Canary Banana Corporation conquers mainland, turnover rises 500%
Spanje: Eurobanan second largest produce company

As we have just ended a year in which Canary banana growers have strongly protested against the implementation of a banana import tariff of € 176, there seems no reason to feel sorry for these growers on subtropical islands (80% of which do not own a plantation larger than 1 hectare or roughly 2,5 acres, but do receive a significant EU subsidy) who, with their shares in Eurobanan, are facing a bright financial position.

Tholen - The group Eurobanan has turned into the second largest produce company in Spain in the ranking of the 200 most important produce companies in Spain. The company realised a turnover of € 285 mln. in 2005. Nine years before, the turnover was still only € 52 mln., which means an increase of 500% between 1994 and 2005.

The company Eurobanan, which is in hands of EurobananCanarias for 85% (in which the Canary banana cooperative Coplaca has a 50% participation) was created by Coplaca in 1993.

According to Leopoldo Cólogan, president of Eurobanan and general director of Coplaca, the Canary banana growers had decided that, with the introduction of the new Common Market Organisation in Europe in 1993, the banana market would be further liberalized, which offered no good perspectives for Canary banana growers. Therefore it was decided to no longer only grow bananas, but also to wholesale them too. For this reason Eurobanan was created.

To turn this adventure into a success a partner was sought. This partner was found in the European multinational of Irish origin, Fyffes, as its support of the highest possible European import tariff for bananas sustained the Canary banana sector.

The cooperation between the two companies resulted in EurobananCanarias, which is equally divided between Coplaca and Fyffes. Because of the fast growth, a new partner on the mainland was soon needed, which was found in the Spanish group Ángel Rey. In this cooperation the group Eurobanan was founded, with an 85% share for EurobananCanarias and 15% for Ángel Rey.

Meanwhile Eurobanan has entered into a multitude of alliances in several Spanish autonomous communities, with 50% shares in the companies Frutas Iru in Bilbao; Fruites D´or in Palma de Mallorca and Morales e Hijos in Barcelona. Eurobanan handles imports, ripening and sales of the Canary bananas and other sorts of produce and now has offices in Vigo, Bilbao, Madrid, Barcelona, Alicante, Sevilla, Jerez, Murcia, Palma de Mallorca and the Canary Islands.

These expansions were made possible by the policy of Coplaca and Fyffes to reinvest all profits in the realisation of new ripening installations and sales points, which ultimately have made the Canary banana growers quite defensible in face of the new European banana import regime.

The members of the Group invested € 18 mln. in the development of the group, which has financially developed strongly and is ready to face the future.

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Publication date: 09 Jan 2006
Author: Andre van der Wiel
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