Cranberry Stressline Archives

2/6 to 2/10/2001

Ocean Spray in receipt of F.D.A. warning letter

Ocean Spray warning could be test case for entire food industry

Ocean Spray kept health claims online

Editorial, "Failure" on Cranberry Marketing Committee meeting and
related Op-Ed by Linda Rinta "I wish you were there."

Economic analysis by John Coffin, "Can your farm survive?"

Wall Street Journal: "FTC Raises Scrutiny of Deal Between Pepsi and Quaker Oats" 

and "NPR's Jason Beaubien reports on Morning Edition (Feb. 5, 2001) that the
nation's largest cranberry-growing cooperative of farmers is on tenuous financial ground.

It wants growers to be required to reduce cranberry production."

Ocean Spray kept health claims online

2/10/01 5:00 PM -- Although Ocean Spray took down a direct link from its primary web site, www.oceanspray.com, to its Grapefruit health web page, and changed the direct links to its "Cran-Health" pages, the pages that were the subject of an FDA warning letter were still online at noon today. A  web search could have located them at at least five different web addresses.

In order for these pages to have been inaccessible to users of the Internet they would have had to be deleted from the Ocean Spray web server. Otherwise some of the existing links on search engines could have remaind active, and search engines that constantly "spider" the web could have continued to list them.

Following a report published on Cranberry Stressline at noon today which included active links to these pages, they were removed from the Ocean Spray web server and no longer are on the Internet.

Ocean Spray in receipt of F.D.A. warning letter

2/9/01 The Food and Drug Administration issued a "warning letter" to Robert Hawthorne on January 19, 2001. It involves Cran-Health, grapefruit health, press releases and related publicity on one of the Ocean Spray web sites. It begins: "The Food and Drug Administration (FDA) reviewed your firm’s internet labeling for your Ocean Spray juice products. The container label for your grapefruit juice products directs the consumer to your website via the statement "For grapefruit health facts visit: www.oceanspraygrapefruit.com. " The container labels for your other Ocean Spray juice products also bear your internet website address "www.oceanspray, com." We have concluded that the labeling found on your internet sites causes your Ocean Spray juice products to be in violation of the Federal Food, Drug, and Cosmetic Act [the Act], and Title 21, Code of Federal Regulations [21 CFR]." The harshest criticism is that the Ocean Spray web site presents potentially dangerous information about the interaction of grapefruit juice with certain medications:

In addition, statements on your website under "Grapefruit Juice and Cancer Care," pose a serious safety threat as they not only overstate any possible benefit associated with grapefruit juice consumption but also understate the very real risks associated with concomitant use of certain drugs and grapefruit juice. Your website states that grapefruit juice "enhances the absorption and effects of some medications." This statement reflects the ability of grapefruit juice to block the metabolism of some drugs and, thereby, increase the blood levels of those drugs. The statement implies that the enhanced absorption and increased blood levels are a benefit. However, this statement may pose a serious risk for patients on certain medications.

  FDA Warning letter text | Warning letter PDF file FDA site link.

 


Wall Street Journal: "FTC Raises Scrutiny of Deal Between Pepsi and Quaker Oats" 

2/9/01 "Federal antitrust enforcers requested more information from PepsiCo Inc. and Quaker Oats Co., signaling that Pepsi's $14.5 billion buyout of the Chicago maker of the Gatorade sports drink will get tough antitrust scrutiny. While the Federal Trade Commission isn't expected to derail the deal, it could force Pepsi, of Purchase, N.Y., to sell off an overlapping product line or impose other restrictions as a condition of approval." Continued....Wall Street Journal

Ocean Spray warning could be test case for entire food industry

2/10/01 The Patriot Ledger broke a major story which may have implications for the entire food industry. In issuing a "warning letter" to Ocean Spray for presenting scientific claims on the health  and medical benefits of cranberry and grapefruit juice in its web sit. According to the FDA, because Ocean Spray labels direct consumers to their web site, the web sites are extensions of those labels. Hence anything on the web site must meet the legal criteria for acceptable labeling. This is the first time the FDA has extended the labeling regulations to web sites. The FDA has very strict standards for the health related claims that can be used on labels, and it is now applying these standards to the Ocean Spray web site.

The Patriot Ledger quotes Chris Phillips as saying "We take very seriously our responsibility to ensure that all the information posted on our web site or distributed publicly is truthful, accurate and fully substantiated," and goes on to report that Ocean Spray sent a response to the FDA on Feb. 2nd. This response has not, to date, been made public, although a response is available to the approximately 900 Ocean Spray growers who are allowed to view the restricted Ocean Spray web site.

According to the Patriot Ledger, Phillips says that Ocean Spray would consider its legal options because the FDA's interpretation imposes new restrictions on food companies' web sites, and "It may raise free speech issues."

Lisa Katic, director of scientific and nutrition policy for Grocery Manufacturers of America, is quoted as saying that the FDA "is blurring the line between advertising, Internet information and what's considered labeling... Manufacturers are very sensitive to FDA action in the form of a warning letter," Katic said. "...Certainly companies are watching this carefully... "This is specific to one company right now... "If they're putting a broad industry opinion out or a mandate out, we would act on that immediately."

Consumer advocates and civil rights attorneys are quoted in the Ledger. Ilene Ringel Heller, senior staff attorney for the Center for Science in the Public Interest, said the FDA's move against Ocean Spray "closes a major loop-hole." She predicts that this "is going to be a test case for sure. Opponents of the action may argue that the agency is trying to restrict free speech on the Internet."

Jerry Cohen, a board member of the American Civil Liberties Union of Massachusetts, is quoted by the Ledger as saying that the action raises "serious free speech issues... I think some overzealous staffer has gotten off on a tangent that the FDA will regret. He notes that the Federal Trade Commission could step in if a web site carries misleading advertising, stating that "The FTC probably balances free speech aspects better than the FDA." However, another free speech expert, Boston lawyer Jonathan Albano, said it doesn't matter where a company's statements appear "if the company is engaging in advertising then the government does have greater powers... The question is, is it advertising or is it an attempt to take a position on a health issue?"

Patriot Ledger article, "Wading into the web, FDA cites Ocean Spray" can be found by going to Feb. 9, 2001 on their archives.

Editorial

Failure

2/6/01 Thanks to near blizzard conditions landing in Providence, after one jolting aborted attempt at landing, all of the passengers burst into spontaneous applause once the plane finally rolled to a stop on the snow-slick runway. This display of common purpose was a double relief after spending two days at the Cranberry Marketing Committee meeting in Washington, D.C. CONTINUED

Decas responds:

Did you really expect a tea party

I do not agree with your assessment that the Cranberry Marketing Committee meeting was a failure. Of course there was aggressive debate.  CONTINUED

 

Op-Ed

I wish you were there

"It looked like a veiled battle for the Dole contract, at low prices, to me."

by Linda Rinta

2/7/01 -- I wish you were there. Of course, I respect your decision to stay home. It is expensive, time consuming and frustrating following this traveling carnival act around the country. But I wish you could have seen it. I have requested that future meetings are video tapped so that you might see the cranberry gods as they gamble with your lives. CONTINUED


Analysis

Can your farm survive? A new tool.

By John Coffin

2/6/01 -- Ocean Spray has recently reported that are that there are not enough votes to sell even a piece of the business at this time, and that returns are projected to increase to a little over $40/bbl for the 2003 crop. The good news is that we now know the best case scenario and can use it for financial planning. The bad news is that such planning shows that many – perhaps most -- cranberry farms cannot survive these conditions.  A new tool >>>


"NPR's Jason Beaubien reports on Morning Edition (Feb. 5, 2001) that the nation's largest cranberry-growing cooperative of farmers is on tenuous financial ground. It wants growers to be required to reduce cranberry production."

"Somehow if there was a siren singing out there, the cranberry people didn't hear it. We're seeing an incredible amount of growth in virtually everything else in the non-carbonated beverage business. Anything associated with fruit seems to be doing really, really well, except for cranberries, which are lagging far behind." Tom Pirko, President of Bevmark, a beverage industry consulting company in Santa Barbara, California.

"A lot of these people are going to be going out of business. So how do they want to do it? Do they just want to go out of business and lose their houses and lose their farms, or do they want to take advantage of their equity in Ocean Spray and vote for sale or merger of the company?" Ron Drollette, Ocean Spray grower.

"I would like to be able to say to you that all of us will survive this thing, but all of us will not survive it. What we do believe, as a board, is that more of us will make it with the co-op and with the brand than without it." Buddy Johnson, Chairman, OceanSpray.

You can replay the six minute story aired Monday on NPR's Morning Edition here.

Previous edition 

Topics: White cranberry juice, positions on marketing order, growers organizing,
the juice war between Coke and Pepsi