DiGiorgio Corporation
Encyclopedia
DiGiorgio corporation was a fruit-growing corporation
and eventual conglomerate
in the 20th century. Once a vast company, owning much of California's central valley farm land, and multi-billion dollar corporation, a massive restructuring in the 1990s limited its breadth. DiGiorgio now distributes food products under its White Rose
brand name to New York
, New Jersey
and Connecticut
.
in 1888, becoming a middleman for fruit sales. He founded the Baltimore Fruit Exchange in 1904 on borrowed money and in 1911 was able to purchase the Earl Fruit Company, a California
shipper. In 1919, he was able to purchase 5845 square miles (15,138.5 km²) of land outside Arvin in California's San Joaquin Valley
. A year later, DiGiorgio founded DiGiorgio Fruit Co. His success came when he obtained water for the arid
California land by drilling wells hundreds of feet deep. By 1929, just ten years after his original land purchase, DiGiorgio's company was the largest fruit-packing plant in the nation.
in 1933 saw DiGiorgio venture into the winery business, forming Del Vista Wine Co. By 1946, the company occupied 33 square miles (85.5 km²) of the San Joaquin Valley as well as land as far north as Marysville
and south to the Mexican
border. It was the largest grape, plum and pear grower in the world. Its revenue rose from $5.7 million in 1938 to $18.2 million in 1946, with DiGiorgio and his family owning 59% of the stock.
Ernesto Galarza
also targeted DiGiorgio Co., organizing a strike from 1947–50 and a boycott of the company's products. The strike lasted 30 months. Even though DiGiorgio's workers were amongst the most satisfied with their jobs amongst any farming corporations at the time, DiGiorgio Co. signed a contract with the United Farm Workers
in 1966, ensuring fair wages.
, TreeSweet
, White Rose, Serv-A-Portion (distributor of condiment packets for fast food), Los Angeles Drugs, Peter Carando Inc (Italian-style meats), Sun Aire Airlines and Las Plumas Lumber Co. DiGiorgio also became invested in land development across California. Investments and directorships gave the company close ties to Bank of America
(then Bank of Italy), Pacific Gas & Electric and Southern California Edison
.
In 1965, assets had reached $82.9 million and sales had passed $100 million. DiGiorgio Co. ranked 9th in rate of sales growth in the nation at that time. Its products and services ranged from grocery distribution, fruit juices, campers, lumber, housing components, pharmaceuticals, wine and, of course, fruit. Exports were mainly to Europe
and Japan
.
Restructuring began in 1984. Sun Aire was sold to SkyWest Airlines
. TreeSweet, Allied Distributing Co., Los Angeles Drug Co. and much of the real estate outside of Borrego Springs was sold as well.
The late '80s saw hostile takeover attempts by the Gabelli Group Inc. In 1988, management enacted a $70 million, $21-a-share buyback offer. However, in doing so, it left DiGiorgio only two lines of business: food processing/distribution and building materials. Trial lawyer and New Jersey native Arther Goldberg attempted to gain control of the remains, interested in speculative profits. By 1990 he had taken control of the company, moving the headquarters from San Francisco to Somerset, New Jersey
. All but White Rose division were eventually sold off by 1994.
a town in the San Joaquin Valley still bears the name of the once vast farming empire. The DiGiorgio family stayed connected with its homeland, donating large amounts of money to Cefalu, Sicily. In the small, oceanside town, one can find both a "DiGiorgio Technical Institute" and "Plaza DiGiorgio."
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
and eventual conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
in the 20th century. Once a vast company, owning much of California's central valley farm land, and multi-billion dollar corporation, a massive restructuring in the 1990s limited its breadth. DiGiorgio now distributes food products under its White Rose
White Rose (Food Product)
The White Rose Food Division of DiGiorgio Corporation is the largest independent food wholesaler and distributor in the New York City metropolitan area. It is mainly distributed at Met Foods and Key Food and has a large presence in the supermarket Western Beef. White Rose food can also be found...
brand name to New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
and Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
.
Founding
Joseph DiGiorgio (born Giuseppe DiGiorgio, 1874 in Cefalu, Sicily) immigrated to the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1888, becoming a middleman for fruit sales. He founded the Baltimore Fruit Exchange in 1904 on borrowed money and in 1911 was able to purchase the Earl Fruit Company, a California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
shipper. In 1919, he was able to purchase 5845 square miles (15,138.5 km²) of land outside Arvin in California's San Joaquin Valley
San Joaquin Valley
The San Joaquin Valley is the area of the Central Valley of California that lies south of the Sacramento – San Joaquin River Delta in Stockton...
. A year later, DiGiorgio founded DiGiorgio Fruit Co. His success came when he obtained water for the arid
Arid
A region is said to be arid when it is characterized by a severe lack of available water, to the extent of hindering or even preventing the growth and development of plant and animal life...
California land by drilling wells hundreds of feet deep. By 1929, just ten years after his original land purchase, DiGiorgio's company was the largest fruit-packing plant in the nation.
Growth
The end of ProhibitionProhibition
Prohibition of alcohol, often referred to simply as prohibition, is the practice of prohibiting the manufacture, transportation, import, export, sale, and consumption of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the...
in 1933 saw DiGiorgio venture into the winery business, forming Del Vista Wine Co. By 1946, the company occupied 33 square miles (85.5 km²) of the San Joaquin Valley as well as land as far north as Marysville
Marysville, California
Marysville is the county seat of Yuba County, California, United States. The population was 12,072 at the 2010 census, down from 12,268 at the 2000 census. It is included in the Yuba City Metropolitan Statistical Area, often referred to as the Yuba-Sutter Area after the two counties, Yuba and...
and south to the Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
border. It was the largest grape, plum and pear grower in the world. Its revenue rose from $5.7 million in 1938 to $18.2 million in 1946, with DiGiorgio and his family owning 59% of the stock.
Early setbacks
The shrinking water table eventually forced DiGiorgio Co. to request federal irrigation water. However, it was disqualified by the US Bureau of Reclamation, which restricted its services to owners of less than 160 acre (0.6474976 km²).Ernesto Galarza
Ernesto Galarza
Ernesto Galarza was a Mexican-American labor activist, professor, poet and writer, a key figure in the history of immigrant farm worker organization in California.- Early career :...
also targeted DiGiorgio Co., organizing a strike from 1947–50 and a boycott of the company's products. The strike lasted 30 months. Even though DiGiorgio's workers were amongst the most satisfied with their jobs amongst any farming corporations at the time, DiGiorgio Co. signed a contract with the United Farm Workers
United Farm Workers
The United Farm Workers of America is a labor union created from the merging of two groups, the Agricultural Workers Organizing Committee led by Filipino organizer Larry Itliong, and the National Farm Workers Association led by César Chávez...
in 1966, ensuring fair wages.
Change in Leadership & Diversification
Joseph DiGiorgio died in 1951 and his nephew, Robert DiGiorgio rose to leadership, becoming president in 1962. By 1967, the agricultural portion of the business accounted for less than 2% of revenue and "Fruit" was dropped from the company's name. Its acquisitions included S&W Fine FoodsDel Monte Foods
Del Monte Foods is an American food production and distribution company headquartered in San Francisco, California. Del Monte Foods is one of the country's largest producers, distributors and marketers of branded food and pet products for the U.S. retail market, generating approximately $3.6...
, TreeSweet
Seneca Foods
Seneca Foods Corporation is a leading low-cost food processor and distributor headquartered in Marion, New York, USA. The company primarily produces canned, frozen, and bottled produce under private label as well as national and regional brands that the company owns or licenses, including Seneca,...
, White Rose, Serv-A-Portion (distributor of condiment packets for fast food), Los Angeles Drugs, Peter Carando Inc (Italian-style meats), Sun Aire Airlines and Las Plumas Lumber Co. DiGiorgio also became invested in land development across California. Investments and directorships gave the company close ties to Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
(then Bank of Italy), Pacific Gas & Electric and Southern California Edison
Southern California Edison
Southern California Edison , the largest subsidiary of Edison International , is the primary electricity supply company for much of Southern California, USA. It provides 14 million people with electricity...
.
In 1965, assets had reached $82.9 million and sales had passed $100 million. DiGiorgio Co. ranked 9th in rate of sales growth in the nation at that time. Its products and services ranged from grocery distribution, fruit juices, campers, lumber, housing components, pharmaceuticals, wine and, of course, fruit. Exports were mainly to Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
.
Decline
By the late '7's, DiGiorgio's sales reached $1 billion. However, net earnings were down due to large amounts of debt. The company was seen to lack focus. Peripheral companies were sold off and many of the shareholders were uneasy about the companies future as Robert DiGiorgio grew old, eventually stepping down as chairperson in 1982 and turning the company over to Peter Scott.Restructuring began in 1984. Sun Aire was sold to SkyWest Airlines
Skywest Airlines
Skywest Airlines Pty Ltd is a regional airline company based in Perth, Western Australia, Australia; servicing key towns in the state of Western Australia, Darwin, Northern Territory and Melbourne, Victoria; as well as charter flights to Bali, Indonesia....
. TreeSweet, Allied Distributing Co., Los Angeles Drug Co. and much of the real estate outside of Borrego Springs was sold as well.
The late '80s saw hostile takeover attempts by the Gabelli Group Inc. In 1988, management enacted a $70 million, $21-a-share buyback offer. However, in doing so, it left DiGiorgio only two lines of business: food processing/distribution and building materials. Trial lawyer and New Jersey native Arther Goldberg attempted to gain control of the remains, interested in speculative profits. By 1990 he had taken control of the company, moving the headquarters from San Francisco to Somerset, New Jersey
Somerset, New Jersey
Somerset is a census-designated place and unincorporated area located at the easternmost section within Franklin Township, in Somerset County, New Jersey. At the 2000 United States Census, the CDP population was 23,040...
. All but White Rose division were eventually sold off by 1994.
Legacy
While the White Rose Company still exists, no other companies carry the DiGiorgio label. However, DiGiorgioDi Giorgio, California
Di Giorgio is an unincorporated community in Kern County, California. It is located south of Edison, at an elevation of 486 feet .The first post office at Di Giorgio opened in 1944. The name honors Joseph Di Giorgio, agricultural entrepreneur and founder of DiGiorgio Corporation...
a town in the San Joaquin Valley still bears the name of the once vast farming empire. The DiGiorgio family stayed connected with its homeland, donating large amounts of money to Cefalu, Sicily. In the small, oceanside town, one can find both a "DiGiorgio Technical Institute" and "Plaza DiGiorgio."