bought 55 percent of the Standard Fruit & Steamship Company, one of the largest U.S. producers and importers of bananas. In 1968 Castle & Cooke bought the remainder of Standard Fruit.

Given the tremendous diversification of Dole products, advertising became critical to ensuring the company's dominance in the marketplace. In order to capitalize on public recognition of the Dole brand name, Castle & Cooke decided to use it on the labels of several of its non-pineapple food products. In addition, television became an important medium for the company's advertising, and by the 1960s James Dole's dream of making pineapple as familiar as apples and oranges had been realized.

Expansion and Sustained Success in the 1970s–80s

During the 1970s Dole continued to diversify and grow. In 1972 Standard Fruit's bananas began carrying the Dole label, and in the same year all food activities except sugar were organized into a single division—Castle & Cooke Foods. The company branched into mushrooms in 1973 with the acquisition of West Foods, Inc., the biggest producer of mushrooms in the western United States. Also in 1973 Castle & Cooke became the nation's leading banana producer, adding two large banana plantations to its roster. In addition, the company took advantage of the increasing demand for nutritious foods, advertising its products as healthy additions to the diets of adults and children.

Company Perspectives:

Dole Food Company, Inc. is committed to supplying the consumer and our customers with the finest, high-quality products and to leading the industry in nutrition research and education. Dole supports these goals with a corporate philosophy of adhering to the highest ethical conduct in all its business dealings, treatment of its employees, and social and environmental policies.

Despite the company's accelerated growth, Castle & Cooke suffered financial setbacks in the early 1980s. The company was heavily in debt and had barely escaped two hostile takeover attempts. Its problems were largely resolved when it merged with Flexi-Van Corporation, a business that leased transportation equipment, in 1985. Flexi-Van's owner, David H. Murdock, became the chairman and CEO of Castle & Cooke, and the company continued to expand and build equity in the Dole brand.

In 1986 Dole's logo was redesigned. The resulting yellow sunburst logo was intended to convey quality, freshness, and wholesomeness. The Dole brand name came to be used to promote additional products as Dole Fresh Fruit operations extended its line to include table grapes, strawberries, nuts, raisins, cherries, and strawberries. In 1988 Dole introduced a new line of dried fruits and nuts. The following year, Dole Fresh Vegetables began marketing produce under the Dole name, dropping the Bud of California name it had been using since 1978, and the company purchased two apple growers in Washington State. By the late 1980s Dole had a global recognition factor of 98 percent.

Innovation in the 1990s

In the early 1990s Dole launched a major multimedia advertising campaign accompanied by the slogan "How'd You Do Your Dole Today?" The campaign was designed to encourage consumers to eat more vegetables and fruits, including pineapple, regularly. As a result of its effective advertising, Dole maintained the largest market share of pineapples and bananas in North America. The company also continued its tradition of diversification and innovation, introducing a line of packaged fresh vegetable products in 1990. The convenience of precut vegetables and salads appealed to consumers and soon became the fastest-growing division in grocery stores.

In 1991, under the direction of Murdock, Castle & Cooke's stockholders voted to use the Dole name to represent all of the company's fruit and vegetable operations, reorganizing under the name Dole Food Company, Inc. The Castle & Cooke name was retained solely for the company's real estate business, which became a subsidiary of Dole Food Company. In the early 1990s ice cream bars were added to the list of Dole products. The company also retained interests in beer processing in Honduras, sugar refining in Hawaii, and tropical flower marketing in the Philippines. In addition to the individual consumer, Dole's market expanded to include other food processors, which used Dole products as ingredients.

Dole began to expand more aggressively into international markets in the 1990s. While Dole products had the leading market share in the United States, Canada, Mexico, and Japan, the company began to gain a significant share of the European market. In 1989 a division of Dole Food Company was established in London, poised to take advantage of imminent changes in the integrated European market. Dole's international growth strategy included expansion into eastern Europe, South Korea, and the Middle East. In 1992 Dole bought SAMICA, a dried fruits and nuts firm in Europe, and in 1994 acquired an interest in Jamaica Fruit Distributors. A year later the company purchased the New Zealand operations of Chiquita Brands International, Inc. Dole's international expansion continued in 1996 with the purchase of Pascual Hermanos, the largest grower of fruit and vegetables in Spain, and in 1998 with the acquisition of 60 percent of SABA Trading AB, a Swedish importer and distributor of fruits and vegetables. Dole also established operations in South Africa following the deregulation of that country's fresh fruit industry.

In 1995 Dole sold its juice and beverage business, except for pineapple juice, to the Seagram Co. Ltd., which planned to market the juices under its Tropicana brand. In the same year Dole separated its food and real estate business, and Castle & Cooke began to operate independently of Dole as a real estate development firm. Dole was thus focusing solely on its operations as a producer and distributor of food products. By the end of 1995 the company served more than 90 countries, and its product line included more than 170 food products.

Taking advantage of the growing interest in packaged fresh produce, Dole introduced packaged salad mixes in 1996 and set off a major trend. Dole's salad operations plant in Soledad, California, received Food Engineering Magazine's Plant of the Year Award in 1996 for its design quality. The salad business grew rapidly, and Dole founded a processing plant in Ohio to service states in the Midwest and the East. Plans for new salad products were implemented to ensure continued growth through the first few years of the 2000s. The company also established a salad plant in Japan in 1998 to introduce the packaged product to Japanese consumers.

Key Dates:

1851:: Castle and Cooke obtain licenses to sell wholesale products in Hawaii.
1858:: Castle and Cooke enter the food business with an investment in Hawaii's sugar industry.
1894:: Castle & Cooke Co. is incorporated.
1901:: James Dole begins growing pineapple and incorporates his company as the Hawaiian Pineapple Company.
1932:: Castle & Cooke acquires a 21 percent ownership of Hawaiian Pineapple Company.
1961:: Castle & Cooke and the Hawaiian Pineapple Company merge.
1964:: Castle & Cooke enters the banana business.
1986:: The Dole brand enjoys a worldwide recognition rate of 98 percent.
1991:: Castle & Cooke changes its name to Dole Food Company, Inc.
1996:: Dole pioneers packaged fresh salad mixes.
2003:: CEO David Murdock completes deal that converts Dole to private company.

To further diversify its product line, Dole entered the fresh flower market through several major acquisitions in 1998. The company bought Sunburst Farms, Inc., the largest U.S. importer and marketer of fresh cut flowers, as well as Finesse Farms, an importer and marketer of roses, Four Farmers, Inc., a bouquet company, and CCI Farms, a Miami-based producer, importer, and marketer of fresh-cut flowers. Dole hoped that its new flower division would generate revenues of more than $200 million a year in the United States, which, with sales of about $7 billion, was the largest floral market in the world. The floral industry's growth was attributed in large part to the increased availability of fresh-cut flowers in supermarkets, an arena in which Dole already held a commanding position.

Although the company moved forward in its acquisitions and innovations in 1998, Dole faced numerous challenges, some presented by unpredictable weather conditions and others by unstable economic conditions in key markets. The economic crisis afflicting East Asia significantly affected Dole, as the Asian market had played an important role in Dole's growth in the 1990s. Russia accounted for about 8 percent of the global banana business, and when the Russian economy collapsed in late 1998, Dole lost an important market for its bananas. El Niproduce market grew at a rate that was above the rate of population growth, which was due primarily to increased retail emphasis on attracting customers with fresh produce; consistent trends in greater consumer demand for healthy, fresh, and convenient foods; and increased retailer area devoted to produce. However, during this same period of time, Dole continued to suffer from adverse weather and worldwide economic shifts. Its revenues only slightly increased from 1999 to 2003.

Net revenues in 2000 were less than in 1999 due to a reduction in banana profits caused by a deterioration in the euro-to-U.S. dollar exchange rate; a large price increase in fuel rates; an oversupply of bananas; and a longer-than-expected time period to achieve profitability of its consolidated flower operations. As a result, performance improvement and cost reduction plans were enacted in the Fresh Fruits and Fresh Flower segments. These activities helped to improve net income. Dole's other segments—Fresh Vegetables, Packaged Foods, and Beverages—performed well in 2000. Fresh Vegetables announced record earnings as a result of reliable growth in the fresh-cut salads business and favorable pricing in the commodity vegetables business. The canned pineapple business—within Packaged Foods—maintained its 50 percent market share in North America with the introduction of "Fruit Bowls" plastic cups. The beverage business in Honduras returned to normal after Hurricane Mitch. To better concentrate on its primary businesses of fruits, vegetables, packaged foods, and flowers, Castle & Cooke, Inc., a diversified real estate company within Dole, was privatized in 2000.

In 2001, Dole began a concerted effort to reduce operating costs and to liquidate non-core and/or under-performing businesses. As a result, Dole discontinued its Beverages segment when it sold its 97 percent stake in the Cerveceria Hondureña S.A. beverage operations. Cash proceeds of $537 million from the sale were used to reduce its debt. In December, Dole's Florida-based fresh-cut flowers distribution operation was transferred into a new 328,000 square-foot building. Net revenues for 2001 were much higher in most of Dole's core businesses primarily as a result of higher prices and volumes for its Premium Select pineapples in North America and Europe; increased volumes for its North American packaged salads business; higher prices and volumes for North American bananas; and increased volumes of its "Fruit Bowls" and "Fruit-n-Gel Bowls" in North America. These increases were offset by the negative impact on revenues from asset sales and business shutdowns.

In 2002, Dole continued its efforts to reduce costs and to eliminate undesirable businesses. Financial results in 2002 were somewhat improved over 2001, with net revenues up while net income went down, being adversely effected by a one-time business reconfiguration charge. Dole's Fresh Fruit segment received strong returns especially in North America, Europe, and Asia, primarily due to its programs in Premium Select pineapple and organic banana. In Dole's Fresh Vegetables segment, its packaged salads increased its market share by 1 percent, to 38.2 percent. Overall, weaker commodity prices were balanced by continued growth in its packaged salads business. In Dole's Packaged Foods segment, financial results improved, gaining market share in canned pineapple and Fruit Bowls (up 4.2 share points from the previous year, to 43.9 percent). Dole's Fresh Flowers segment reduced its operating loss as a result of an improved cost structure. Dole completed its selling activities of non-core and/or unprofitable businesses, when it sold its Pascual Hermanos vegetable business in Spain and its Saman dried fruit and nut business in France.

Cost-cutting measures in the early 2000s, including job deductions and sale of non-core/unprofitable businesses, helped to increase Dole's earnings so that net revenues grew to $4.77 billion in 2003. In order to maximize future long-term growth and to minimize uncertain short-term exposure to the public equities market, CEO David Murdock and his management partners took the company private in 2003. Murdock and his partners acquired 76 percent of the company's shares as part of a buyout valued at about $2.4 billion ($1.4 billion in stock, plus debt assumption of $1 billion), which gave them total ownership. Subsequently, the company expanded with increased 2003 sales of nearly 9 percent and increased earnings of about 18 percent. In addition, Dole repaid over $200 million in bank debt. Also, in 2003, Dole opened its Dole Nutrition Institute, a group dedicated to educating the public about the health benefits of fruits and vegetables. Dole also broke ground on the new Dole Wellness Center, Spa, and Hotel, which will consist of medical facilities with state-of-the-art diagnostic services, 267-room hotel, conference center, full-service spa and fitness center, and television production facility.

As of 2004, Doles' primary business segments were: Fresh Fruits, Fresh Vegetables, Packaged Foods, and Fresh Flowers. During 2004, Dole purchased J.R. Wood, Inc., a manufacturer and marketer of fresh frozen fruit products, and Coastal Berry Co. LLC, one of the largest producers of strawberries in the United States.

By holding the number one or number two position within its industry with regards to many of its major products, Dole has positioned itself to meet the future requirements of retailers through the delivery of high-quality and innovative produce, competitive product pricing, and reliable service. The company has also diversified globally so that its operations in 28 countries now distribute products to more than 90 countries; a plan that helps Dole reduce losses from natural disasters and political problems. Dole has built a state-of-the-art production, processing, transportation, and distribution structure and has become among the lowest cost producers within many of its major product lines. Over many decades, Dole has built a strong global brand that is easily recognized by consumers worldwide. Over the last few years, the company has begun to focus its operations on identifying to consumers why fruits and vegetables are beneficial to good nutrition.

Principal Subsidiaries

Dole Fresh Fruit Company; Dole Fresh Vegetables; Dole Packaged Foods; Royal Packing Co.; CCI Farms; Finesse Farms; Coastal Berry Co. LLC; Four Farmers Inc.; Floramerica Co.; J.R. Wood, Inc.; Sunburst Farms Inc.; Beebe Orchard Co.; Wells & Wade Fruit Co.; SABA Trading AB (60%; Sweden).

Principal Operating Units

Dole Latin America; Dole Asia; Dole Europe; Dole Worldwide Packaged Foods; Dole Worldwide Fresh Vegetables; Dole Fresh Flowers; Dole North America Tropical Fresh Fruit; Dole Chile.

Principal Competitors

Chiquita Brands International, Inc.; Fresh Del Monte Produce Inc.; Del Monte Foods Company; Fyffes plc.

Dole Food Company, Inc.

views updated May 21 2018

Dole Food Company, Inc.

FOUNDED: 1851 as Castle & Cooke

Contact Information:

HEADQUARTERS: 31365 Oak Crest Dr.
Westlake Village, CA 91361
PHONE: (818)879-6600
FAX: (818)879-6618
URL: http://www.dole.com

OVERVIEW

Dole Food Company, Inc. is widely known as a pioneer in providing tropical fruit products to the United States. Since its founding in Hawaii in 1851 as Castle & Cooke, Dole (now headquartered in California) has grown into the world's largest grower and supplier of fresh fruits and vegetables. In addition to tropical fruits such as pineapples and bananas, Dole grows and distributes other fruits from apples to oranges, as well as over 20 vegetables. Dole claims to be the premier North American supplier of grapes, lettuce, celery, cauliflower, and dried fruits and nuts. Other Dole products include canned products, pre-packaged salads, and precut vegetables.

Dole products are sold throughout the United States and in over 90 other countries. Although Dole also operated other types of businesses, in the mid- and late 1990s it decided to refocus on its best-known food products. It sold its juice-producing operations, except for pineapple juice, to The Seagram Company in 1995, and in that year also spun off its real estate and resort operations in Hawaii to a separate company, Castle & Cooke. In 1997 Dole's sales were over $4.3 billion.

COMPANY FINANCES

Dole's sales figures from 1993 through 1997 show constant growth. According to the company's 1997 annual report, its sales were: $3.10 billion in 1993; $3.50 billion in 1994; $3.80 billion in 1995; $3.84 billion in 1996; and $4.30 billion in 1997. During these five years, Dole's net income doubled, from $78 million in 1993 to $160 million in 1997. (This figure doubled even though there was a $97-million loss in 1995 from the discontinued operations.)

HISTORY

The history of Dole Food Company, Inc. is actually the story of two companies whose paths crossed in Hawaii early in the twentieth century. Castle & Cooke had been founded by missionaries in 1851 to provide posts in that part of the world with staple items. Samuel Castle and Amos Cooke had formed an alliance to manage the church's depository. Seven years later they became agents for sugar concerns in Hawaii. As the nineteenth century brought growth and investors to Hawaii, Castle & Cooke eventually became a prosperous land development and real estate company.

Meanwhile, James Drummond Dole came to Hawaii in 1899, after graduating from Harvard. His cousin, Sanford B. Dole, was a politician who became governor of Hawaii, which had been recently acquired as a U.S. territory. He urged James to try to develop a commercial market for pineapple. James took his cousin's advice and bought 60 acres of land near Honolulu. James Dole built a cannery to process his fruit for shipping, and in 1903 his newly formed Hawaiian Pineapple Company successfully shipped and sold 2,000 cases of canned pineapple. Within only a few years, this number had jumped to 25,000 cases.

In its early years, Dole's company sold pineapple largely to the California region, and many people in the United States had never seen or tasted a pineapple. Dole began a national advertising campaign for his canned fruit, hoping to entice new customers by giving the canned fruit appealing brand names like "Ukulele." The company also employed a new advertising concept, publishing recipes in the newly popular "ladies' magazines." By the end of World War I, production had risen to a million cases of pineapple a year, and the Hawaiian Pineapple Company was a world leader in processing pineapple. In 1922 Dole bought the island of Lana'i and established a huge plantation. His company's biggest investor turned out to be Castle & Cooke, now a profitable land development firm that bought one-third of Dole's company.

Dole's company lost millions of dollars in the early 1930s. Castle & Cooke bought a controlling share of the Hawaiian Pineapple Company and, although Dole remained as chairman of the board until 1948, Castle & Cooke was in charge, and was responsible for restoring the company to financial health.

In 1961 Castle & Cooke purchased the remainder of the Hawaiian Pineapple Company. It also began expanding its operations beyond Hawaii, by establishing plantations in the Philippines to continue to supply markets with both pineapple and bananas. The banana business expanded further in 1964 with the purchase of Standard Fruit of New Orleans. Because the Dole brand was already well known to the public from sales of pineapple products, it was also added to new products. Television advertising became a key component of Castle & Cooke's marketing efforts. In the 1970s and 1980s the company emphasized the health benefits of its products. A huge media campaign in the early 1990s encouraged consumers to eat more fruits and vegetables, of course emphasizing pineapples.

However, the 1980s and early 1990s brought added financial difficulties to the company. Castle & Cooke was carrying a huge amount of debt, and it had to struggle through two unsuccessful takeover attempts in the mid-1980s. To protect itself, Castle & Cooke merged with Flexi-Van, a container leasing firm operated by David H. Murdock. Under Murdock's direction, the company was reduced to its most basic ventures: fruit and real estate. In 1991, Castle & Cooke changed its name to the Dole Food Company, Inc. Murdock unexpectedly announced that Dole would end its pineapple growing operations on Lana'i, and instead would develop resort properties there through its Castle & Cooke subsidiary.

In the mid-1990s Dole decided to expand its operations in many directions. In 1994 it acquired a share of Jamaica Fruit Distributors, bought Dromedary (the date company), and acquired Made in Nature, an organic produce and food supplier that at the time was the largest in that sector of the organic foods industry. Dole had hoped to capture a part of the organic food market, which was then posting double-digit growth each year. However, only a little over a year later, Dole decided to make another sharp change of direction. It sold Made in Nature back to its original owners, and spun off its Castle & Cooke real estate and resorts division to its shareholders in order to focus on its food-related businesses. Dole also finalized the sale of its global juice business to Seagram's Tropicana juice division. Dole retained its canned pineapple juice unit, entering into a long-term supply contract arrangement with Tropicana. This arrangement allowed Dole to keep active in the juice market, since pineapple juice is a base ingredient for many blended juices. In 1996 Dole expanded its juice operations once again, by purchasing the controlling share of Pascual Hermanos, Spain's leading citrus fruit and vegetable producer. It also decided to close its California dried fruit facility, which had suffered losses for a prolonged time.

STRATEGY

James Drummond Dole founded his company on a commitment to "quality, quality, and quality," as he said in the company's original statement of principles. Aside from this basic principle, Dole also has been perceptive in its choice of manufacturing and marketing techniques. In its early days Dole took advantage of new technology (fruit canning), which led to its initial success. In the mid-twentieth century, the company turned to another new form of technology, television advertising, to greatly increase its sales. Its advertising campaign of the early 1990s ("How'd You Do Your Dole Today?") capitalized on the growing public awareness of the need to eat more fruits and vegetables. Dole also repeatedly expanded its product line and then cut back to its basic operations in times of difficulty. International expansion also has played a key role in the company's operations, especially in the 1990s.

INFLUENCES

Previous efforts to ship fresh pineapple to the U.S. mainland from Hawaii had failed miserably, since the trip took weeks by boat and there was no way to refrigerate the fruit during the journey. However, James Dole decided to try a different approach, and built a cannery to process his fruit for shipping. In 1903 he successfully shipped and sold 2,000 cases of canned pineapple.

The combination of the Great Depression and the initial failure of a new product, pineapple juice, led to Dole losing millions of dollars in the early 1930s. Ironically, it was the initially unsuccessful pineapple juice that helped the company to recover. With the end of Prohibition, it advertised pineapple juice as a great mixer with liquor.

FAST FACTS: About Dole Food Company, Inc.

Ownership: Dole Food Company, Inc. is a publicly owned company traded on the New York Stock Exchange.

Ticker symbol: DOL

Officers: David H. Murdock, Chmn. & CEO, 74, $1,369,842; David A. DeLorenzo, Pres. & COO, 51, $823,231; Gregory L. Costley, Pres., Dole North America Fruit, 44

Employees: 44,000 worldwide

Principal Subsidiary Companies: Dole Food Company, Inc. operates numerous subsidiaries in Asia, Latin America, and Europe, as well as the United States, grouped as Dole Holdings, Inc., and Castle & Cooke Worldwide Limited. Its real estate and resort operations were spun off in 1995 as Castle & Cooke, Inc., and all of its juice operations (except pineapple juice) were sold to The Seagram Company Ltd. in the same year.

Chief Competitors: Dole Fruit Company, Inc.'s top competitors include: Chiquita Brands; Del Monte; and Tri Valley Growers.

CURRENT TRENDS

Dole has placed an increased emphasis on marketing a wide variety of products that are nutritious, tasty, and convenient. As of 1998 it sold more than 70 varieties of fruits and vegetables, as well as over 100 processed and packaged fruits, juices, and nuts. Dole recognized the consumer trend toward convenient packaged foods that also are healthy. To address this rapidly growing demand, it introduced a line of pre-cut vegetable and salad mixes. Following its rapid series of acquisitions and sales of operations in the mid-1990s, Dole seems to have regrouped itself around its founder James Drummond Dole's original statement of principles, a commitment to "quality, quality, and quality."

PRODUCTS

Produce under the Dole brand includes dried fruits and nuts (almonds, prunes, raisins, and packaged trail mixes); fresh fruits (bananas, pineapples, coconuts, stone and tree fruits, grapefruit, lemons, oranges, tangelos, tangerines, kiwifruit, pears, and raspberries); fresh vegetables (artichokes, asparagus, bell peppers, broccoli, carrots, lettuce, onions, peas, potatoes, and radishes); and packaged foods (canned fruits and vegetables, freshly cut packaged salad mixes, and other freshly-cut salad ingredients). The company also distributes date products under the Dromedary label.

CORPORATE CITIZENSHIP

Dole is a sponsor of the "Shark Shootout," an annual golf tournament held in California and hosted by golfer Greg "The Shark" Norman. Established in 1989, the tournament raises funds for children's charities. Dole also donates funds and products to community health-oriented programs, particularly in the area of nutrition education for children, and to food programs for the needy. It created the first CD-ROM multimedia program designed to teach elementary school students about nutrition, using characters such as Bobby Banana and Pamela Pineapple. In addition to its corporate web site, Dole also maintains a nutrition education web site, accessible at http://www.dole5aday.com.

GLOBAL PRESENCE

As of early 1998 Dole distributed its products in 90 countries. It maintained the position of industry leader within the United States, Canada, Mexico, and Japan. However, in the 1990s significant expansion of the company's international operations took place. Key marketing efforts have been targeted at Europe (particularly eastern Europe), South Korea, Thailand, the Philippines, and the Middle East. In 1997 about 40 percent of Dole's sales (after accounting adjustments) were in North America; the remaining sales were divided almost equally among its Latin American, Asian, and European operations. Critics of the company have included labor and consumer groups that take issue with its international operations.

CHRONOLOGY: Key Dates for Dole Food Company, Inc.

1851:: Founded as Castle & Cooke in Hawaii
1899:: James Drummond Dole comes to Hawaii
1903:: James Dole forms the Hawaiian Pineapple Company
1922:: Dole buys the island of Lanai
1961:: Castle & Cooke purchases the rest of the Hawaiian Pineapple Co.
1964:: Purchases Standard Fruit of New Orleans
1989:: Establishes the "Shark Shootout"
1991:: Castle & Cooke changes its name to Dole Food Company Inc.
1994:: Dole acquires part of Jamaica Fruit Distributors, all of Made in Nature, and Dromedary
1995:: Sells juice-producing operations (except pineapple juice) to Seagram Company; sells Made in Nature
1996:: Purchases Pascual Hermanos
1998:: Dole distributes products in 90 countries

Because Dole maintains such a strong international presence, it is often subject to unanticipated changes in the laws, tariffs, and political conditions of the countries in which it does business. For instance, its banana sales in Europe have been significantly disrupted by the European Union's banana regulations, which were challenged by several countries (the United States, Ecuador, Mexico, Honduras, and Guatemala), but were still in effect in 1998. These regulations set up quotas and tariffs for bananas that are imported into Europe. The World Trade Organization issued a report in 1997 in response to complaints from countries outside of the European Union. It agreed that the regulations unfairly favor banana imports into Europe from countries in Africa and the Caribbean that used to be European colonies.

THE PINECONE FRUIT

The Dole Food Company got its start with pineapples, so it's no surprise that it's the top product sold by and closely associated with the company.

Originating in Central and South America, the pineapple got its name from Spanish explorers who called it "pina," which is Spanish for pinecone—the seed they thought the fruit resembled. The English later added "apple" to the word. In 1493, Christopher Columbus found pineapples in Guadeloupe and brought them back to Queen Isabella of Spain. They became popular in Europe and were even grown in seventeenth-century greenhouses.

Although pineapples grow in many tropical areas worldwide, most people associate pineapples with Hawaii, where they have been grown since the early 1800s. It is believed that Captain Cook may have brought the pineapple to Hawaii, or some were washed ashore from Spanish shipwrecks.

The pineapple is a good source of vitamin C and is also used as a symbol of welcome and hospitality in many areas of the world.

SOURCES OF INFORMATION

Bibliography

blamey, pamela. "seagram buys most dole juice units." supermarket news, 19 june 1995.

carlsen, clifford. "dole plucks marin organics giant; acquisition of made in nature plants seed for golden harvest." san francisco business times, 2 september 1994.

"dole food company." hoover's handbook of american business 1997. austin, tx: the reference press, 1996.

dole food company, inc. annual report. westlake village, ca: dole food company, inc., 1997.

"dole to spin off its real estate and resorts division to its shareholders." knight-ridder/tribune business news, 17 october 1995.

dubovoj, sina. "dole food company, inc." international directory of company histories, vol. 9. detroit, mi: st. james press, 1994.

"tropicana + dole = international no. 1." beverage world, june 1995.

For an annual report:

on the internet at: http://www.dole.comor write: office of the corporate secretary, dole food co., inc., 31365 oak crest dr., westlake village, ca 91361

For additional industry research:

investigate companies by their standard industrial classification codes, also known as sics. dole's primary sics are:

0174 citrus fruits

2033 canned fruits & vegetables

2034 dried & dehydrated fruits & vegetables

5149 groceries & related products, nec

Company Profiles for Students

Dole Food Company, Inc.

Dole Food Company, Inc.

Company Origins

The Mainstreaming of Pineapple in the United States: 1910–30

New Products and Continued Growth: 1930–70

Expansion and Sustained Success in the 1970s and 1980s

Company Perspectives:

Innovation in the 1990s

Key Dates:

Principal Subsidiaries

Principal Operating Units

Principal Competitors

Further Reading

Dole Food Company, Inc.

Dole Food Company, Inc.

Principal Subsidiaries

Further Reading

Dole Food Company, Inc.

Dole Food Company, Inc.

Company Origins

The Mainstreaming of Pineapple in the United States: 1910–30

New Products and Continued Growth: 1930–70

Expansion and Sustained Success in the 1970s–80s

Company Perspectives:

Innovation in the 1990s

Key Dates:

Principal Subsidiaries

Principal Operating Units

Principal Competitors

Further Reading

Dole Food Company, Inc.

Dole Food Company, Inc.

Contact Information:

OVERVIEW

COMPANY FINANCES

HISTORY

STRATEGY

INFLUENCES

FAST FACTS: About Dole Food Company, Inc.

CURRENT TRENDS

PRODUCTS

CORPORATE CITIZENSHIP

GLOBAL PRESENCE

CHRONOLOGY: Key Dates for Dole Food Company, Inc.

THE PINECONE FRUIT

SOURCES OF INFORMATION

Bibliography

For an annual report:

For additional industry research:

More From encyclopedia.com

About this article

Dole Food Company Inc

You Might Also Like

NEARBY TERMS