Cranberry Stressline

Feb 1 to Feb 7, 2000

International marketing: The evolving Coke story

2/6/00 Just what does it take to expand your beverage market overseas? Coke, known to be ubiquitous all over the world, is discovering that in modern times it just isn't that easy to compete with local brands in other countries. Under the leadership under new President Douglas Daft, big changes are in the works. Read about them in New York Times business reporter Connie Hays' article HERE. (Hays covers Coke, Pepsi and Ocean Spray for the New York Times.)


Correction: In the article entitled "Ocean Spray to Receive Discount," which we reprinted with permission,  Middleboro Gazette editor and writer Jane Lopes' name  was mistyped as "Lane Lopes."  Our friends at the Ocean Spray ExtraNet copied the article for their web site, typo and and all, which was news to Ms. Lopes.

Former Pillsbury executive, Tim C. Chan, new Chief Financial Officer at Ocean Spray

2/3/00 A Minnesota insurance company, RTW, announced in a press release today that their Chief Financial Officer, Tim C. Chan, 48, had been hired at Ocean Spray as  a Senior Vice President and Chief Financial Officer. He would be replacing John Henry who currently holds the position. Henry will continue as head of Grower Relations, a position he had in addition to his role as CFO.

RTW is based in Minneapolis. It is a company which endeavors to "transform the workers' compensation system in the United States, through an economic model that works for the employee, employee and insurer." You can visit their web site at www.rtwi.com and you can read a financial snapshot of the 280 employee company here.

Chan worked at Pillsbury where he was named controller in 1990 and then was promoted to vice president and controller in 1992. He managed of Pillsbury's consolidated accounting services, financial planning, and reporting and control activities. Prior to joining Pillsbury he worked at Oscar Mayer and at General Foods. He has a bachelor's degree from Bowdoin College and an M.B.A. from New York University.

Press release from RTW: MINNEAPOLIS--(BUSINESS WIRE)--Feb. 3, 2000--RTW, Inc. (Nasdaq: RTWI) announced today that Tim C. Chan, RTW's Chief Financial Officer for the past 18 months, has accepted a new position as Senior Vice President and Chief Financial Officer with Ocean Spray Cranberries, Inc. in Lakeville, Massachusetts. This is an opportunity for Tim to be the CFO of a $1.4 billion company and to move closer to his family on the east coast. Tim has provided strong and solid financial leadership to RTW during his tenure with the company. Read rest of RTW press release


Mass. growers legislation alert - muskrat trapping

muskrat.gif (216 bytes)  2/1/00 There is a bill coming before the State Senate this Thursday, February 3, House Bill # 4884, that has already been passed by the House.  If passed by the Senate, it will likely be signed by the Governor and re-legalize the use of "conibear" type traps to control muskrats.  This is an important bill to cranberry growers, because as most of us know, the conibear is the most precise, effective and humane method to reduce problem muskrat damage in cranberry bogs.  Most of the general public does not feel strongly one way or the other about animal trapping until a burrowing rodent becomes a problem on their own property.  The public in general has no desire to increase our costs or our vulnerability to property damage.  A small, but highly vocal group of "animal rights" activists has been able to distort the terms of public debate on the issue of rodent control.  The legislature is prepared to permit the conibears again, but THEY MUST HEAR FROM THE CRANBERRY GROWERS!  

Growers can ill afford the added expense of muskrat damage during these hard times, and in fact, rodent damage has increased dramatically on many bogs in the last couple of years since trapping was unduly restricted.  Draconian restrictions on control of non-migratory animals is a violation of the "takings" clause in the Fifth Amendment of the U.S. Constitution.  If the State declares resident animals to be under the State's absolute protection, but inflicts the expense of that protection on the property owner, then the State is "taking" the value of that property for a public purpose without due compensation.  Submitted by Tom Gelsthorpe


Quaker Reports 21 Percent Increase In Diluted EPS For 1999, A 10 Percent Increase For Fourth Quarter, Before Unusual Items

2/1/00 Quaker Oats, which has been reported to be interested in buying Ocean Spray, reports on profits for 1999 in a press release which you can read here.

Sales for Gatorade, a product virtually unknown ten years ago, which finds itself having an impact on the juice aisle along with "real fruit" beverages, have also been up significantly. Quaker may be in a financial and strategic position to extend its range from the sports drink category, which caters to the health conscious consumer in one way (replenishing electrolytes after exercise), to the health conscious consumer interested in the many health benefits of fruit juices.

See Business Wire report on Quaker Oats in right column, and note the mention (emphasis added) of the companies appetite for acquisitions.

This story was also covered by
The Patriot Ledger and The Standard Times

Decas crunches surplus numbers:
"Ocean Spray has bulk of inventory"

decas_01sm.jpg (3620 bytes) "We're not looking for a battle with Ocean Spray," says Decas, "I don't want to polarize the industry now that we have an opportunity to work together."

2/5/00 -  Wareham, MA - John Decas, CEO of Decas Cranberry Company, in remarks following a presentation about a potential cranberry marketing order made by David Farrimond, presented the results of his own analysis of the cranberry inventory. While Farrimond knows these figures, he is forbidden by law to reveal them. 

According to Decas, Ocean Spray has, by far, most of the surplus. Decas Cranberries has no surplus.  He says that Northland has most of the independent surplus. CONTINUED


Decas issues challenge to handlers

2/4/00 In an article titled "Cranberry market quota looms" in the Cape Cod Times, John Decas of Decas Cranberries based in Wareham, MA., challenged other handlers to reveal the amount of fruit they had in storage. He said he would publically reveal his inventory if other handlers did the same. Decas recommends destruction of the berries currently in freezers.  David Farrimond, director of the Cranberry Marketing Committee is quoted as saying "the problem may get so big nothing can help; basically there's going to be some growers leaving the arena." Read Cape Cod Times article here.


For your information:

What is a proxy fight ?

2/4/00 Proxy fights, sometimes called proxy battles or contests, are common in the corporate world where, because they are public, they are often covered by the media. They are defined as a contest between factions of stockholders in a company, in which each group attempts to gain control by soliciting signed proxy statements for sufficient votes. Another definition is: a battle for the control of a firm in which the dissident group seeks, from the firm's other shareholders, the right to vote those shareholder's shares in favor of the dissident group's slate of directors.

Links of interest: The SEC and proxy fights | Using cyberspace to communicate with shareholders electronically | An example of proxy fights handled by one large west coast law firm


Tropicana's juice train

2/2/00 Tropicana operates the beverage industries only rail fleet which, with the addition of 135 new cars now being constructed, will total more than 400 refrigerated cars. The "juice train" is a mile long billboard for Tropicana along the highly visible eastern seaboard rail route. It runs five days a week from Florida to New Jersey, where Tropicana's main distribution center is located. It also runs twice a week to a center in Ohio. Read related company press release here.


       Quaker Oats `BBB+' Sr Debt On Rating Alert - Positive by Fitch IBCA

NEW YORK--(BUSINESS WIRE)--Feb. 1, 2000--Quaker Oats Co.'s $700 million 'BBB+' rated senior debt is placed on Rating Alert-Positive by Fitch IBCA, Inc. The action follows continued improvement in the company's financial performance and credit profile. The company's $500 million 'F2' rated 3(a)3 commercial paper program is affirmed.

As a result of the success of Quaker's strong brands, increased product innovation, and strategic portfolio rationalization, its operating performance has steadily improved. While revenues declined modestly from 1998 to 1999, earnings were up significantly and EBITDA margin increased by about 200 basis points to 17.1% during the period. The improved profitability, combined with a reduction in its debt burden has helped to strengthen the company's financial position.

Fitch IBCA plans to meet with management to review Quaker's strategic operating and financial plans. Also considered will be the progress of its ongoing restructuring program and the international operating environment as well as the company's appetite for acquisitions.

 

 


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