Triple Point Lands Chiquita for Hedge Accounting by P. Reames
Triple Point Technology announced yesterday that they have licensed their Commodity XL(TM) for Hedge Accounting, Fair Value Disclosure and FAS 161 to Chiquita Brands International Inc. As noted in the press release, “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”.
The press release provides some interesting discussion of Chiquita’s bunker fuel usage and market exposure that would result if they did not hedge (and also the necessity of proper hedge accounting to fully realize the benefits of those activities), including a note that Chiquita’s ship fleet burn more than 300,000 metric tons of bunker fuel every year (I know there is a banana boat joke somewhere in there!).
Triple Point also notes several new non-energy clients that they have signed recently (including a couple that have not been previously announced) covering the consumer products, agricultural and manufacturing industries. These new clients include Unilever, The Campbell Soup Company, Gavilon (formerly ConAgra Trade Group) and Incitec Pivot Ltd. Based on those results, it would be hard for anyone to argue that Triple Point is not leading the market in non-energy commodity license sales.
