Ocean Spray News for March/April, 1999


Ocean Spray Enters Smoothie Market in U.K.
Source: Brand Strategy

Ocean Spray is marketing a fruit puree and pure fruit mixture in the United Kingdom which will compete in the growing "smoothie" market. The initial flavors will be cranberry and cranberry/ raspberry. An advertising campaign is currently underway, with a cost of 1.1 million British pounds.

New easy to carry Ocean Spray container
Source: Brandweek

A new Ocean Spray gallon container is being launched in the Midwest and be nationwide by the end of summer. It is fully recyclable.
Ray Bourque, Ocean Spray director of product and packaging R&D describes the new gallon container as combining "the shelf appeal of clear plastic with the consumer convenience of a built-in handle."

 


 

Ocean Spray has been in the forefront of implementing new computer technology
Source: Computer Reseller News

"We really wanted to be able to go from the shop-floor level and send the information to the operations people on the shop floor that they can then use in real time...we then collect information about inventory and that sort of thing and send it back up to the business system." Mike Smith, National manufacturing systems manager at Ocean Spray's Henderson, NV. cutting edge automated  plant.

Innovative applications of computer systems have already reduced programming time by up to 50%. Plans are under way to link the Henderson system with the Lakeville office. Implementation is planned for September. For a detailed description of the Ocean Spray modularized manufacturing execution system, networking infrastructures, as well as the ERP system, click here to read The Sweet Business of Cranberry Sales: Ocean Spray Implements Microsoft Technology with aid of VAR partner in 4/19/99 Computer Reseller News.


First quarter demand for Ocean Spray products greater than anticipated.
 
SuperValue again advises member stores to pull Ocean Spray products out of house ads as co-op faces problems filling orders.
 
For the second time an internal SuperValue memo (Click here to read Memo) has come to the attention of Cranberry Stressline (click here for previous memo dated March 2, 1999) advising stores to remove Ocean Spray products from house ads, this time for May 23rd and May 30, 1999.  These were to be promotions for the 64 oz. cranberry blends and the 48 oz. grapefruit blends. The memo cites production problems at Ocean Spray and apologizes to the stores for the lack of notice stating that "Ocean Spray has not lived up to their commitments on shipping product for these promotions."

In a letter, also obtained by Stressline,  dated April 16, 1999 from Nancy McDermott, Senior Vice President in charge of Ocean Spray's In-Home Strategic Market Unit,  distributors are informed that  "Ocean Spray continues to face problems filling your orders and must now reduce promotional volume to restore the level of service you need. Effective immediately we are canceling all promotions scheduled for May and June to help replenish our inventory".

She goes on to attribute the problem to a misjudgment in demand in January which depleted inventory, and stronger than anticipated demand in February and March.

According to the letter, all previously planned promotions with shipment dates prior to June 21, 1999 are being cancelled. Plants, it is pointed out, are producing at capacity and have yet to reach manageable inventory levels.

Ocean Spray is in the process of implementing their Enterprise Resource Planning (ERP) program which when operational is expected to streamline all business processes. The ERP is a $30 million high-tech system for integrating all of the companies business operations. McDermott's letter states that Ocean Spray planned for some slowdowns while operations transitioned into the ERP program, they did not anticipate the high number of orders which were received.

The In-Home Division of Ocean Spray is an $800 million unit which is responsible for marketing all Ocean Spray cranberry and grapefruit products. McDermott was recently promoted to the head of the division from her prior position as senior vice president of Operations-Value Chain.  Her responsibilities included managing the implementation of the Enterprise Resource Planning system.

 

 

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