Cranberry Stressline
Archives
November, 2001
Beacon
Hill Institute study: No Thanksgiving for the Massachusetts Cranberry
Industry; Update on DeMarco lawsuit;
Northland commercials take aim at Ocean Spray's cranberry content;|
Welch's
goes on offensive in marketing challenge against cranberry: Ocean Spray
focus of video clip
Affiliate of Sun Capital Partners
Acquires Control of Northland Cranberries, Inc. as Part of a Successful
Debt and Equity Restructuring; New Northland Board; Northland
no longer to be traded on NASDAQ, Northland Cranberries, Inc.
Announces One-For-Four Reverse Stock Split to Facilitate a Potential
Debt and Equity Restructuring Transaction; Editorial:
Nantucket Nectars -- If
you can't fix it, sell it
Update on DeMarco vs. Ocean Spray 11/26/01 Ocean Spray had until November 21st to file a response to the DeMarco Complaint. They have done so, filing a standard motion to dismiss. They have challenged the legal sufficiency of the Complaint. A briefing schedule has not yet been set. Stressline will have further information if and when it becomes available.
N.Y. Times: Another reason to eat cranberries Bangor Daily News: Cranberry glut nearing its end DNE World Fruit sales now selling Spanish clementines under Ocean Spray label "We have the licensing rights to use the Ocean Spray label, so we wanted to leverage consumer awareness with that brand name on our clementines." Bill Weyland, for DNE in The Packer Also from the DNE web site Fresh Ocean Spray Argentine lemons..... Northland Cranberries' most recent SEC filing details recent acquistition 11/17/0l
11/19/18 A front
page article entitled "State
Cranberry Growers get Squeezed" in Sunday's New Bedford Standard
Times* once again pits Decas Cranberries against Ocean Spray. The
article, which features two photographs of John Decas, says that
"critics accuse Ocean Spray of manipulating government regulations
to achieve market dominance..." and cites a study by the
Beacon Hill Institute for Public Policy Research at Suffolk University
as supporting this conclusion. The study, No
Thanksgiving for the Massachusetts Cranberry Industry, was authored
by David G. Tuerck, Executive Director, Beacon Hill Institute and
Chairman and Professor of Economics, Suffolk University; John Barrett,
Research Economist, Beacon Hill Institute; and Corina Murg, Research
Assistant, Beacon Hill Institute.
The Standard Times quotes Chris Phillips on the marketing order "(regulation) has been helpful to the cause of balancing supply and demand... but we know it's been excruciating for growers." *Not available online New Northland commercials take aim at Ocean Spray's cranberry content 11/15/01 (click photo to enlarge) Northland Cranberries is airing commercials on The Food Network promoting it's 100 juice 27% cranberry blends with a direct comparison with Ocean Spray's blended cranberry juice products, none of which contain 27% cranberry juice. The voice-over of the commercial emphasizes the cranberry health studies which were all done using 27% cranberry juice. The text is as follows:
The imagery of the commercial seems to emphasize informed choice. The consumer is shown with her cart on the juice aisle (photo one) shopping for a cranberry juice blend. She looks over the various choices, Ocean Spray among them (photo two). Then she checks out the Northland label and is pleased by what she sees (photo three). It has 27% cranberry juice (photo four). The segment of the commercial sure to stir up the most controversy, illustrated by the photo above, shows a number of Ocean Spray blends with various percentages zooming in from different bottles of Ocean Spray juice blends, and then fading out. It ends with 6% alone on the screen in front of a bottle of Cran-Grape (photo five). Other news 11/16/01 Cranberries
Rank High in Antioxidants, New Research Cranberry Institute Searchable Government Farm Subsidy Records Now Available Welch's
goes on offensive in marketing challenge against cranberry 11/12/01 (Photo from Welch's video clip, click to enlarge) Welch's new campaign promoting the health benefits of purple grape juice (see Drinking Purple Grape Juice may also help with Urinary Tract Health ) challenges cranberry juice as the sole choice for consumers interested in a product that may benefit urinary tract health. Their media releases also state that they are promoting only their purple juice for certain health benefits (cardio-vascular, anti-oxidant, and UTI); unlike Ocean Spray, whose latest pronouncement (in the 11/9/01 Standard Times) states that their "white juice has the same health benefits but tastes a bit sweeter." In a follow-up sentence, Ocean Spray's vice-president for international sales, Malcolm Lloyd makes a seemingly contradictory statement. He is quoted in the same article as saying "like the difference between white wine and red wine." Scientists have made similar discoveries about the different health benefits between white wine and red wine as they have made for white and red or purple grape juice. (Ed. note: Wine maker's science marches on: read cutting edge research.) Until now with the UTI studies, Welch's has promoted the health benefits of its purple grape juice as heart healthy, and the health benefits of its white grape juice as being easily digestible for babies, using scientific studies which compare it to pear juice and apple juice. Ocean Spray is promoting the white cranberry juice as being ideal for families with children because they claim that it does not stain, and "has the healthy goodness of traditional cranberry juice without the tartness." Welch's uses Niagara Grapes for its white grape juice. Ocean Spray's new white cranberry juice, is made from cranberries which are harvested before they have fully ripened to their red color, and have developed their complete compliment of chemical compounds, some of which are thought by scientists to offer certain health benefits. The white cranberry juice is expected to compete with Welch's white grape juice. 11/15/01 From the Packer: Fresh cranberries available until December 11/15/01 Researchers Find Tart Cherries Fight Arthritis Pain, Inflammation Poor cranberry crop has silver linings - 11/12/01 WI Rapids Daily TribuneCranberry On TV: Farmer Creates Patriotic Bog Boston Ch.5 Ocean Spray will spend $28 million on commercials this year alone- 11/11/01 Standard Times 11/9/01 Cranberry marketers not reaching young men Standard Times Science journal publication on health benefits 11/7/01 - Article
on Welch's layoffs in Boston Globe New Northland Cranberries Board 10/7/01 The new six member Northland Cranberries Board of Directors consists of five top Sun Capital Partners executives, including the companies co-founders Rodger R. Krouse and Clarence E. (Bud) Terry. Both are managing directors of Sun Capital, as is fellow board member, Marc J. Leder. Joining them on the board are Sun Capital V.P.'s Kevin J. Calhoun and David L. Kreilein. The sixth board member is John Swendrowski, founder and CEO of Northland Cranberries.
John Swendrowski is the Chairman of the
Board. Marc Leder and Rodger Krouse are Vice-Chairmen.
Biographies of Northland Cranberries BOD, provided by Sun Capital Partners. Wisconsin Rapids Daily Tribune article on Northland New cranberry variety releasedPress Release: (From PR Newswire) Ocean Spray Offers Consumers Free Chef's Recipe Collection for Fresh Cranberry Season11/6/01 Nantucket may loose cranberry as local color Cape Cod TimesPress Release Affiliate of Sun Capital Partners Acquires Control of Northland Cranberries, Inc. as Part of a Successful Debt and Equity RestructuringNorthland Anticipates Reporting a Pre-Tax Loss of Approximately $100-110 Million for Fiscal 2001, Including Approximately $100 Million of Asset Writedown Charges11/6/01-- Northland Cranberries, Inc. (Yahoo! Bulletin Board: NRCNA - news), manufacturer and marketer of Northland 100% juice cranberry blends and Seneca fruit juice products, announced that it consummated a debt and equity restructuring that allows it to successfully avoid a bankruptcy proceeding. Northland expects that this restructuring will provide it with sufficient working capital and new borrowing capacity to once again aggressively market and support the sale of its Northland and Seneca brand juice products. The debt restructuring was accomplished through the exchange by the members of Northland's then current bank group of approximately $151 million of total outstanding revolving credit agreement indebtedness for a total of $38.4 million in cash, as well as by Northland's issuance of revised debt obligations in the total principal amount of $25.7 million and newly-issued shares of common stock representing a total of 7.5% of Northland's fully-diluted common shares to the certain bank group members which decided to continue as lenders to Northland. The debt restructuring occurred pursuant to an agreement for the assignment and assumption by Sun Northland, LLC, an affiliate of Sun Capital Partners, Boca Raton, Fla., of a portion of Northland's bank group indebtedness. CONTINUED Sun Capital won Buyouts' first small deal of the year award
Facing liquidation, Northland restructures debt
10/6/01 Article in Milwaukee Journal Sentinel Northland
no longer to be traded on NASDAQ Press Release Northland Cranberries, Inc. Announces One-For-Four Reverse Stock Split to Facilitate a Potential Debt and Equity Restructuring Transaction Northland Shares to Trade Over-The-Counter Under New Trading Symbol 'NRCNA' 11/6/01-- Northland Cranberries, Inc., manufacturer and marketer of Northland 100% juice cranberry blends and Seneca fruit juice products, announced that its Board of Directors approved a one-for-four reverse stock split. As a result of the reverse stock split, each four Northland shares outstanding is being automatically converted and combined into a single share. Fractional shares otherwise resulting from the reverse stock split will be rounded up to the next highest share. Northland's Board of Directors was previously provided with the authority to effect this reverse split by Northland's shareholders at its January 30, 2001 annual shareholders meeting. Northland is effecting the reverse stock split to facilitate a potential debt and equity restructuring that, if consummated, would allow it to successfully avoid a bankruptcy proceeding. There can be no assurance that any such restructuring transaction will be consummated or on what terms or conditions. However, it is expected that a successful restructuring would likely provide Northland with sufficient working capital and new borrowing capacity to once again aggressively market and support the sale of its Northland and Seneca brand juice products, but would likely significantly dilute current shareholders' ownership percentage in Northland. Editorial: If you can't fix it, sell it
11/3/01 Nantucket Nectars could have been be a sparkling diamond, a small but valuable addition to Ocean Spray shareholder's portfolio, during these difficult times for the cranberry industry. Instead, the subsidiary languished, while a similar company, Odwalla, under smart and confident management, grew and made itself into a lucrative takeover target. It is about to make its shareholders a tidy profit as it becomes a part of CocaCola. The growers of Ocean Spray should be so fortunate. The "Two Toms" expressed effusive optimism when the homegrown company they nurtured into a business phenomenon was purchased by Ocean Spray. They believed that the wise elders of Ocean Spray would take upstart Nectars to the next level and beyond. Instead, Nantucket Nectars languished under the tutelage of Ocean Spray's mentors, while Coke and Pepsi and other beverage giants strategized about how to compete for the all-important super cool, super healthy juice market. Ocean Spray denies it is strapped for cash. They deny that its bank is pressuring it to make substantial payments on its loan. Therefore, if and when Ocean Spray sells Nantucket Nectars, Stressline eagerly awaits the explanation as to why a juice company which touts itself as "world class" would sell a subsidiary with such growth potential as Nantucket Nectars.
Mixed messages: "We think the brand name can play where our strong fruit equity plays," Papadellis* said. On agenda: 1) expanded distribution for single-serve products; 2) increased support/expansion for its Nantucket Nectars juice business. And OSC to spend some $30 million on advertising in the next 12 months. "That's up from almost nothing last year. We'll be using television, print and radio," said Papadellis. From: The Delany Report October 8, 2001 * Randy Papadellis,
President of Ocean Spray Cranberries, is second in command under CEO
Robert Hawthorne. More on Nantucket Nectars in October Edition below
|
DeMarco
files suit against Ocean Spray
|