Alico (company)

Alico, Inc. is a holding company which owns Alico Citrus, one of the nation’s largest citrus producers, and Alico Water Resources, a leading water storage and environmental services company. Alico, Inc. also owns major land holdings in Florida.

Alico Inc.
TypePublic
NASDAQ: ALCO
IndustryInvestments, agriculture, environmental services
HeadquartersFort Myers, Florida
Area served
North America
Key people
Ben Fishman – Interim President & Chairman

John Kiernan – Chief Executive Officer

James Sampel – CIO

Richard Rallo – CFO

Danny Sutton – President & GM of Alico Citrus

Chris Moore – VP of Alico Logistics
ProductsCitrus, land, water resources
Websitehttps://alicoinc.com

https://alicowaterresources.com/

http://alicocitrus.co/

History

Alico, Inc., traces its roots back to the 1800s. In 1898, The Atlantic Land and Improvement Company was founded as a subsidiary of the Atlantic Coast Line Railroad and was the holding company for its real estate division.[1] In February 1960, the Atlantic Coast Line Railroad (now part of CSX Transportation) spun-off the Atlantic Land and Improvement Company into The Atlantic Land Development Company, which was then renamed Alico in 1974. Alico is an acronym for Atlantic Land and Improvement Company.

In 1961, Ben Hill Griffin, Jr. was named to the board of directors of Alico, Inc, which then became a publicly traded corporation engaged in citrus fruit, sugarcane and sod production, cattle ranching and forestry.[2] Griffin acquired a majority of the outstanding stock of Alico in 1972, and became chairman of its board of directors in 1973.[3]

Griffin, Jr. passed away in 1990 and was succeeded by his son Ben Hill Griffin III. Griffin III would go on to donate 760 acres of the company's land in South Fort Myers to the state for the construction of Florida Gulf Coast University. The road leading to the university and one of its academic halls are named for Griffin, and its basketball arena is named Alico Arena.[4]

Alico is an agribusiness leader known for its expertise in citrus, conservation, and rural-based commodities.

In 2014, Alico purchased three Florida citrus producers. The move made Alico one of the United States' largest citrus producers. The $363 million deal added 28,000 acres of citrus groves to Alico's portfolio.[5] The company produced over 8.1 million boxes of citrus with profits of $37.8 million in the 2019 Fiscal Year.[6]

Alico sold 5,534 acres of property to the State of Florida under the Florida Forever program in 2019, furthering the state's Devils Garden conservation project. Florida's Secretary of the Department of Environmental Protection noted the land sale would protect water resources and wildlife, including the Florida panther, and that in addition to the land being managed well, it has been preserved by Alico in "as close to a historic state as possible." [7] In May 2020, the State of Florida entered into an option agreement to purchase another 10,684 acres of Alico property for the Florida Forever program. [8] The land sale was praised by numerous environmental organizations for providing important protections for sensitive lands, water, and wildlife habitats for the Florida panther. [9]

The company posted $4.4 million in profits for the first half of the 2020 Fiscal Year and harvested 5.61 million boxes of citrus. Alico also purchased its first grove in five years, acquiring 334 acres in Polk County. The company said "The coronavirus (COVID-19) outbreak has had minimal impact on the company's harvest and business operations."[10]

Alico Citrus

Alico Citrus is a leading American citrus producer, with over 8.1 million boxes of citrus in the 2018-19 season. The company is a wholly owned subsidiary of Alico, Inc. The company owns and manages citrus groves in seven Florida counties - Collier, Charlotte, DeSoto, Hendry, Hardee, Highlands, and Polk Counties and engages in the cultivation of citrus trees to produce citrus for delivery to the fresh and processed citrus markets. Alico Citrus totaled approximately 45,000 gross acres at September 30, 2019.[11]

Alico reported a 68% increase in citrus production for the 2019 Fiscal Year compared to the year prior. The company also planted 400,000 new trees in both FY 2018 and 2019.[12]

Alico Citrus division cultivates citrus trees to produce citrus for delivery to the processed and fresh citrus markets. Its sales to the processed market constitute approximately 97% of the company’s citrus sales annually. Alico Citrus produces Early and Mid-Season varieties, primarily Hamlin oranges, as well as a Valencia variety for the processed market.

Alico Citrus’ sales to the fresh market constitute approximately 3% of its citrus sales annually. The company produces numerous varieties to the fresh fruit market including grapefruit, navel and other fresh varieties. Generally, Alico’s fresh fruit is sold to packing houses by the box, and the packing houses are responsible for the harvest and haul of these boxes.

Alico also engages in complementary activities including contracting for harvesting, hauling and marketing and the purchase and resale of fruit.

Alico Water Resources

Alico Water Resources is a leading environmental services company and wholly owned subsidiary of Alico, Inc. Alico Water Resources has worked to permit a 35,000-acre Hendry County property for a dispersed water storage project, the largest and most cost-effective project of its kind in Florida. With the May 2020 sale of 10,684 acres to the Florida Forever Program, the permitting process for the water project has been suspended.

The water project would store large volumes of excess water from the Caloosahatchee River and prevents local runoff from entering the estuary. The project also rehydrates natural systems that eventually flow south into the Everglades and preserves ranch and farmland from future development and urban sprawl. Taxpayers benefit as Alico Water Resources' project is five times as cost-effective as other public projects and land remains in tax base of the local community.[13]

The project is one of several currently in the permitting process for the Southwest Florida region, but it represents the most substantial share of water storage and treatment of all the proposed projects.

The project has the estimated ability to store and treat 92,000 acre-feet of water annually, or 30 billion gallons.[14]

Community Impact

Alico is deeply ingrained in the Fort Myers community, where it has been a major employer and community partner for decades.

Alico pledged $250,000 to local relief organizations in response to Hurricane Irma in September 2017.

Alico’s impact on the community is wide-reaching, from its philanthropic endeavors to the roads, buildings, and communities that bear its name. Numerous local small businesses also reflect the Alico name.

In 1992, Alico donated 760 acres of land for the construction of Florida Gulf Coast University (FGCU).[15] FGCU’s campus arena opened in 2002 and is called Alico Arena.[16]

References
  1. "History of Alico, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 2019-07-11.
  2. "Alico, Inc. (ALCO)". www.alicoinc.com. Retrieved 2019-07-11.
  3. "History of Alico, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 2019-07-11.
  4. "Florida vs. FGCU: The Griffin family connection". OnlyGators.com. 2013-03-25. Retrieved 2019-07-11.
  5. "Tampa banker Andrew Krusen has a role in juicy Alico deal". www.bizjournals.com. Retrieved 2019-07-11.
  6. Layden, Laura. "Alico's earnings soared in 2019". News-Press.
  7. https://www.naplesnews.com/story/money/business/local/2019/04/02/florida-purchase-5-500-acres-alico-inc-conservation/3341718002/
  8. Gillis, Chad. "Environmental groups praise Gov. DeSantis, Cabinet for voting to buy panther habitat". The News-Press. Retrieved 2020-06-01.
  9. "Florida seeks to buy land from area citrus company for $28.5 million | Business Observer". Business Observer. 2020-05-31. Retrieved 2020-06-01.
  10. https://www.news-press.com/story/money/companies/2020/05/12/spared-fort-myers-based-alico-sees-little-impact-coronavirus-epidemic-citrus-southwest-florida/3112951001/
  11. "Alico Citrus – One of America's Largest Citrus Producers". Retrieved 2019-07-11.
  12. Layden, Laura. "Alico's earnings soared in 2019". News-Press.
  13. "Alico Water Resources". Retrieved 2019-07-11.
  14. "We must stay dedicated to saving our water, environment". The News-Press. Retrieved 2019-07-11.
  15. "About FGCU". www.fgcu.edu. Retrieved 2019-07-11.
  16. "Alico Arena". FGCU Athletics. Retrieved 2019-07-11.
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