More than 400 shareholders and employees turned Chiquita Brands International Inc.'s annual meeting Wednesday into a testimonial to the Lindner family and the Cincinnati-based banana company.
The outpouring of support, which included a standing ovation for Chiquita Chairman and Chief Executive Officer Carl H. Lindner Jr., followed a May 3 investigation of the company by the Enquirer. That report revealed questionable overseas business practices including bribery, hidden control of farms, environmental problems and political influence.
"We reject the outrageous allegations reported by the Enquirer," Chiquita President and Chief Operating Officer Steven G. Warshaw told shareholders and employees at the meeting at the Omni Netherland hotel downtown.
"You cannot imagine the moral outrage of Chiquita associates in this room and around the world," he added.
Enquirer Editor Lawrence K. Beaupre declined to comment on any specific criticism Wednesday, except to say: "The Enquirer's stories were highly detailed and fully documented."
Mr. Warshaw wrapped up the regular business portion of the meeting in less than 15 minutes. He then took a few moments to say Chiquita expects improved profits in its core banana business this year.
But the bulk of his remarks - 20 minutes of the 55-minute meeting - were spent denouncing the Enquirer's reporting as "tabloid journalism" and "atrocious misrepresentations."
Though Mr. Warshaw adamantly defended Chiquita's business practices, he did say he "couldn't guarantee" the honesty of each of the company's "40,000 associates in 50 countries." He added that Chiquita disciplines employees who disobey company policies.
Mr. Warshaw also attacked the newspaper for publishing the contents of internal Chiquita voice-mail messages. A high-level source within Chiquita provided the Enquirer with tape recordings of more than 2,000 voice-mail messages. Mr. Warshaw said the tapes were "stolen." The Enquirer has reported that its source also has turned copies of the tapes over to U.S. Securities and Exchange Commission (SEC) investigators. In April, the SEC launched an investigation into the company's business practices and issued multiple subpoenas for internal Chiquita records.
Mr. Warshaw did not mention the SEC investigation during his speech. However, talking to reporters after the meeting, he said the company is cooperating with the investigation.
At the conclusion of his remarks, Mr. Warshaw opened the floor to questions from shareholders.
A half-dozen shareholders or friends of the company spoke. Only two asked questions. The others lambasted the Enquirer and praised Chiquita for its contribution to Cincinnati's economy and the Lindner family's charitable donations.
Mr. Warshaw was the only company executive who discussed official business at the meeting. Mr. Lindner thanked the audience for the standing ovation. Keith Lindner, the elder Lindner's son and vice chairman of Chiquita, briefly offered his appreciation for the shareholders' support.
Meanwhile, on the sidewalk outside the Omni, more than 30 protesters demonstrated against Chiquita. Several badgered Mr. Lindner as he pulled up to the hotel in his white Bentley.
"Hey, Carl, stop killing the workers," one of the protesters gathered along Race Street shouted at the 79-year-old businessman. Mr. Lindner ignored the man and questions from local media as he walked into the hotel.
The group was hoping to send a message to shareholders, said Scott Campbell, a North Avondale resident.
"They call themselves good corporate citizens, and they've certainly done a lot for Cincinnati," he said. "But being a good corporate citizen involves more than that."
A second group of protesters arrived while the meeting was in progress to demand the Enquirer take a hard look at its practices. Unlike the anti-Chiquita crowd, which was mostly dressed in jeans and carried homemade signs, those supporting the banana company came dressed in business suits or white shirts and dark slacks. The signs they carried had been printed by a computer and all carried the same message:
"Enquirer ought to investigate their own unethical business and union practices."
Among the findings of the Enquirer's May 3 report:
(Copyright 1998)
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