Alico, Inc. Announces New Supply Contract with Tropicana

Core Viewpoint - Alico, Inc. has entered into a new supply agreement with Tropicana Brands Group, effective from June 5, 2024, to July 31, 2027, which will significantly increase the pricing for citrus fruit supplied to Tropicana compared to previous agreements [1][2]. Group 1: Agreement Details - The new supply agreement covers approximately 65% of Alico's currently planted acres, succeeding existing agreements that expire at the end of July 2024 [1]. - The prices per pound solids for the citrus fruit sold to Tropicana under the new contract are projected to be approximately 33% to 50% higher than the average price from the previous season [1]. Group 2: Company Background - Alico, Inc. primarily operates two divisions: Alico Citrus, one of the largest citrus producers in the U.S., and Land Management and Other Operations, which includes land leasing and related support operations [3]. Group 3: Management Commentary - John Kiernan, Alico's President and CEO, expressed satisfaction with the extended relationship with Tropicana, emphasizing a commitment to addressing challenges in the Florida citrus industry with a long-term focus [2]. - The new supply agreement, along with the existing contract, ensures more stable pricing for the majority of Alico's citrus fruit over the upcoming seasons [2].