1. Dole Food Company, Inc.
Annual Report 1998
Dole Food Company Inc. Annual Report 1998
,

2. DOLE WORLDWIDE OPERATIONS
Q
Sourcing
Ripening/Distribution
Markets
Q Corporate
FOOD OPERATING DIVISIONS AND LOCATIONS
EUROPE AND AFRICA • Belgium • Cameroon • Canary Islands • France • Germany • Ghana • Greece • Italy
Ivory Coast • Kenya • Namibia • Netherlands • South Africa • Spain • Tunisia • Turkey • United Kingdom • Zimbabwe
LATIN AMERICA AND CARIBBEAN • Argentina • Brazil • Chile • Colombia • Costa Rica • Ecuador
Guadeloupe • Guatemala • Honduras • Jamaica • Martinique • Mexico • Nicaragua • Peru • Venezuela • Windward Islands
ASIA • Australia • China • Japan • New Zealand • Philippines • Thailand
NORTH AMERICA • Canada • United States: Arizona, California, Florida, Hawaii, Ohio, Washington
FOOD MARKETING DIVISIONS AND LOCATIONS
EUROPE AND MIDDLE EAST • Albania • Algeria • Austria • Azerbaijan • Bahrain • Belarus • Belgium
Bosnia • Bulgaria • Croatia • Czech Republic • Denmark • Estonia • Egypt • Finland • France • Georgia • Germany
Greece • Hungary • Iceland • India • Ireland • Israel • Italy • Jordan • Kazakhstan • Kuwait • Latvia • Lebanon • Lithuania
Luxembourg • Malta • Morocco • Netherlands • Norway • Oman • Poland • Portugal • Qatar • Romania • Russia
Saudia Arabia • Senegal • Slovakia • Spain • Sweden • Switzerland • Syria • Tajikistan • Tunisia • Turkey • Ukraine
United Arab Emirates • United Kingdom • Uzbekistan • LATIN AMERICA AND CARIBBEAN • Argentina • Bahamas • Barbados
Bermuda • Bolivia • Brazil • Chile • Colombia • Costa Rica • Dominican Republic • Ecuador • Guadeloupe • Guatemala
Honduras • Jamaica • Martinique • Mexico • Netherlands-Antilles • Peru • Puerto Rico • Trinidad & Tobago
Uruguay • Venezuela • ASIA • Australia • China • Cambodia • Hong Kong • Indonesia • Japan • Malaysia
New Zealand • Philippines • Singapore • South Korea • Taiwan • Thailand
NORTH AMERICA • Canada • United States
2 D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

3. Financial Highlights
Dole Financial Highlights
1998 1997 1996 1995 1994
(in millions, except per share data)
Revenue $ 4,336 $ 3,840 $ 3,804 $ 3,499
$ 4,424
Income from continuing operations $ 160 $ 89 $ 120 $ 58
$ 12
Income (loss) from discontinued operations – – (97) 10
–
Net income $ 160 $ 89 $ 23 $ 68
$ 12
Diluted net income (loss) per common share
Continuing operations $ 2.65 $ 1.47 $ 2.00 $ 0.98
$ 0.20
Discontinued operations – – (1.61) 0.16
–
Net income $ 2.65 $ 1.47 $ 0.39 $ 1.14
$ 0.20
Diluted average common shares outstanding 60 60 60 60
60
Total assets $ 2,464 $ 2,487 $ 2,442 $ 3,685
$ 2,915
Capitalization
Short-term debt $ 14 $ 22 $ 24 $ 54
$ 36
Long-term debt 755 904 896 1,555
1,116
Minority interests 38 30 26 25
57
Common shareholders’ equity 666 550 508 1,081
622
Total $ 1,473 $ 1,506 $ 1,454 $ 2,715
$ 1,831
Book value per common share $ 11.10 $ 9.18 $ 8.49 $ 18.17
$ 10.49
45 3/4
Common stock price at year-end $ $ 34 $ 35 $ 23
$ 30
Market price range
49 5/8 431/2 351/2
57 1/8
High $ $ $ 38 $
$
33 3/8 32 7/8 221/2
285/16
Low $ $ $ 24 $
$
Annual cash dividends per common share $ 0.40 $ 0.40 $ 0.40 $ 0.40
$ 0.40
Note: Income from continuing operations for 1998 and 1996 includes pre-tax charges of $120 million and $50 million, respectively. Income from continuing operations for
1995 includes a pre-tax gain of $62 million related to assets sold or held for sale. The real estate and resorts business distributed to shareholders in 1995 has been presented
throughout this report as discontinued operations.
GROWTH CASH FLOW CAPITALIZATION RETURN
26.3%
4,424
4,336
1,081
24.6%
372
3,840
3,804
338
328
3,499
308
17.5%
265
16.0%
666
622
550
508
6.4%
94 96 98
97
95
94
94 96 98
97
95
96 98
97
95 94 98
96 97
95
Revenue Shareholder Equity Return on Equity**
EBITDA*
(in millions)
(in millions) (in millions) (in percent)
Depreciation & Amortization EBIT
* Before special charges in 1998 and 1996 and net gain on asset dispositions in 1995.
1
** Before special charges in 1998 and 1996 and asset impairment in 1995. D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

4. To Our Shareholders
1998 was a difficult and challeng- bananas, 10,000 acres of sugar cane, 2,000 acres of
ing year for Dole Food Company. African palm, as well as roads, bridges, employee hous-
We entered the year coping with ing, packing plants, irrigation systems, river dikes, ware-
the Asian economic crisis, which houses, trucks, trailers, and other equipment, all of
slowed growth in one of our most which were virtually destroyed. Fortunately, due to ini-
dynamic markets. The El Niño tial preparations and a rapid response to the crisis, no
weather phenomenon adversely employee lives were lost. I would like to personally
affected the agricultural produc- acknowledge and thank the thousands of employees,
David H. Murdock
tion in virtually every area in friends and associates from around the world that
Chairman and
Chief Executive Officer
which Dole operates. Late in the responded immediately to the relief and rehabilitation
year, the collapse of the Russian effort. The heroic efforts of so many are too great to list,
economy in essence destroyed an important market for but their actions and deeds will always be gratefully
Dole products. During the last week of October, Hurri- remembered by all of us at Dole and the entire populace
cane Mitch, perhaps the worst hurricane of the century, we serve in these areas.
made a direct hit on the country of Honduras and Dole
operations in that country, leaving destruction in its OPERATIONS
wake. Finally, in late December, the California citrus Dole’s worldwide operations were severely tested in
industry suffered a devastating freeze, which essentially 1998 by the weather disruptions in all of its growing areas.
destroyed most of the orange crop in the state. While it The El Niño weather pattern caused severe flooding
is saddening to recall such a litany of difficulties, it is in Ecuador, extremely heavy rains in California, and
gratifying to remember the response of the Dole team drought in Thailand and the Philippines. The year
throughout the world to each adversity. ended with Hurricane Mitch in Honduras and the freeze
in California. In turn, these weather anomalies caused
production shortages and logistical disruptions through-
FINANCIAL RESULTS
In the 4th Quarter of 1998, Dole took two special out the year in our banana, pineapple, vegetable and cit-
charges. The first charge of $100 million reflected the rus businesses. Despite these issues, most of our core
$160 million in damages caused by Hurricane Mitch. The businesses performed well and are indeed well posi-
second charge of $20 million was primarily due to the tioned for a more normal 1999.
damage caused by a major freeze to the California citrus The financial crisis in Russia, which began in
crop just prior to harvest. After these charges, Dole’s net September 1998, had a significant negative effect on
income was $12.1 million in 1998 on revenues of $4.4 bil- demand for bananas in that country. In recent years, the
lion. Before the special charges, operating earnings totaled Russian market had grown to consume approximately
$206.2 million and EBITDA totaled $328.3 million. eight percent of the world banana supply, so the loss of
this market will be an ongoing concern for the banana
industry in general.
HURRICANE MITCH
Hurricane Mitch, one of the strongest hurricanes
in recorded history, with sustained winds up to 180 MANAGEMENT CHANGES/ENVIRONMENTAL
mph, had a devastating effect on the country of In May 1998, Sharon Hayes joined Dole as its new
Honduras, as well as caused severe damage to Director of Environmental Affairs. Having spent over
Nicaragua and Guatemala. Dole has a 100-year history thirteen years with the Environmental Protection
of investments in Honduras, which were severely dam- Agency, including working for the Agency’s administra-
aged or destroyed by winds and floods. Operations tor on pesticide and toxic chemical issues, Ms. Hayes’
affected included growing crops of over 20,000 acres of background and expertise are assets for Dole.
2 D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

5. Dole Food Company Board of Directors
(Seated): David H. Murdock (Standing, left to right): David A. DeLorenzo,
James F. Gary, Richard M. Ferry, Elaine L. Chao, Mike Curb, Zoltan Merszei
Dole strives to lead in environmental protection and growing business. First year revenues from these
over the last decade has reduced its reliance on tradi- acquisitions are expected to exceed $200 million. The
tional crop protection products by integrating cultural flower business offers many parallels to existing
and biological controls into its pest management strate- core businesses. For example, flowers are perishable,
gies. Dole standards of environmental excellence in its imported, and industry growth comes through the
worldwide operations intend to meet standards held in same supermarket channel of distribution as other Dole
the United States and European Union. products. We are very pleased with the acquisitions of
Sunburst Farms, Four Farmers, Finesse, CCI and their
affiliated companies. The combination of these premier
ACQUISITIONS
Flowers In 1998, Dole made a strategic move into companies, their assets and employees into the Dole
the fresh-cut flower industry with the acquisition of Flower Division, is an exciting first step in building a
several of the largest companies in the floral and flower global flower network.
3
D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

6. SABA Trading AB During 1998, Dole also purchased the Company is positioning the unit to be a leading
sixty percent of SABA Trading AB, the leading importer deciduous fruit exporter as well. Dole South Africa ser-
and distributor of fresh fruit, vegetables, and flowers in vices the winter fruit market needs of Dole’s global dis-
Sweden. Dole purchased its position from Axel Johnson tribution system, complementing the leading export
AB and the Swedish Cooperative Society, each of which position it already maintains in Chile.
will remain as minority shareholders. Annual sales total These strategic moves, combined with the 1998
approximately $500 million, with 950 employees. SABA acquisitions and a return to normality of our base busi-
adds another strong company to Dole’s distribution sys- nesses, gives us every reason to be optimistic for a year
tem, which continues to grow throughout the world. of profitability in 1999.
Dole’s new headquarters facility in Westlake Village,
a suburb of Los Angeles, will be completed in the latter
FINANCING ACTIVITIES
Dole strengthened its financial infrastructure in 1998 part of 1999. We are looking forward to combining our
with a highly successful $300 million public bond issue. current offices into one building. The efficiency of prox-
Additionally, the five-year revolving $400 million credit imity for management and staff will materially enhance
facility continues to provide strong operational flexibili- operations and eliminate duplication of efforts.
ty. Agents in the facility are Chase Manhattan Bank, Throughout the 14 years that I have been chief exec-
Bank of America and Citibank. utive officer of Dole, we have consistently built upon and,
I believe, attained the strongest management team in
Dole’s history. Throughout the world we have excellent
OUTLOOK
In a year filled with adversity, Dole continued to senior management as well as creative, well-trained and
demonstrate the strength of its worldwide sourcing and dedicated day-to-day managers and employees. Through
distribution network. The Dole® brand and quality con- the combined efforts of our workforce, Dole’s fresh fruit,
tinued to flourish on supermarket and foodservice vegetable and flower products are grown with respect
shelves around the globe. In addition to its acquisitions, for the environment and with a genuine interest in the
Dole took a number of steps to ensure continued, accel- health and welfare of our people and the consumer.
erated growth of the Dole® brand. We begin 1999 with renewed spirit and commitment
In the United States, our value-added salads had to rebuild and rehabilitate, and to accelerate our growth
another spectacular year of growth. In Springfield, Ohio, and profitability. We would like to express our apprecia-
Dole opened its first processing plant to meet the tion and gratitude to our employees, shareholders and
demands for these safe, convenient, ready to eat salads customers for their continued support and confidence.
in the Midwestern and Eastern states. New salad prod- Once again, we offer our support and sympathy to the
ucts, ready for introduction in early 1999, should con- many thousands of people in Honduras, Nicaragua,
tinue to spur demand for Dole salads into the year 2000. Guatemala, and Ecuador where lives were lost and
Dole also built and opened its first salad plant in economies affected by this year’s weather disruptions.
Japan in 1998, and gained excellent distribution on its
first product introduction. Fresh-cut salads are a natural Sincerely,
extension to Dole’s powerful perishable distribution
network in Japan, and are expected to be a significant
growth vehicle in that market.
Dole also established itself firmly in South Africa in
1998, following that country’s deregulation of its fresh
fruit industry. In South Africa, Dole was the second David H. Murdock
largest citrus exporter in its first year of operation, and Chairman and Chief Executive Officer
4 D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

7. Dole Food Products Worldwide
Dole Fresh Fruit Dole Fresh
Dole Pineapple Strawberry
Dole Fruit Bowls – Diced Peaches
Dole Pitted Prunes in
Flowers
Dole Apples Juice Drink
Dole Fruit Bowls – Mixed Fruit
Reclosable Bags
Agapanthus
Dole Apricots Dole Pineapple Tidbits for Pizza
Dole Fruit Bowls – Pineapple
Dole Seedless Raisins Canister
Alstroemeria
Dole Bananas Dole Pineapple Tidbits in Juice
Tidbits
Dole Seedless Raisins Carton
Aster Butterfly
Dole Blueberries or Syrup
Dole Fruit Bowls – Tropical Fruit
Dole Seedless Raisins in
Aster Mini Rainbow
Dole Cantaloupe Dole Pine Orange Banana Juice
in Blended Juice
Reclosable Bags
Aster Montecasino
Dole Cherries Dole Rambutan in Syrup
Dole Fruit Festival Snack Cup
Dole Seedless Raisins Mini Snacks
Bells of Ireland
Dole Clementines Dole Rambutan Snack Cup
Dole Fruit Mix, Easy Open
Dole Seedless Raisins Six Packs
Bouvardia
Dole Coconuts Dole Red Papaya Chunks in
Dole Guava in Syrup
Dole Sliced Natural Almonds
Byplurem
Dole Cranberries Light Syrup
Dole Guava Halves
in Reclosable Bags
Calla Lillies
Dole Grapefruit Dole Tropical Fruit Cocktail in
Dole Ketchup (Regular and
Dole Whole Natural Almonds
Carnations
Dole Grapes Juice and Syrup
Hot Spice)
in Reclosable Bags
Chinese Carnations
Dole Honeydew Melon Dole Tropical Fruit Cocktail in
Dole Longans in Syrup
Saman Delphinium
Dole Kiddie Pack (bananas) Syrup with Passion Fruit Juice
Dole Mandarin Orange Fruit Cups
Dole Soelia Pistachios Eremurus
Dole Kiwi Dole Tropical Fruit Juice Box
Dole Mandarin Orange Segments
Guyennoise Prunor Pitted Prunes Farm Bouquets
Dole Lemons Dole Tropical Fruit Salad,
Dole Mandarin Orange Segments,
Guyennoise Prunor Whole Prunes Freesia
Dole Lychees Easy Open
Easy Open
JA Whole Dates Gerbera
Dole Mangos Dole Yellow Papaya Chunks
Dole Mango Cubes Snack Cup
JA Whole Prunes Gerspider
Dole Morado Banana in Syrup
Dole Mango Juice Drink
Soelia Blanched Whole Almonds Gipsy
Dole Native Banana Dole White Asparagus
Dole Mango Slices in Blended
Soelia Dried Apricots Godetia
Dole Nectarines Seasons Pineapple Juice
Juice or Syrup
Soelia Dried Figs Gypsophilia
Dole Oranges Seasons Tropical Fruit Mix
Dole Mushroom
Soelia Pitted Prunes Kangaroo Paws
Dole Papayas Dole Nata de Coco in Syrup
Dole Fresh-Cut
Soelia Sliced Thin Almonds Leatherleaf
Dole Peaches Dole Papaya in Syrup
Vegetables
Soelia Whole Peanuts Liatris
Dole Pears Dole Peach Halves in Syrup
Dole American Special Blend Salad
Soelia Whole Prunes Lillies
Dole Persimmons Dole Peach Snack Cup
Dole Caesar Lunch For One™
Whole Deglet Nour Dates Limonium
Dole Fresh-Cut Pineapple Dole Peaches in Juice and Syrup
Dole Chopped Romaine Salad Lisianthus
Dole Pineapple Dole Sliced Peaches, Easy Open
Dole Fresh Vegetables Dole Classic Cole Slaw Mini Carnations
Dole Plantains Dole Pear Snack Cup
Dole Artichokes Dole Classic Iceberg Salad Monk’s Hood
Dole Plums Dole Pears in Juice and Syrup
Dole Asparagus Dole Classic Romaine Salad Mums
Dole Pomegranates Dole Pineapple Chunks in Juice
Dole Bell Peppers Dole Complete Caesar Salad Orchidiola
Dole Raspberries or Syrup
Dole Broccoli Dole Complete Caesar Salad Pompons
Dole Satsumas Dole Pineapple Concentrate
Dole Brussels Sprouts with Fat Free Dressing Queen Anne’s Lace
Dole Strawberries Dole Pineapple Cubes in Syrup
Dole Butter Lettuce Dole Complete Creamy Garlic Roses (Hybrid Tea)
Dole Super Sweet Pine Dole Pineapple Fun Shapes –
Dole Carrots Caesar Salad Rover Mums
Dole Sweet Banana Cosmic
Dole Cauliflower Dole Complete Oriental Salad Snapdragons
Dole Tangelos Dole Pineapple Fun Shapes –
Dole Celery Dole Complete Roasted Garlic Solidago
Dole Tangerines Sea Creatures
Dole Green Leaf Lettuce Caesar Salad with Fat Free Dressing Solidaster
Dole Yucca Dole Pineapple Grapefruit Juice
Dole Green Onions Dole Complete Romano Salad Spider Mums
Dole Pineapple Grapefruit
Dole Iceberg Lettuce Dole Complete Sunflower
Dole Dried Fruit Spray Roses
Juice Drink
& Nuts Dole Idaho Potatoes Ranch Salad Star of Bethlehem
Dole Pineapple Juice
Dole Blanched Slivered Dole Radishes Dole Complete Zesty Italian Statice
Dole Pineapple Juice Drink
Almonds in Recloseable Bags Dole Red Leaf Lettuce Salad with Fat Free Dressing Stock
Dole Pineapple Lychee Juice Drink
Dole Blanched Whole Almonds Dole Romaine Lettuce Dole European Special Blend Salad Strawflower
Dole Pineapple Orange Juice
in Reclosable Bags Dole Sugar Peas Dole French Special Blend Salad Sunflowers
Dole Pineapple Orange Juice Box
Dole Chopped Dates in Dole Taro Dole Greener Selection™ Salad Sweetheart Roses
Dole Pineapple Orange Juice Drink
Reclosable Bags Dole Italian Special Blend Salad Treefern
Dole Pineapple Orange Raspberry
Dole Packaged Foods
Dole Chopped Natural Dole Mediterranean Special Waxflower
Juice Box
Dole Aloe Vera (Solid)
Almonds in Reclosable Bags Blend Salad Yarrow
Dole Pineapple Pink Grapefruit
Dole Apricot Halves
Dole CinnaRaisins in Dole Peeled-Mini Carrots
Drink
Dole Apricot Snack Cup
Reclosable Bags Dole Ranch Lunch For One™
Dole Pineapple Slices in Juice
Dole Apricots in Juice or Syrup
Dole Golden Seedless Raisins Dole Romaine Special Blend Salad
or Syrup
Dole Crushed Pineapple in
Dole Pitted Dates in Dole Shredded Carrots
Dole Pineapple Snack Cup
Juice or Syrup
Reclosable Bags Dole Shredded Lettuce
Dole Pineapple Snack Wedges,
Dole Deciduous Fruit Cocktail
Dole Pitted Prunes Canister Dole Shredded Red Cabbage
Easy Open
in Juice and Syrup
Dole Pitted Prunes Carton Dole Spring Mix Special Blend Salad
Dole Fruit Bowls – Cherry Dole Tuscany Special Blend Salad
Flavored Mixed Fruit Dole Verona Special Blend Salad
5
D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

8. Operational Review
Dole Food Company is the largest This is true of all of our regions and thus creates an
producer of fresh fruits, vegetables international web of Dole trade, tied together by Dole’s
and flowers in the world. Dole shipping services and its experienced management
employs over 53,500 people who group who work together as a cross-cultural global team.
are dedicated to the production, Proprietary agricultural practices, customized sys-
handling, and distribution of per- tems, worldwide refrigerated shipping capability, and
ishable products throughout the specialized customer service and distribution allow
globe. Its products are shipped on Dole to properly handle over five million perishable
David A. DeLorenzo
Dole vessels which continually cartons per week in over 90 countries of the world.
President and
Chief Operating Officer
cross all of the world’s seaways. Despite the weather, 1998 was a very significant year
Dole is organized on both a for the Dole environmental management program. In
product and a regional basis. Regions are divided into July 1998, Dole’s banana operations in Costa Rica
both sources and markets, and products are produced became the first agricultural producer in the world to
both for local regional markets as well as for export to receive certification that its operations conform to the
other regions of the world. For example, our Asian environmental management system requirements of
region produces both for its own market demand within ISO 14001 (the International Standard Organization’s
Asia as well as exports to Dole markets in North environmental management standard). Certification to
America, Europe and Latin America. the standard means that Standard Fruit de Costa Rica, a
wholly-owned Dole company, has the systems in place
to manage its environmental obligations responsibly,
The nutritional facts, presented in this report by some of
minimizing risks to the environment while maximizing
the Dole 5 A Day Fruit and Vegetable Friends, are taken from
the quality and safety of its products. Later in 1998,
Dole’s subsidiaries in Thailand and Ecuador became the
Dole5aday.com. This website, developed along with
next operations to be ISO 14001 certified. Other Dole
other interactive materials, is part of Dole’s commitment
operations around the world are soon to demonstrate
to the nutritional education of children and their that they also deserve ISO 14001 certification. Certifica-
tion to the ISO 14001 standard is just one more indicator
families. Another educational project, scheduled for release
that, for Dole, excellence in product quality and excel-
in 1999, is THE ENCYCLOPEDIA OF FOODS: lence in environmental protection go hand in hand.
THE HOW AND WHY OF HEALTHY NUTRITION,
a comprehensive publication authored by
nutrition experts at the Mayo Clinic, the
University of California, Los Angeles, and Dole
Food Company. The beautifully illustrated
book will provide healthful dietary guidelines
for nutrition and fitness as well as teach
the connection between food and nutrients.
The recently acquired fresh-cut flower businesses
Flower Division Management
will integrate well into Dole’s established distribution
(Seated): Geno Valdes
network and customer base.
(Standing, left to right): Lorenzo de la Torre,
Lourdes Espinoza, Evelyn Macia, Josefina de Zuluaga
6 D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

9. To further diversify its wide range of products, Dole acquired several large fresh-cut flower
companies in 1998. These acquisitions afford the opportunity of supplying flowers to the supermarket
customers that already purchase the Company’s other perishable products.

10. Innovative field harvesting and packing ensures
better quality produce and fast, fresh delivery from
field to supermarket.

11. Dole North America
The North American consumer demand for fresh,
healthy products allowed Dole to once again reach
record market shares in its leading products, such as
bananas, packaged salads and canned pineapple.
DOLE FRESH VEGETABLES
levels, affecting the citrus, deciduous and
Dole Fresh Vegetables achieved record sales and earn-
almond operations. The Washington apple
ings in 1998. The commodity business was the one seg-
operations were impacted by hail-related
ment that capitalized upon favorable market conditions
problems in key orchards.
associated with El Niño rains. Additionally, investment in
Foremost among the year’s weather-
Dole’s state-of-the-art manufacturing plants, customer
related events was the freeze that hit
service and new products drove fresh-cut salads to new
California’s San Joaquin Valley during
sales, earnings and market share records. The retail fresh-
Christmas week. The extremely low tem-
cut salad category continued to exhibit strong growth,
peratures associated with this freeze severe-
with an eighteen percent increase in sales for 1998. Dole’s
ly damaged the Company’s citrus crops
growth outpaced the category posting a thirty-five per-
that are located throughout the Valley. As
cent increase in retail sales for the same period.
previously announced, Dole took a charge
Based upon strong customer demand, Dole expand- (from top)
Lawrence A. Kern,
of $20 million, which consists primarily of
ed its asparagus operations to provide year-round sup- President,
plies. Sales to the food service trade grew significantly as Dole Fresh Vegetables
Gregory L. Costley,
food service operators turned to Dole for reliable sup-
President,
plies of consistently high quality and safe vegetable Dole North American Fruit
Peter M. Nolan,
products. Dole Fresh Vegetables leads the industry in
President,
food safety. Dole Packaged Foods
After extensive research, Dole will introduce an
exciting new line of gourmet salads called “Great
Restaurant Salads” in early 1999. New products contin-
ue to energize the fresh-cut category and Dole is com-
mitted to introducing marketing programs and new
products that will continue to attract consumers to the
Dole franchise.
FRUIT OPERATIONS
Adverse weather conditions in 1998 affect-
ed Dole North American fruit opera-
tions. Due to El Niño, rainfall in
California and Florida hit record
9
D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

12. Barney Broccoli says, “Eating cruciferous vegetables
such as broccoli, Brussels sprouts, cabbage, cauliflower,
and turnips may guard against cancer. Broccoli is
an excellent source of vitamin C and a good source of
vitamin A and fiber.”
crop inventory losses and reductions in grower receiv- Apple operations in Washington State were signifi-
able recovery estimates. In addition to that charge, three cantly enhanced by the acquisition of a third packing
of five California citrus packing houses have been facility. This purchase, done in conjunction with an
closed, and will remain closed for most of 1999. The acreage acquisition by Prudential Insurance Company,
major thrust of the California citrus operation in 1999 has resulted in Dole packing facilities operating at near
will be to rehabilitate properties in anticipation of the capacity. It has also positioned the Company to better
next season. In addition to the charge taken in 1998, handle the increasing varieties of specialty apples,
Dole currently estimates that the freeze will negatively including the Cameo apple.
impact 1999 operating earnings by approximately $10 The Cameo apple has enjoyed great success and pro-
million to $15 million. duction is rapidly increasing. Dole markets the vast
Major changes have been made which will position majority of the available Cameo crop, and its market
Dole for greater success in the future. The Florida citrus leadership has led to strong acceptance of this product
operation entered into a joint venture with Metropolitan and has enhanced returns to Dole Cameo growers.
Life Insurance Company. This venture brings together
Dole’s farming, packing and selling expertise, with PACKAGED FOODS
MetLife’s citrus production properties. The alliance has Dole’s market shares in canned pineapple and canned
resulted in one of the strongest operations in the state pineapple juice reached new highs for the 1990 decade
of Florida. In California, Dole will be reformatting its of forty-five percent and forty-two percent, respectively.
fresh cherry business, which will involve relocating This growth was achieved in spite of significant El Niño-
assets to match the growth of the early-season California related supply disruptions from Thailand and the
cherry crop. Philippines in 1998.
New products continue to play a large role in the
growth of Dole Packaged Foods. Two new fruit items,
Dole peaches and Dole mixed fruit, were successfully
introduced in Atlanta and Jacksonville in early 1998.
The expanded line will be introduced to additional mar-
kets in 1999. Dole’s cinnamon covered raisins,
Cinnaraisins TM, the first new item in the dried fruit
category in years, has been successfully introduced in
selected markets.
The food service division posted its second year of
record earnings. Pineapple as a pizza topping has
become extremely popular. Dominos Pizza ® named
Dole as its “Pizza Topping Supplier of the Year.” In the
new product area, mangoes have been added to the
“salad bar” line-up to complement tropical fruit salad.
Automation is the key to improving the commodity vegetable segment. Also, Dole
has been a leader in developing and expanding the value-added pre-cut salad and
vegetable segment, investing in production capacity to satisfy growing demand.
10 D O L E F O O D C O M PA N Y, I N C . A N N U A L R E P O R T 1 9 9 8

13. The fresh vegetable business achieved record sales and earnings in 1998 as the business
transitions from commodity to value-added. The highly profitable fresh-cut salad business
continues to benefit from strong demand, and the 1998 opening of the Springfield, Ohio
plant has helped gain market share, particularly in East Coast markets.

14. Dole packs fruit in more than 1,000 packing houses
throughout Latin America and controls over 135,000
acres of banana producing land.

15. Dole Latin America
Hurricane Mitch wrought devastation to over 30,000 acres of
Dole agricultural plantings and infrastructure in Honduras,
Guatemala and Nicaragua. Thankfully, no employee lives were
lost in the hurricane or its aftermath due to a tremendous out-
pouring of assistance and relief aid from Dole’s worldwide family.
houses throughout Latin America and
controls over 135,000 acres of banana
producing land.
Dole supplements Company produc-
tion and reduces risk by purchasing a
significant portion of product needs from
independent growers throughout Latin
America. Dole assists over 350 growers to
BANANA PRODUCTION AND
HURRICANE MITCH successfully grow and pack Dole quality
bananas. Dole’s team of highly skilled
In October of 1998, Hurricane Mitch struck Honduras, (from top)
Juergen Schumacher
agronomists and technical staff train
Guatemala and Nicaragua. This devastating event dam-
President,
growers about Dole’s environmental pro-
aged eighty-two percent of Dole’s producing acres in Dole Latin America
cedures and standards. Roberto Zacarias
Honduras. The Dole team immediately mobilized to
President,
assist with relief efforts in the region. Dole employees Dole Honduran Beverage
worked around-the-clock to provide emergency rescue BEVERAGES
Dole’s majority-owned beverage operation is the domi-
services, food, clothing, shelter and medical supplies to
nant supplier of carbonated beverages in Honduras,
the recovering populations. After extensive review,
with commanding market shares of approximately
Dole has started to rehabilitate selected parts of the lost
seventy-five percent in soft drinks and ninety-nine per-
production areas and a recovery program is under way.
cent in beer. The operation exclusively represents
Looking to the future, Dole expects to recover the
Coca-Cola® and Canada Dry® products, and has its own
production losses of 1998 and has implemented plans to
brand of fruit-flavored soft drinks, Tropical ®, which
replace the lost volume related to Hurricane Mitch with
accounts for twenty percent of its soft drink sales vol-
its Ecuadorian and Colombian sources.
ume in Honduras. Soft drink consumption per capita in
The past year has been one of the most challenging
Honduras is one of the highest in Latin America. The
production years in recent history for Dole’s banana
division also produces and/or distributes four leading
operations. Extreme flooding from the El Niño weather
domestic brands of beer, along with the internationally
phenomenon reduced overall banana industry produc-
recognized brands of Holsten ®
tion by eighteen percent in Ecuador, and drought condi-
and Budweiser ®. Vertical
tions caused by El Niño reduced industry production by
seven percent in Colombia. Despite extremely adverse
weather effects, total Dole production decreased only
seven percent from the record year in 1997.
Over 22,000 employees are part of the Dole Latin
America team which strives to bring to market the
quality, safest fresh produce possible. Dole
highest quality, safest fresh produce possible. Dole
p a c k fruit i n more h a n 1,000 a c k i n g
packs s f r u i t in m o r e t than 1, 0 0 0 ppacking
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16. “Just one-half of a grapefruit contains all of the vitamin C
your body needs for the day,” proclaims Gretta Grapefruit.
Vitamin C heals cuts and scrapes, helps teeth and gums
stay healthy, bones stay strong, and may also reduce the
risk of heart disease and some types of cancer.
operations include a sugar mill, a plastic case and bottle JOINT VENTURES/NEW BUSINESS
business, and bottle cap manufacturing. The division OPPORTUNITIES
Proban Alliance At the close of 1998, Dole entered into a
also operates an edible oil and soap operation with well-
strategic alliance with Proban, a well-established promi-
established local brands.
nent grower group in Colombia. As a result of this
During the year, a new soft drink bottling line was
alliance, Dole will ship approximately twenty-eight per-
installed. State-of-the-art technology is used for the pro-
cent of total Colombian banana exports. This addition
duction of the family-size returnable plastic bottle that
will yield greater efficiencies and lower production and
Coca-Cola® has strategically positioned in Latin Ameri-
shipping costs.
ca to expand sales. Additionally, eight new beer tanks for
fermentation and maturation were added to Dole’s exist-
Value-Added Dole Latin America continues to focus on
ing facility. These and other plant upgrades are being
its core products and markets and evaluate opportuni-
made to fulfill projected growth in product demand.
ties to build earnings and expand the Dole® brand name
Dole’s efforts to expand its responsibility for product
throughout Latin and South America. Dole expanded
distribution in Honduras’ rural regions continue and
its local Chilean distribution business by opening a new,
Dole now handles approximately eighty percent of these
state-of-the-art distribution center. Additionally, Dole
sales. This strategic move has rendered outstanding
constructed a new salad processing facility at this site
results as new routes and distribution centers are added.
that marks Dole Latin America’s entry into the fresh
Damage by Hurricane Mitch, particularly in the rural
vegetable value-added business.
regions of Honduras, continues to affect Dole’s distribu-
Dole also completed a state-of-the art fruit processing
tion in this market but it is expected that this situation
facility in Honduras and plans to launch fresh, processed
will significantly improve in the forthcoming months.
products into the North American market in 1999.
CHILE
Today, Dole Chile exports to over fifty countries world-
wide. Dole Chile had another record year of export vol-
umeswith the exportation of 18 million packagesof grapes,
stonefruit, apples, pears and kiwis. Dole continues to be
Chile's largest fruit exporter and the volumes in 1998
further established Dole’s position as the premier
Chilean exporter.
Throughout the world, the diversification of markets
gives Dole great flexibility in maximizing sales and
directing product volumes when facing challenges in
certain markets. In 1998, this allowed Dole to success-
fully send fruit to different markets after the virtual eco-
nomic collapse of several Asian nations as well as Russia.
Great care goes into the packing of Dole bananas by thousands of dedicated
employees throughout the world.
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17. Dole has the world’s largest dedicated refrigerated containerized shipping fleet, which
will be strengthened in 1999 with the addition of two new state-of-the-art vessels.

18. Increased automated field harvesting and packing
at Pascual Hermanos in Spain has assisted in expanding
the division to be a year-round, rather than seasonal
producer of fresh vegetables.

19. Dole Europe
Dole Europe sales were $1.2 billion in
1998. Dole Europe continued to concentrate
on building retail relationships through
service. The essence of the Dole ® brand is
William F. Feeney,
consistency in both product quality and President,
Dole Europe
condition, on-time delivery, innovation,
range of product line, and an assurance of
agricultural and distribution practices that
meet the highest criteria of food safety and
environmental protection.
FORWARD INTEGRATION SOUTH AFRICA
Dole Europe completed the acquisition of sixty percent The new South African government deregulated fresh
of SABA Trading AB during the fall of 1998. SABA is fruit exports at the end of 1997. Previously, growers
Scandinavia’s largest fruit and vegetable importer and were required to export through export boards, which
distributor with over $500 million in sales. Headquar- controlled distribution through European panelists.
tered in Stockholm, Sweden, SABA has banana ripen- South Africa is a major supplier of citrus, apples, grapes,
ing facilities, produce distribution centers and flower pears and stonefruits to Europe. Dole founded Dole
distribution facilities throughout Sweden. Dole is the South Africa in March 1998, at the beginning of the cit-
majority shareholder while two of Sweden’s largest rus export season, establishing it as the second largest
retail groups each hold minority shares. SABA provides citrus exporter behind the South African Citrus Board.
Dole with an opportunity, in joint venture with retailers,
to develop retail service centers and add value to
Dole’s produce imports.
SABA owns one of Europe’s largest exotic
fruit import and distribution companies, FTK
Netherlands. Together with Dole’s exotic fruit
importer VBH, Belgium, Dole has added leading
lines of exotic fruits, such as mango, avocado,
passion fruit and lychee to its expanding
product range.
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20. Kevin Kiwi is proud of the fact that two kiwifruit provide
240% of your body’s daily requirement for vitamin C, and one
serving provides 16%, 14% and 10% of your daily requirements
for fiber, potassium and vitamin E, respectively.
First season citrus exports exceeded $25 million. Dole ducer. Dole looks forward to a large contribution from
South Africa began stonefruit and grape exports in Pascual Hermanos through expanded produce volume,
November while the main export season of grapes, distribution range and profit growth.
apples and pears is early 1999. Dole South Africa will
have nearly $100 million in sales for 1999, supplying RUSSIA
southern hemisphere fruits to Asia, North America, and The collapse of the Russian economy during the sum-
Europe, fully complementing the Dole Chile export and mer of 1998, resulted in drastically reduced banana and
marketing programs. other fresh fruit sales to that market. The Russian prob-
lem also had short-term effects on adjacent markets
such as the Ukraine, Poland and the Balkan states.
SPAIN
Dole’s Spanish citrus and vegetable business, Pascual Dole’s St. Petersburg office has reduced receivables and
Hermanos, greatly improved performance during 1998. selected only sound and reliable distributors that can
Management was changed and the citrus operation withstand the pressures of uncertain economic policy.
downsized. Citrus programs focused on supermarket Dole continues to cautiously supply the Russian market
requirements. The iceberg lettuce operation was which represents over 150 million consumers. The
improved with increased drip irrigation and expanded reduction in Russian imports puts considerable pressure
field packing. Production was increased in specialty sal- on other Eastern European markets which made pricing
ads such as baby lettuce and leafy salads. Specialty in the second half of the year very challenging.
tomato production, especially cherry tomatoes, was
increased with expanded green housing. Pascual Her- NEW EUROPEAN UNION QUOTA
manos is now a year-round, rather than a seasonal pro- The European Union has changed the E.U. banana
regime, commencing January 1999, due to a ruling by
the World Trade Organization (“WTO”) subsequent to
complaints from the United States, Ecuador,
Guatemala, Honduras, Panama and Mexico. There will
continue to be a Latin American Quota and an ACP
Quota (i.e., former European colonies in Africa, and the
Caribbean) as well as licenses and tariffs on Latin
American production. The new regime is still being
challenged by the United States and Latin American
banana producers and will be subject to new WTO
panel findings early in 1999.
SABA, the recently acquired Scandinavian fruit and vegetable distribution
business, is a significant step in Dole’s strategy to be the dominant supplier
of fresh produce in Europe.
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21. Dole’s acquisitions of SABA Trading AB of Sweden and Pascual Hermanos of Spain have increased
the Company’s European growing and packing capacity and added strength to Dole’s transportation
and distribution network.

22. In Asia, Dole has the broadest product mix of any region
in the world. In Japan, Dole is developing partnerships
with local retailers and distributors to jointly establish
ripening facilities and distribution centers.

23. Dole Asia
Despite the 1998 El Niño weather pattern, Dole Asia
achieved sales of approximately $800 million by the
maximum utilization of its production resources in
Asia and its sourcing capability with affiliated
Paul Cuyegkeng
companies and strategic partners around the world. President,
Dole Asia
Dole Asia sales in Japan, its flagship market, operation in 1998. This year, Stanfilco shipped
increased seventeen percent in local currency more than twenty-three million boxes of fruit to
compared to 1997. This increase was achieved by Japan, Korea, China, New Zealand and the Mid-
continued consumer confidence in Dole’s high dle East, while Dolefil, Dole’s pineapple produc-
quality banana and pineapple products, and the tion division also located on Mindanao, produced
successful new product introduction of locally 414,000 tons of fresh and processed pineapple.
processed, fresh-cut vegetables and salads. In early 1998, Dole Asia’s key divisions in the
Dole’s new product line of fruits packed in Philippines and Thailand embarked upon a cost
clear plastic cups continues to enjoy brisk sales in reduction program designed to counter the
Asia and Europe. Manufactured primarily by expected negative effects of El Niño. Tropifresh,
Dole Philippines and Dole Thailand, these conve- Dole Asia’s diversified fruit, vegetable and cut
nient fruit cup products provide Dole’s customers flower producer located in the Philippines, sig-
with an excellent alternative to conventional, nificantly reduced its farm maintenance costs.
canned fruit packaging.
The addition of Dole’s high quality, value- DISTRIBUTION
added pre-cut vegetables and fruit cups further Despite the economic recession in Asia, demand
expanded consumer awareness of the Dole brand remains high for Dole ® products in Japan.
in Asia where Dole enjoys a ninety-two percent Dole currently markets more than 100
consumer brand recognition. products in Japan, the broadest product
LOW COST PRODUCER
Devaluation of currencies in Asia contributed
favorably to reducing the cost of Dole Asia key
operations from production to marketing. As
expected, Dole Asia experienced downturns in its
pineapple, banana, asparagus and papaya opera-
tions due, in part, to the El Niño-related drought
in Thailand and the Philippines.
Stanfilco, Dole Asia’s producer of high
quality bananas located on Mindanao in
the Philippines, celebrated its 30th year of
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24. Bananas are a good source of fiber, vitamin C, and potassium.
One Bobby Banana has 16% of the fiber, 15% of vitamin C, and
11% of the potassium we need every day for good health.
mix of any region in the world. Following Dole Asia’s By early 1999, Dole Asia’s largest corrugated box
strategy of forward integration, nine Dole distribution manufacturing plant, Carmen Corrugated Containers
centers were fully operational in 1998, which allows (“CCC”), will be in full operation. CCC will service the
Dole to service its customers more efficiently with the increased packaging requirements of Dole Asia’s divi-
optimal product quality control. Dole Asia opened its sions in the Philippines as the new century begins.
latest Dole Distribution Center in Manila, again affirm-
ing Dole Asia’s commitment to deliver the freshest, PARTNERSHIP WITH GROWERS
highest-quality products possible to all of its customers. Following its successful partnering with growers in the
Philippines, Dole Asia expanded its contract-grower
program to other parts of the region, creating revolution-
MAJOR INVESTMENTS
Dole Asia pursued an aggressive strategy of infra- ary changes in the Asian agribusiness structure. From an
structure development during 1998. In September, initial base of 1,200 Japanese farmers in 1997, Dole’s net-
Dole opened a Vapor Heat Treatment Plant in the work of contract growers has rapidly expanded, giving
Philippines, the first plant of its kind in the Southern Dole a larger source of domestically grown products,
Philippines. The Vapor Heat Treatment Plant is particu- such as broccoli, tomatoes, cherry tomatoes, cabbage,
larly important to the efficient, high-quality production radishes, carrots, lettuce and melons for distribution to
of mango and papaya and is enabling Dole Asia to forge Dole Distribution Centers throughout Japan. Dole Asia
new partnerships with mango and papaya growers hopes to enlist 20,000 Japanese farmers by the year
located on Mindanao. 2002. Dole Asia’s contract-grower program is being
expanded to include local farmers in Thailand, for
pineapple, papaya, guava and passion fruit.
GROWTH OPPORTUNITIES
As the effects of 1998’s long drought diminish, Dole
looks forward to opportunities for growth in the Asia-
Pacific region.
In New Zealand, the newest and largest supermarket,
Pak ’N Save, opened for business during 1998 carrying
Dole products as its preferred fresh produce brand. In
Japan, increased demand for value-added products will
provide further opportunities for growth into the future.
Economic resurgence in the Philippines, increased
demand in Japan and New Zealand, and decreased
trade restrictions in China, Taiwan and Korea offer
growth opportunities for Dole Asia.
Dole Asia’s Philippine banana division has begun
phasing in a new cropping technology. This new process
is designed to augment productivity by as much as thir-
ty-five percent, and enable Dole to match high yield
periods to seasons of high market demand. The system,
One of the keys to delivering the freshest, highest quality produce throughout the world is
developed by Dole scientists based in Mindanao,
Dole’s substantial investment in refrigerated containerized shipping.
assures lower chemical usage, consistent with Dole’s
commitment to establishing ways to provide high-quality
products while protecting the environment.
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25. Dole canneries processed and shipped over 648,000 tons of fresh and packaged pineapples in 1998.